Pay Now, Pay How? National Selection and the Alternative Debit Payment

리서치사	Mercator Advisory Group, Inc.
발행일	2009년 06월	상품코드	90976
페이지 정보	43 pages, 19 exhibits
가격	US $ 2,950 ￦ 3,514,900 PDF by E-mail (Single User License)

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Abstract

New Research Examines the Impact Alternative Debit Payments Are Having on the Market

Alternative debit products have gained ground in online payments, but have yet to gain any real traction at brick and mortar locations. Decoupled debit may be finding a home in certain retail markets, but has not proved to be the success once feared by traditional debit card issuers. It' s obvious that financial institutions are exploring how they can leverage some of these new payment types to regain online purchases and consumer connections lost to these new payment forms, but they may be better served by paying closer attention to the mobile financial market. This growing market is the realization of card-less payments that presents the long-term threat to traditional debit card-based strategies. Simultaneously, the ACH is working hard to react to their new-found popularity.

Pay Now, Pay How? Natural Selection and the Alternative Debit Payment is a report by the Mercator Advisory Group that attempts to define the alternative debit payment schemes, such as decoupled debit, currently operating in the United States in the context of their market sustainability. In this report, we review the primary alternative debit payment models from the point of view of each of the major stakeholders in the transaction stream, including issuer, merchant, network, and consumer. Included in the study is a discussion of the market dynamics that are driving adoption, the impact to traditional debit issuers and the challenges in building an entirely new form of payment scheme. This report is designed to more closely examine the impact that alternative debit payments may be having on the market by the manner in which they are offered, selected, and adopted.

"This bifurcation between the physical buying world and the virtual buying world is just one of the challenges alternative payment types are facing as they consider their market opportunity from a consumer' s point of view," says Patricia Hewitt, Director of Debit Advisory Services, and author of the report. "Those payment methods that are quickly becoming a standard part of the Internet buying experience don' t translate easily or perhaps at all into the physical world."

Highlights of this report include:

Alternative debit payment schemes are proliferating and finding real traction in the e-commerce market as "payments as a service", but the physical retail market is still waiting for a proven success.
Decoupled debit cards have not delivered on the anticipated market disruption, but did pave the way for new thinking and new payment product development.
Financial institutions are cautiously beginning to enter the market with alternative debit products through direct sales or marketing alliances.
Regulatory and economic conditions should motivate even higher adoption rates, which may provide the economic stimulus needed for further infrastructure investments.
No one scheme of this type has all the stakeholder attributes of a successful new payment type, but subsequent developmental cycles should help separate products in their competitive markets.

Introduction

The Lexicon of a New Market

Key Traits

Payment System Stakeholders

Consumers
- The Online Effect
Merchant
- The Cost Factor
- Interchange Rethought
- Selection Criteria: Physical vs. Virtual
Issuers
- Financial Institutions
- The Mobile Connection
  - Secure Vault Payment
  - Mazooma
  - Moneta
- Decoupled Debit: Something for Everyone?
The ACH Network

The Sleeper

Noca
And Then There' s Risk...
The Wildcard

The Evolution Unfolding

The Time' s They are a' Changin'

TABLE OF FIGURES

Figure 1 Alternative Debit Payment Scheme Definitions
Figure 2 Critical Success Factors in Payment System Adoption
Figure 3 Payment System Stakeholders Success Attributes
Figure 4 Comparisons of Personal Savings Rates to Consumer Payments
Figure 5 Consumer Payment Preferences at POS
Figure 6 Ratings of Consumer Payment Form Characteristics, 2006
Figure 7 Internet Payments by Transaction Type, 2005-2010
Figure 8 Alternative Debit Payment Product Merchant Cost Comparison
Figure 9 U.S. Retail Sales Comparison, 2008
Figure 10 Online Retail Sales as % Total Retail Sales, 2000-2008
Figure 11 Alternative Payment Adoption Criteria, Physical vs. Virtual Merchant
Figure 12 Consumer ACH Payments by Type, 2008
Figure 13 Percentages of Adult Americans Who Have Bought a Product Online
Figure 14 Online Bill Pay/Mobile Banking User Retention, Profitability, and Usage Indicators
Figure 15 Evolutionary Timeline of NACHA, 1974-2005
Figure 16 E-Check Transaction Volumes, 2002-2008
Figure 17 Account Enrollment, Authorization, and Settlement Process
Figure 18 Alternative Debit Payments, Delivery Channel Development
Figure 19 Alternative Debit Payment Schemes, Attribute Selection Criteria