ja n / F e b 2 017
The Merchant’s Guide to Transactions, Cards & eCommerce
Blockchain, connected screens, digital wallets and more!
❱ Alternative e-payment solutions
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Restaurants & foodservice
❱ Hardware report: ATMs & ABMs
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TableKey of Contents theme
January/February 2017 Volume 8 Number 1 Editor-in-Chief Steve Lloyd email@example.com
Industry Disruptors 4
Blockchain: More than a buzzword
Managing Editor Sarah O’Connor firstname.lastname@example.org
Ingenico’s connected screens open new sales channel
Publisher Mark Henry email@example.com Contributors Vincent Alimi; Curt Binns; Andre Boysen; Anne Butler; Jason Davies; Michael Murphy; Eric Wilson
Digital disruption: Integrating business mobility in financial services
Creative Direction Jennifer O’Neill firstname.lastname@example.org Photographer Gary Tannyan President Steve Lloyd email@example.com For subscription, circulation and change of address information, contact firstname.lastname@example.org
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How digital wallets are transforming the payment experience
Why holistic purchase-to-pay automation is a game changer
Alternative 12 e-payments Mobile payments gaining ground in Canada Need for fast, flexible and secure payments system drives modernization in Canada
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Market report: Restaurants & foodservice
Hardware report: ATMs & ABMs
2017 industry events
Cash & cheques 22
Breaching the last bastion of cash
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MAr/Apr International Payments • Issuers • POS & mPOS • Cards January/February 2017
Blockchain: More than a buzzword
By Andre Boysen
rom data breaches to identity theft, to statesponsored hacking and crooks stealing real ad revenue with fake users, the integrity of our digital lives was thoroughly tested in 2016. Moving into the new year, it seems the scenario corporations and governments face with regard to more data breaches is not if but when. Never before has consumer data been so openly under threat. And yet, as they say, every cloud has a silver lining. With billions made vulnerable, a conversation has begun that places consumers at the centre of privacy and cybersecurity improvement initiatives. We don’t need a study to show that more and more of our lives are taking place online—that is the natural trajectory of the digital age. Our digital and real world identities are quickly becoming one 4
and the same; it follows that as our dependency on online services increases, efforts to defend user experience, security and privacy must empower the consumer to claim absolute ownership over their digital assets—just as we do in the real world. At the same time, service delivery organizations want to deliver on the long-promised vision of omnichannel service delivery but with a more cohesive and pleasant customer journey.
Enter blockchain Blockchain has emerged as an important tool in the fight to develop sound security measures for digital identities in a digital world. The technology is more than a trendy buzzword. Not only has its impact already been immensely disruptive in the financial services sector, but companies and governments worldwide have also begun to consider blockchain in strategies looking to empower and protect consumers’ digital assets. This is an important step in improving the January/February 2017
Industry Disruptors trustworthiness of digital identities and reinforces the notion that secure and private digital identity ecosystems are well within our grasp. Blockchain will be an important tool to separate the real bits from the fraud bits. In understanding the future of blockchain, it is first important to trace its evolution. The creators of bitcoin conceived blockchain as a tool to help solve problems associated with digital currency transactions—the “double spend” problem was a trust issue to make sure each “dollar” could only be spent once. In the following years, various other sectors came to see the applicability of blockchain’s distributed ledger design in protecting vital data from malicious alterations—providing trust that data being presented has provenance and integrity. The chief beauty and value of blockchain lies in its distribution and permanence. As a distributed ledger, data held within a blockchain system is not domiciled at a centralized location, but rather is digitally shared across multiple domains. Furthermore, the ability to detect when shared data has been altered increases its value and integrity. So, how exactly does this empower and protect consumers? One possible example would be for federated identity networks for consumers—allowing consumers to share information from one source, (like a bank) to prove identity in response to a desirable new service at a telco (like pre-registering to get an iPhone 8). A privatepermissioned blockchain could provide benefits like resiliency against DDOS attacks (thanks to many banks and other trusted organizations running blockchain nodes), data integrity (the telco would be assured that the data belongs to the person presenting it and has not been altered) and privacy (a blinding model that keeps the transaction participants from seeing each other, while maintaining high trust in the transaction). All of this would be conducted at the direction and consent of the consumer, with the privacy benefits of minimization of data and surveillance.
Beyond the expected Blockchain experimentation will continue to be applied to other sectors looking to protect the integrity of consumer data. For example, the healthcare industry would greatly benefit from integrating blockchain into its cybersecurity architecture, as patient records can be made available online with the absolute surety that they will never be shared with unintended audiences (while improving compliance, enforcement and deterring fraud). Voting systems also have the potential to be revolutionized by adapting blockchain— transparency on showing every vote counted with integrity without showing how everyone voted. Even government policy initiatives like green energy could use blockchain to create market incentives, transparency and demonstrate policy performance.
The future of blockchain Perhaps the most intriguing blockchain application of all is how it can make digital identity ecosystems a reality. Passwords are inherently vulnerable, as the mass data breaches and hacks of 2016 clearly showed. They no longer have the capacity to absolutely protect a user’s identity, putting any consumer data held behind an JAnuary/February 2017
authentication wall at risk. When paired with the right resources and partners, blockchain has the power to facilitate seamless identity ecosystems that eliminate the need for passwords everywhere, while also empowering consumers to take ownership of their digital assets. A digital identity ecosystem operates on the belief that consumers should be able to authenticate transactions using trusted attributes and blockchain has interesting properties to support this goal.
The chief beauty and value of blockchain lies in its distribution and permanence. As a distributed ledger, data held within a blockchain system is not domiciled at a centralized location, but rather is digitally shared across multiple domains. Furthermore, the ability to detect when shared data has been altered increases its value and integrity. For example, SecureKey is working with Canada’s biggest banks and other forward-thinking organizations to develop a federated digital identity ecosystem in which consumer data physically cannot be shared without explicit authentication and approval from the user. Identity information from trusted organizations, such as banks, can be used to validate identification at secondary organizations like telcos, government services, healthcare providers and others that require ID verification. Consumers can seamlessly access websites and services using a federated system of digital identification verification, facilitated by a private-permissioned blockchain. After identity information has been shared under the direction and consent of the consumer, a consumer can use their trusted banking credentials as login tokens to access other participating services with the absolute surety that their data is only being shared with who they want, when they want. And recovery gets easier, too. Amid all the jargon and hype surrounding blockchain, there is one driving force behind it all: putting the consumer in the centre of the transaction to enable consent and control. This is an exciting time to be a consumer in the digital age. If 2016 was the year consumers lost in digital privacy and security, 2017 will be the year they take back the rights to their digital identity and information. Blockchain is an important ingredient in making this happen. How’s that for a silver lining? Andre Boysen is chief identity officer for SecureKey, responsible for growth strategy, cultivating opportunities in new and existing markets and promoting demand for the company’s solutions globally. He serves as SecureKey’s digital identity evangelist and is recognized as a global expert on the topic of identity. PAYMENTSBUSINESS
Ingenicoâ€™s connected screens open new sales channel By Sarah Oâ€™Connor
ngenico, the global enterprise with 32 million terminals in 170 countries, is embracing innovation in a major way and the proof is their new connected screens. Part digital out-of-home advertising platform, part contactless payment terminal, connected screens were developed in partnership with French start-up Think&Go NFC and made their Canadian debut last fall at the Toronto International Film Festival (TIFF). They promise to bridge the gap between marketing tools, including coupons and loyalty programs, and payments while offering merchants a brand new sales channel, ideal for high-traffic retail environments and public spaces beyond the traditional storefront. For customers, it means convenience and a truly seamless payment experience for both physical and virtual goods. In April 2016, Ingenico Group acquired Think&Go NFC, which had developed the software behind the connected screens, enabling any kind of digital display to interact with connected objects like smartphones or transit passes. Prior to the acquisition Ingenico Group and Think&Go
Industry Disruptors NFC had been working together since 2015, investigating how to use contactless payment technology to transform digital advertising displays into genuine points-of-sale. “We are confident that this solution will be a big hit with merchants,” stated Michel Léger, EVP Innovation at Ingenico Group and the head of Ingenico Labs in a press release. “Integrating Think&Go NFC—which will still be managed by its founder, Vincent Berge—into Ingenico Labs gives us greater opportunity for expansion in the field of connected objects. This acquisition exemplifies the way we are implementing our Strategic Plan 2020, whose aim is to strengthen Ingenico Group’s leadership in omnichannel payment acceptance.” “Connected screens are designed to keep pace with market trends driven by societal change. With their combination of payment features and marketing features, they hold tremendous potential,” added Vincent Berge, the Chairman of Think&Go NFC. “The power of Ingenico Group will enable us to accelerate uptake of connected screens and deliver seamless, matchless solutions to our customers.” The acquisition has allowed Think&Go NFC to increase its projected number of connected screens deployed over the next three years by 2,000 per cent, by drawing on Ingenico Group’s sophisticated research and development capabilities as well as their global network.
Red carpet Canadian debut at TIFF Following the acquisition of Think&Go NFC, Ingenico was looking for the perfect opportunity to share this technology with the Canadian market. “The idea of doing TIFF came up in a meeting in February and TIFF was September 6th,” explains Suzan Denoncourt, Ingenico’s managing director, Canada. “So that was less than seven months to crank out a net-new solution in the Canadian market—and the Canadian market is not an easy one to put something out.” They partnered with Visa to give festival goers the chance to experience the connected screen by making a two or five dollar donation to the TIFF Pocket Fund, an organization focused on ensuring every young person has access to TIFF’s educational programming regardless of financial status. All that it took was waving a Visa payWave-enabled credit card or device in front of the screen. “In this day in age, it is almost impossible to impress somebody,” observes Ingenico’s VP Strategic Development Chris Tyghe, “people are used to having really cool digital experiences.” That’s why the enthusiastic response from the public and payment industry experts alike at the TIFF event was all the reassurance Tyghe needed to know they were on the right track with the connected screens. Denoncourt notes that as a dominant enterprise facing pressure from FinTech, Ingenico is focused on fostering a culture of innovation. The challenge of preparing for the TIFF event with an interdepartmental team doing something completely new and outside of their usual comfort zone was invigorating for a company accustomed to a dominant position in the marketplace. Tyghe, who before joining Ingenico in January 2016 had exclusively worked at start-ups, was impressed by the team’s response. “People JAnuary/February 2017
Digital disruption: Integrating business mobility in financial services By Michael Murphy
here’s no doubt that an industry disruption is shaking up the financial services space and the digital transformation is in the eye of the storm. Gone are the days of customers walking into their local banking branch to deposit cheques or pay bills. Instead, more customers are opting for the convenience of digital channels as a means of gathering information, sourcing opinions and completing their transaction immediately. According to a recent report commissioned by Citrix, Moving at the Speed of Byte: Ushering the Era of the Digitally Enabled Financial Institution, customers increasingly prefer digital methods to check balances or pay bills, with a 10 per cent increase in customers using mobile channels and almost 20 per cent decrease in ATM transactions from 2013 to 2015. In the insurance industry, customers using digital channels to complete insurance transactions have also increased from 28 per cent in 2010 to 41 per cent in 2015. But, this shift goes beyond the customer level. Technology has become a point of connection between employees and their customer, and yet only 15 per cent of financial services institutions use digital channels to connect their business, employees and customers. As business leaders remain under pressure to increase revenue, provide exceptional customer service and maintain relevance, they also need to do more to adapt to their employees’ evolving use of technology.
Enter, business mobility Time and again, research has proven that mobility encourages productivity, increases employee retention and drives business growth—a win-win for all if enterprise mobility initiatives are implemented correctly. The modern work environment is more interconnected and mobile than ever before. Employees are collaborating with external partners, travelling more and work isn’t always taking place between the hours of nine and five. Today, nearly all employees have embraced mobility in one way or 8
another and companies recognize this. Many now provide employees with corporate devices or have implemented a Bring Your Own Device (BYOD) policy. But as mobility continues to spread, it becomes increasingly important that organizations provide employees with the correct tools that allow them to access data from wherever they are, whenever they need to. When the right IT infrastructure is implemented, mobility enables employees to connect to their desktop and files from anywhere, at any time, with any device. For example, Citrix’s XenApp and XenDesktop centralizes the management and delivery of Windows applications and desktops so employees like brokers, advisors, tellers and executives can securely access every file or resource they need to do their job. For IT departments—who are the linchpin to the digital experience of customers and employees—this means needing to move fast and yet be agile in their technology deployments, without compromising security and compliance requirements. In order to successfully embrace a digital transformation that brings customers and employees together on the same platform, financial IT executives need to overcome three obstacles:
Existing legacy IT infrastructure Nearly one-third of financial institutions currently deploy IT infrastructure on premise and self manage the technologies; however many of these technologies and apps are legacy systems. Combined with regular company mergers and acquisitions taking place in the industry, many financial institutions run into flexibility and scalability issues when looking to introduce new technologies.
Device diversity With the ability to access networks outside of the physical workspace on any consumer device, organizations are often faced with the challenge of maintaining a secure mobile environment which can Continued on page 19 January/February 2017
How digital wallets are transforming the payment experience By Jason Davies
he way Canadians shop is changing. Now, more than ever, Canadians are choosing their phones and tablets to go online rather than their computers and the scales are tipping toward a higher volume of online transactions in the retail space. According to a Moneris prediction, by 2030 only 10 per cent of money spent in Canada will be made via cash purchases. This shift is thanks in part to the growing popularity of digital wallets that allow customers to complete payments with ease. Not only are digital wallets bridging the gap between the physical and digital world, they are transforming the entire customer experience because of their convenience and security. A recent study from Mastercard Canada revealed 92 per cent of Canadian parents indicated they are looking to get time back in their day. The old-fashioned way of movie-going is rushing to the theatre to line up for tickets. Or meal delivery: Ordering pizza over the phone and rummaging through wallets for enough cash to pay the driver when the food arrives. These experiences highlight the challenge of older payment methods. They eat up time that could be better spent. Modern solutions like Mastercard’s Masterpass help to give precious time back to parents so they can make the family trip to the movies or enjoy a less frenzied experience when ordering food. Because digital wallets store debit, credit, prepaid cards and shipping information, they offer the ability to turn checkout into a one-step process. Payment information is stored digitally through the process of tokenization so shoppers experience the same level of security validation they experience with a POS transaction. As digital wallets gain traction, the one-step payment process will become ubiquitous. Customers will pay the same way each time because it’s predictable and secure, opening up new shopping experiences and leading to new behaviours for Canadians in the marketplace. Digital wallets combined with quality apps have the power to cross over and make the in-store shopping experience better, offering enhanced experiences consumers previously didn’t even think were possible. Take eating out at a restaurant for example. JAnuary/February 2017
Most people sit patiently for the server to bring the bill, perhaps waving or pretending to sign a cheque in the air before the server catches on. What if customers could see their bill in real time and pay when they’re ready, instead of waiting on their server? Even splitting the bill with a friend becomes much easier when customers are in the driver’s seat through apps and digital wallets. This is a reality for guests of The Cheesecake Factory restaurants south of the border through the mobile payment app CakePay. Digital payment solutions like CakePay are an extension of the dining experience. Not to mention, this also opens up time for servers to cater to customer’s unique dining needs. And it’s very simple to use. Guests check in at a given location and the app generates a fourdigit code they can track from their phone. When ready to leave, customers have the option to split the bill before checking out without any waiting. The same goes for the UK’s Wagamama restaurant. The Qkr! by Mastercard app allows guests to pay whenever they choose. Not only does this make the dining experience better for customers, it cuts out more than 10 minutes of a non-value-add activity for servers who could better use their time in other ways. Another example that’s changing the way Canadians are making payments is Honk Mobile, an app that allows users to pay for parking through their mobile phones. Within seconds, users have the ability to add time to the parking meter and pay. Parking enforcement is able to see a list of license plates from users who have paid, helping people to avoid the cost and inconvenience of parking tickets. Retail shopping is also improved. Imagine a shopper finds a dress in-store that is perfect but the colour isn’t right. In many cases, store staff would probably offer to hold it at another location, prompting customers to either venture across the city, buy a colour that isn’t right or simply give up. This new era allows shoppers to use the retailer’s app to scan the item, select the correct colour, pay for it and have it shipped to their address. When they’re done right, new apps combined with the power and security of digital wallets can fulfill the promise of a transformed shopping experience. Jason Davies is vice president and head of digital payments at Mastercard Canada.
Why holistic purchaseto-pay automation is a game changer By Eric Wilson
one are the days of a clunky, manual, timeconsuming purchase-to-pay environment. The challenges of poor visibility and control, inflexible workflows and ineffectiveness, which plagued back-office functions like Accounts Payable (AP), Procurement, Accounting and Treasury, as well as suppliers, are being met head-on by advanced, disruptive technology. Not only is technology making purchase-to-pay more efficient, but these solutions are also making it possible to extract value from the buying process with a holistic approach to purchase-to-pay, transforming cost centres into profit centres.
Inefficiency and ineffectiveness For years, companies have been relying on paper-based manual processes to handle purchase-to-pay operations. Procurement has been fighting an uphill battle to encourage users to buy from preferred suppliers while quickly getting employees the items they need to do their jobs. AP has been trying to keep up with mounds of paper invoices and inefficient workflows. Too often, it resulted in lost or missing invoices, late payments and penalties, and strained relationships with suppliers. And, a lack of communication between functions resulted in duplication of effort and missed opportunities for financial gain. In addition to inefficiency, one of the most detrimental aspects of manual processes is the lack of access to important, real-time transactional data that makes it possible for Procurement and Finance teams to make informed decisions and be more strategic. Many organizations have been flying blind. They haven’t, for example, had a quick or easy way to know the status of invoices at any moment in time, how much business they are doing with specific suppliers, how much spend is on-contract or what their outstanding liabilities are. Without this insight, Procurement is at a disadvantage for managing spend, and AP can’t effectively track invoices. In addition to these issues, manual processes make it difficult for Accounting to conduct accurate, fast closes or for Treasury to manage working capital; however, advances in purchase-to-pay technology have created a breakthrough, solving these problems and changing the 10
way companies buy and sell with an end-to-end approach to the automation of financial processes. For example, by automating the purchasing process, Procurement captures and manages more spend, allowing it to consolidate the supplier base, leverage volume buying, negotiate more favourable contracts and build stronger, mutually beneficial relationships with suppliers. With automation, AP benefits from a high level of matching invoices against purchase orders, contracts, goods received and more, for straight-through processing without any human intervention. By automating more processes across the buying cycle, organizations benefit from critical visibility into the aggregated, financial data collected in the system, efficiency from streamlined workflows and collaboration across departments—ultimately enabling companies to be smarter about how they spend money, reduce risk and generate working capital to fuel other strategic initiatives. Holistic purchase-to-pay is empowering Procurement and Finance teams to operate more strategically and contribute to a company’s overall growth. Following are some exciting developments that purchase-to-pay professionals are realizing: • Networked purchase-to-pay automation provides visibility across finance operations, enabling companies to go beyond simple cost savings. These systems collect valuable information on purchases and payments, suppliers and other data that is critical for optimizing cash flow and generating revenue from the process with activities, such as leveraging volume buying, participating in strategic payment programs and capturing early payment discounts. Additionally, this visibility helps organizations keep suppliers informed on the status of payments. This saves significant time for finance teams by not having to field questions about when invoices will be paid and fosters collaboration between buyers and suppliers. • Easy-to-use dashboard analytics and real-time reporting enable fast access to critical finance information, which can be leveraged across Procurement, AP, travel and expense reporting, inventory management, asset management and payments. Users can drill down from high-level graphical dashboards into real time transactional details, making it easier for the organization to be proactive, pivot one way or another and take advantage of January/February 2017
Industry Disruptors strategic financial opportunities. Users can more easily determine root causes of inefficiency, identify bottlenecks in the supply chain, optimize processes, detect fraud and more. Analytics empower organizations to improve cash-to-cash conversion cycles and days payment outstanding (DPOs) to optimize working capital. • More user-friendly, intuitive procurement systems are increasing user adoption, providing employees with the information they need to make the best buying decisions in the natural course of their daily work life and making it easy to purchase from online catalogs of items from preferred suppliers on pre-negotiated contracts. In addition, savvy procurement organizations are adopting a new collaborative style of purchasing that transforms an organization’s buying culture, encouraging everyone to work together toward company goals, such as use of sustainable products and rewarding desired behaviors. Together, advanced procurement systems and a collaborative procurement culture enable greater spend under management, smarter spending, on-time payments, more effective inventory management, significant cost savings, reduced risk and optimized processes. • The rise of business commerce networks is enhancing supply chain collaboration and e-commerce. By delivering a platform for companies to instantly connect with trading partners across
the globe and conduct invoice and purchase order transactions in real-time, these B2B ecosystems increase the speed of business and enable new payment options and online financing. For example, innovative e-payment solutions for businesses are speeding up settlement by enabling immediate, electronic payment once an invoice is approved and online trade financing solutions are alleviating suppliers’ dependency on buyers for cash flow. By enabling both buyers and suppliers to optimize their cash and working capital, these financing solutions are transforming the one-sided payment relationship that had favored the buyer for so long, to a mutually beneficial B2B commerce experience. And there’s more to come. Many current technology advances are based on Robotic Process Automation, using software “robots” to perform tasks based on programmed rules. As we look ahead, technology providers are adding more artificial intelligence (AI) and machine learning capabilities into their solutions, allowing businesses to incorporate smart capabilities into their financial business processes. For example, organizations will be able to more intelligently leverage the data on buyers and suppliers from the millions of transactions conducted on business networks to identify
May 24-26, 2017 Westin Harbour Castle Toronto, ON
Continued on page 19
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Mobile payments gaining ground in Canada Need for fast, flexible and secure payments system drives modernization in Canada By Anne Butler
hile Canadians continue to rely heavily on cheques and cash, Payments Canada research has revealed that online and mobile payments are becoming a growing share of the Canadian market. Payments Canada’s flagship publication, the Canadian Payment Methods and Trends (CPMT) report, showed that online transfers are the fastest growing payment method in the country, reaching an estimated 120 million transactions worth $45 billion in 2015. While online transfers still represent only a small portion of the payments landscape, the annual growth rate of 43 per cent per year illustrates a transition that is underway in the payments ecosystem. For now, however, the research shows that cash continues to account for the greatest transaction volume, at 32 per cent of all payments. That said, since 2011 cash use has declined by 20 per cent. The downward trend in cash use is expected to continue in the future as more and more Canadians opt for electronic payments to make their daily purchases and when paying other individuals. In 2015, cheques remained a popular payment method, with the value of those cheques—buoyed by continued use by Canadian commercial enterprises—growing by more than two per cent on average each year. However, the CPMT report showed that cheque volume continues to decline, dropping 25 per cent between 2011 and 2015. In 2015, 475 million fewer cheques were written compared to 2008. Much of that decline can be attributed to consumer adoption of online transfers and electronic funds transfers (EFT). Business use of EFT is also on the rise, but there is still room for growth—with an estimated more than 600 million cheques written by businesses in 2015. For the first time since Payments Canada began to research payments methods and trends in 2008, debit card use outpaced debit card volume, largely due to the rapid adoption by consumers of tapping their debit cards for transactions. Consumer demands for speed, convenience and rewards are driving many of the payment trends at merchant locations, including growing credit card and contactless use (tapping your payment card or mobile device to pay). In 2015, contactless payments grew by 70 per cent in both volume 12
and value of transactions. The 2015 data also showed how electronic payments are thriving in new payment channels, such as e-wallets and e-commerce. Another interesting finding was that in 2015, prepaid payment methods, such as prepaid cards already loaded with funds or inapp purchases, were the highest ever observed in Payments Canada research but still account for a small amount of volume and value for merchant purchases. The CPMT report is an important window into the future of payments technology in the Canadian financial market, one that grew last year to a total of 20.9 billion consumer and business transactions worth $8.9 trillion. The CPMT findings reinforce the need for Canada to modernize and adapt its systems to respond to the changing global payments ecosystem. Payment Canada’s large value transfer system, which cleared and settled nearly $43 trillion, or $171 billion every business day in 2015, performs well in a static environment but the aging technology will need significant changes to support the evolution of other payment systems. While Canada is still in the early stages of its modernization work, changes to core payment systems will undoubtedly have an impact on the payment methods and trends observed in Canada. The improvements to Canada’s payments systems will create a platform for innovation to enable new and exciting ways for Canadians and Canadian businesses to pay for goods and services, transfer money and exchange data about their payments. In 2016, Payments Canada heard during a public consultation on the future of payments in Canada that there is a need for more data travelling with payments, easier addressability, transparency in payments tracking and support for future innovation. The availability of ISO 20022 messaging standards—a core element of the modernization plan—will enable more data to move with payments and will likely contribute materially to the movement away from cheques to electronic payment methods. In December, Payments Canada released the Modernization Industry Roadmap and High-Level Plan to tell Canadians about its Continued on page 19
ISSUES & EDITORIAL THEMES
Key theme: Industry disruptors —In the world of payments, the only constant is change
Key theme: International payments—Shrinking the globe one payment at a time
Key theme: Data analytics— Harnessing descriptive, predictive and prescriptive analytics
Vendor roundtable: Alternative e-payment solutions
Vendor roundtable: Issuers
Vendor roundtable: Payment processors
Market report: Restaurants & foodservices
Market report: Events & entertainment
Market report: Travel, transportation & hospitality
Hardware report: ATMs & ABMs
Hardware report: POS & mPOS
Pay channel: Cash & cheques
Pay channel: Cards
Pay channel: Mobile
Editorial deadline: January 6th
Editorial deadline: March 3rd
Editorial deadline: May 5th
Issue July/August Key theme: Security, fraud & privacy—protecting payments from dynamic international threats
Hardware report: Smartphones
Key theme: The mobile wallet— the power of payments in the palm of your hand
Key theme: 2018 payments forecast—Industry leaders share their vision for the future
Vendor roundtable: Printers
Vendor roundtable: Loyalty & points programs
Vendor roundtable: Acquirers
Market report: Online retail
Market report: FinTech
Hardware report: Wearables
Hardware report: Cash & cheque handling equipment
Pay channel: Wire & EFT Editorial deadline: July 7th
Pay channel: Alternative currency Editorial deadline: September 1st
Market report: B2B Hardware report: EMV card technology Pay channel: Points & rewards Editorial deadline: November 3rd
Payments Business is your partner in leveraging editorial opportunities. We can facilitate your advertising needs, as well as developing online campaigns, editorial roundtables, and more. Phone: 905-201-6600 • Toll Free: 1-800-668-1838 • www.paymentsbusiness.com
Restaurants & foodservice Sionic Mobile’s m-commerce platform now connects directly with Oracle MICROS Point-of-Sale High-volume eateries throughout the Hartsfield-Jackson Atlanta International Airport pilot fully integrated mobile-to-POS solution; restaurants can now connect with millions of Mobile Rewards App users, process faster, more secure mobile payments and instantly reward guests
November, 2016 -- Just in time for the busy holiday travel season, Sionic Mobile has announced the integrated release of its awardwinning ION Commerce Engine (ICE) with Oracle Hospitality MICROS POS solution. The integration provides a cardless, threedigit checkout experience, enabling restaurants to quickly and securely process mobile payments, instantly reward guests and connect with millions of Mobile Rewards App users. Airport restaurateur Hojeij Branded Foods (HBF) is one of the leading and fastest growing operators of food and beverage concessions in U.S.-based airports, with a portfolio of popular brands ranging from Arby’s and Chick-fil-A to Cat Cora’s Kitchen and P.F. Chang’s. Enabled by leading POS-provider Postec, Inc., HBF is among the first to pilot the new, fully integrated ICE-MICROS solution in select Hartsfield-Jackson Atlanta International Airport restaurants. In the coming weeks, the company will be expanding the integrated service to other restaurants, POS systems and airport locations nationwide. “We’re continually looking for ways to improve our guest experience,” said Regynald Washington, CEO of HBF, operating 40 brands with 73 locations in 14 airports. “Accepting digital payments from millions of Mobile Rewards App users then thanking them
instantly in their preferred miles, points or other rewards is very appealing.” Immediately following a successful mobile, three-digit checkout, guests using the Mobile Rewards App receive instant rewards in their rewards currency of choice. As one of the only truly universal rewards programs, users can earn and spend rewards at any of the more than 100,000 retail and restaurant locations comprising the Mobile Rewards Marketplace. Postec, Inc. President, Mike Seymour, said, “We had a swift and lightweight experience integrating Sionic Mobile’s ICE with the Oracle MICROS POS system. We’re pleased to support HBF’s desire for faster and safer mobile payments at their airport locations and look forward to offering the Mobile Rewards Marketplace opportunity to our other, non-airport customers as well.” Sionic Mobile’s cloud-based ICE payment and loyalty platform powers multiple mobile pay and loyalty apps, reaching more than 150 million consumers. The company’s extensive GeoSense beacon network drives merchant awareness and more frequent app usage. The platform is integrated with popular payment terminals and POS systems for enterprise clients, supporting mobile payments from most any iOS or Android device and any bank-issued credit or debit card. Ronald Herman, CEO and founder of Sionic Mobile, said, “Restaurants, especially airport eateries, must be able to quickly serve guests, but still provide an exceptional service experience. Integrating our ICE platform directly with Oracle MICROS not only provides lightning-fast mobile payments processed by J.P. Morgan Chase, but also leverages our proven security and fraud prevention tools. We’ve designed this new solution to be the fastest digital checkout in the market while rewarding guests instantly, which encourages repeat business and builds brand loyalty even in an airport environment. We look forward to working with the teams at Postec, Inc. and HBF as we bring these latest innovations to restaurants throughout the airport and traveler rewards ecosystem.”
YO! Sushi rolls out new restaurant technology with NCR
Proven NCR cloud and hardware solutions are enabling growth and increasing profitability for popular international Japanese fast food restaurant brand November, 2016 -- YO! Sushi, the UK’s wildly popular international Japanese fast food restaurant brand, has completed the roll out of a new restaurant technology solution with NCR Corporation, a global leader in omnichannel solutions. YO! Sushi, which operates 91 restaurants including 71 in the UK, six in the U.S. and 15 franchised across the world, sought to upgrade its existing system to achieve greater efficiency, business intelligence and operational control across the business. In partnering with NCR, YO! Sushi was confident in the reliability and scalability of NCR’s best-in-class software, hardware and services including the NCR Aloha point-of-sale (POS) solution. In addition, YO! Sushi is using the NCR Insight and NCR Pulse applications to support business intelligence and drive efficiency across the business by enabling the management team to see exactly what is going on across its portfolio in real time and via a smartphone app. As well as implementing NCR fixed POS solutions, YO! Sushi is also rolling out NCR Orderman handheld devices enabling mobile POS across stores where wifi connectivity is a challenge. NCR’s omnichannel technology solutions help restaurants to simplify day-to-day operations, leverage business and customer intelligence to make informed decisions and improve the customer experience. “The insight tools that NCR are able to offer are a real game changer. It has never been possible to have such an array of data at your fingertips—and the fact that it’s in real time means that you can know exactly what is going on,” says YO! Sushi chief executive, Robin Rowland. “The UK’s hospitality industry is seeing a seismic shift in consumer attitudes and this is having a significant impact on businesses, changing our servicing requirements. The likes of Deliveroo and UberEATS mean everyone expects you to be online and offering a seamless operation—working with NCR is a vital part in being able to be at the forefront of this transformation,” adds Rowland. “Fast growing restaurant brands, such as YO! Sushi, are focused on delivering an exceptional customer experience, increasing profitability and growing their businesses,” adds Richard Goodall at NCR Hospitality. “Our technology platform can help restaurants improve speed of service, employee productivity and customer spend, resulting in higher profits, increased loyalty and satisfied, happy guests.” YO! Sushi opened its first Japanese "kaiten", or conveyor belt-style, fast-casual sushi restaurant in London in 1997. Since then, YO! Sushi has grown from a London-only sushi brand to 91 locations worldwide, including locations in the United Kingdom, United States, Ireland, Norway, Denmark, Saudi Arabia and United Arab Emirates.
The Cheesecake Factory selects MyCheck for its new mobile app solution CakePay, powered by MyCheck, allows guests to view, split and pay their cheque straight from their smartphone, providing a unique experience in the restaurant
March, 2016 -- The Cheesecake Factory has selected MyCheck as the mobile payment platform provider for its new mobile payment app called CakePay. The app will begin rolling out nationwide this April. "The hospitality industry is undergoing massive technological change and is looking towards mobile as a new way to engage their guests. However, doing so in a way that preserves brand equity and ensures operational integrity in a full-service restaurant environment is not so simple," said Tal Zvi Nathanel, U.S. CEO of MyCheck. "From day one, it has been our mission, through a variety of third-party integrations and a keen focus on the user experience, to ensure that mobile payment is seamless and easy for all the stakeholders involved. We are honoured that The Cheesecake Factory has chosen us as their solution provider for this forward-looking initiative." "We have been working closely with MyCheck over the last year to ensure that our guests' mobile payment experience is an extension of the overall Cheesecake Factory experience, and we are very pleased with the results," said David Gordon, president of The Cheesecake Factory Incorporated. "CakePay has been available in a few of our restaurant locations since last year and has been well received by our guests and staff alike. We are very pleased to offer our guests the convenience of being able to pay from their smartphones." From the guest perspective, CakePay works as follows: 1. The guest checks-in to a location. 2. A four digit code is generated and is given to the server at the time the order is taken. The server enters the order into the Point of Sale system along with the four-digit code. 3. The guests can view their running check on their smartphone. 4. When the guest is ready to leave, they can select whether to split the bill with another guest, either by paying for a specific item or splitting it evenly, and then checkout without waiting for the printed check or the credit card slip. A survey option is provided at the end and the guest receives an electronic receipt. The CakePay app incorporates MyCheck's PCI DSS Level 1-compliant mobile payment technology and integrates with The Cheesecake Factory's Positouch point of sale system and credit card processor. Users can link multiple payment methods to their CakePay account, including credit cards, debit cards, Apple Pay and PayPal. The CakePay app is available for free download at the Apple App Store and Google Play.
ATMs & ABMs
The 50th anniversary of the ATM Celebrating the Scottish invention that goes on giving By Curt Binns
he 50th anniversary of the installation of the first ATM is fast approaching—June, 27 2017 is that landmark date. That first installation featured a machine created by a team headed by my fellow Scot, John Shepherd-Barron. Other teams, in Scotland and elsewhere, were working on similar machines but Shepherd-Barron reached the installation finishing line first. He will be recognized for this achievement for all time. Another Scot, James Goodfellow, who saw the style of ATM he created installed for the first time later in 1967, also invented the Personal Identification Number (PIN). Of course, the ATM is only one in a long line of inventions brought to the world by my remarkably creative countrymen. Long before that first ATM appeared at a branch of Barclays Bank, Scottish innovations had helped changed our lives for good and— mostly—for the better. The list is jaw-droppingly impressive: • The television: John Logie Baird (1923) • The refrigerator: William Cullen (1748) • The first electric bread toaster: Alan MacMasters (1893) • The flush toilet: Alexander Cumming (1775) • The vacuum flask: Sir James Dewar (1892) • The first mechanically-propelled, two-wheeled bicycle: Kirkpatrick MacMillan (1839) • Penicillin, the first true antibiotic: Professor Alexander Fleming (1928) • The telephone: Alexander Graham Bell (1876) • Smooth, hard roads: John McAdam (1816) • Whisky: John Cor (1494) • Introduced soccer to Brazil: Thomas Donohoe (1894) All of this from a country that, even today, only has a population of around five million people. Scotland certainly punches massively above its weight in terms of the contribution Scots have made to improving the quality of life of the whole human race. The creative Scots do not, of course, rest on their laurels. There is a thirst in Scotland that can't be satisfied by mere whisky; Scots still have an unquenchable desire to invent! And now, back to soon-to-be marvellous ATMs! As is the case with many inventions, it is difficult to sort out the facts from the folklore surrounding the genesis of the ATM. For example, there is a lovely story that John Shepherd-Barron's enjoyment of a hot bath one evening was being ruined because he was concerned that the limited opening hours of his local bank 16
branch might make it difficult for him to obtain cash the next day. What better place than a bath to have a Eureka moment? Yes, as he almost literally worked himself into a lather, John came up with the idea that would make a great splash. It would ultimately make a fundamental change to how billions of people access cash. Back in 1967, this was still all a long way off. The machines John Shepherd-Barron imagined during his bath time were only intended to support the cash needs of those who could not get to their local bank branches during their rather limited opening hours. In 1967, bank customers really only had a relationship with only one bank branch and one ATM. It wasn't until ATMs started to be networked in the 1970s that they became a truly convenient way of accessing cash. All you needed then was a plastic card plus a PIN number. So armed, you could go to any of your own bank's ATMs to get the vital cash you needed to live your life every day. In those days, most people used only cash for retail purchases, so this new convenient access was a transformative innovation. From that point on, the true potential of ATMs began to be realized. The 1980s and 90s saw both the growth of national networks and the internationalization of the service. A good example of these developments comes from the UK, the birthplace of the ATM. By the late 1990s, 99.9 per cent of the UK’s ATMs were connected through the LINK national network and the cards used for access to those ATMs, suitably adorned with an international card scheme logo, could be used at ATMs in around 200 countries. And, of course, innovation in the wonderful world of ATMs has gathered further pace. Today, there are ATMs where customers can do much more than "cash & dash." In some countries, over 100 transactions are available to satisfy the needs of ATM users. This trend is set to continue. The future is one where ATMs will be at the heart of meeting the financial services needs of almost everyone on the planet, helping make truly universal financial inclusion a reality. Bring on that marvelous future! P.C. (Curt) Binns is the executive director of the ATMIA. Prior to joining the ATMIA Curt was an independent consultant in large firms within the financial service sector, mainly providing outsourced services for major banks. Prior to consulting Curt spent 30 years working for major foreign owned banks in senior management roles. His responsibilities included both retail delivery and operations. Curt worked in several provinces of Canada from East to West Coast. His previous employers have sent him to places such as Hong Kong and India to seek out opportunities for expansion.
ATMs & ABMs
Canada's first ski-thru ATM opens atop Whistler Blackcomb January 2017 -- What stands 8.5 feet high, weighs 4676 pounds and is located 1,850m (6,069ft) above sea level? Complete with ski pole and glove holders and heating lamps, CIBC has opened the first-ofits-kind mountain-top ski-thru ATM outside the Roundhouse Lodge on Whistler Mountain. Canada's first ski-thru ATM is one of many experiences CIBC will offer as part of a brand new, five-year partnership with Whistler Blackcomb. "We're thrilled to partner with North America's premier resort to offer even greater experiences for all who enjoy its beauty and worldclass amenities," says Stephen Forbes, chief commercial officer, CIBC. "CIBC is always looking to improve our clients' experience, whether in a banking centre or on the slopes, and our new ski-thru ATM at Whistler Blackcomb is just one of the many ways we're reaching clients at new heights." The new stand-alone ATM allows skiers easy access to cash for things like making purchases at certain cashonly vendors before journeying back down the slopes, and offers the same range of banking services available at all CIBC ATMs. To reach clients at the peak, the ATM made a momentous trek up the mountainside to the summit of Whistler Mountain. Bringing the partnership to life, CIBC is working alongside Whistler Blackcomb to deliver world class hospitality at the resort's two Guest Satisfaction Centresâ€”the heart of activity for inquiring guests. To further amp up the visitor experience, CIBC is also offering whistles, tissues and hand warmers as part of Whistler Blackcomb's free mountain orientation tours. Visitors will also experience unique CIBC activations on CIBC National Ski Day, Family Day and Canada Day to help celebrate Canada and CIBC's shared 150th birthday in 2017. "We are very excited to be celebrating the launch of our new corporate partnership with CIBC," says Morag Kerr, strategic alliances and partner marketing manager at Whistler Blackcomb. JAnuary/February 2017
"CIBC is Whistler Blackcomb's first ever full-service banking partner and their commitment to delivering exceptional guest experiences aligns perfectly with our goals. We look forward to working with CIBC to better service our guests in unique and exciting ways as we move forward." CIBC's ski-thru ATM will be active throughout the 2017 ski season.
ATMs & ABMs
ATMIA kicks off its 20th anniversary with welcome recognition from Wikipedia January 2017 -- Wikipedia, the world’s largest online encyclopaedia, has approved an entry for the ATM Industry Association at the beginning of the association’s 20th year. “This entry in Wikipedia is a fitting way to mark ATMIA’s two decades of history-making work,” commented ATMIA’s Founding Director Tom Harper, who is president and CEO of Networld Media Group. “Kudos to Mike Lee, his staff and so many others that have made the association such a critical driver of the ATM industry.” Co-author with Harper of Cash Box: The Invention and Globalization of the ATM, Professor Bernardo Batiz-Lazo, the world’s leading ATM historian, explained the significance of this acknowledgement by Wikipedia: "The wiki entry corroborates the ATM Industry Association's reputation and its successes in proactively representing its members' interests across the globe through its first 20 years of existence." “What a way to kick-start our anniversary!” added Mike Lee, CEO of ATMIA. “Our ongoing public and industry role has been recognized by an important voice of authority.”
For breaking news and in-depth features, visit our website at www.paymentsbusiness.ca
Turns Digital disruption: Integrating business mobility in financial services
Mobile payments gaining ground in Canada
Continued from page 8
Continued from page 12
be threatened by both consumer-facing and employee-facing applications.
far-reaching plans to modernize the payments infrastructure and rules to create a platform for innovation. The changes to Canada’s payments systems are expected to be implemented over the next three to four years.
Network security issues: Cybersecurity attacks (e.g. hacking, DDoS, data breaches) have been on an upward trend. Financial institutions continue to receive the blame for these breaches causing significant implications to their business—damaging customer confidence, costing millions of dollars in fines and remediation and loss in revenue. Technology, such as scalable network infrastructure, virtualization and secure file sharing solutions, can help financial services organizations overcome these types of challenges and allow them to integrate business mobility strategies while maintaining security and control. As the financial services industry continues down the path to embracing the digital transformation, its important that organizations build the foundation of their digital strategy on strong IT infrastructure and tailor their initiatives to meet the expectations of their employees and customers, alike. Michael Murphy is the vice-president and country manager of Citrix Canada (@CitrixCanada), a global company that enables mobile work styles, allowing people to work and collaborate from anywhere.
Why holistic purchase-to-pay automation is a game changer Continued from page 11
supplier risk or unveil new collaborative opportunities. Automation has transformed purchase-to-pay from a manual, time-consuming process to a streamlined buying cycle. Now, with holistic purchase-to-pay automation, companies can harness the entirety of financial operations to spend smarter, better manage capital, boost cash flow and leverage supply chain financing and strategic payment options. This enables companies to unlock value from their business processes, making the money they’re spending work for them. It’s no longer about simply saving money; it’s about creating a distinct competitive advantage through financial agility.
Anne Butler is vice-president with Payments Canada and is responsible for leading the research, policy, legal, corporate secretariat and compliance services and advising the board of directors and its committees. Anne received her LL.B from Queen's University in 1995 and was called to the Ontario Bar in 1997.
Breaching the last bastion of cash Continued from page 22
paying (or getting paid by) others that they don’t know personally. This technology also offers nano- and micro-merchants or service providers an inexpensive and mobile way to accept contactless, in-person payments from their customers. This removes the need to handle large amounts of cash or subscribe to costly external hardware solutions. For charities and fundraising organizations, this solution would provide a means to address the impact of a transition to a more cashless society. Groups that rely on spontaneous, face-to-face donations would be able to securely and conveniently accept card payments without requiring the donor to sacrifice their personal or banking information, or their valuable time. Financial institutions who incorporate “cash-in-hand” digital payments into their banking apps and mobile wallets would offer a real added value to clients. Not only would it allow them to compete with the features offered by third-party services, but provide a means to tap into the significant market of cash transactions. For years the payment space has becoming increasingly more digital, but in doing so, the industry has created this divide where most do not have cash on them despite many valuable reasons to do so. The ability to provide a digital alternative for cash-in-hand payments is the necessary step forward to close this gap for both banks and consumers. Vincent Alimi is vice-president, product & innovation at Mobeewave. A results-driven business and technology executive with 13 years’ experience in the digital payment industry, Vincent is an expert in mobile architecture and ecosystems, EMV, mPOS architecture and ecosystems, embedded applications, as well as contact, contactless and mobile payment. He has a Ph.D. in digital payment.
Eric Wilson is VP of purchase-to-pay for Basware, a leading provider of networked purchase-to-pay solutions, e-invoicing and financing services that enable organizations around the world to grow their businesses and unlock value across their operations. For more information, contact firstname.lastname@example.org, 704.602.3379.
2017 Industry Events
January January 15-17 National Retail Federation Retail’s Big Show 2017 New York, NY nrfbigshow.nrf.com January 29 – February 1 Retail Solutions Providers Association INSPIRE 2017 St. Kitts, West Indies gorspa.org/event/inspire January 30-31 American Conference Institute 17th National Forum on Prepaid Card Compliance Washington, DC AmericanConference.com/ PrepaidCard
February February 8-9 InfoTech Canadian Financing Forum 2017 Vancouver, BC financingforum.com February 14-16 ATMIA ATMIA US Conference 2017 Orlando, FL atmia.com February 22 – March 2 WB Research eTail West 2017 Palm Springs, CA etailwest.wbresearch.com February 22 – March 2 GSMA Mobile World Congress Barcelona, Spain mobileworldcongress.com
March March 27-30 ICMA 2017 Card Manufacturing & Personalization EXPO Orlando, FL icma.com
March 27-30 Smart Card Alliance Payments Summit Orlando, FL scapayments.com March 27-28 U.S. Payments Forum All Member Meeting Orlando, FL uspaymentsforum.org
April April TBD Payments eXchange Payments Awards 2017 Toronto, ON www.paymentseXchange.ca April 10-13 NAPCP Commercial Card and Payment Conference Houston, TX napcp.org April 13-14 Conference Board of Canada Canadian Privacy Summit 2017 Toronto, ON conferenceboard.ca April 23-26 NACHA Faster Payments 2017 Austin, TX payments.nacha.org/what-ispayments April 26-27 Central 1 2017 Conference and Trade Show TBD central1.com April 26-27 Finovate FinovateSpring 2017 San Jose, CA spring2017.finovate.com April 28 Central 1 Annual General Meeting TBD central1.com
May May TBD Payments Canada 2017 Payments Panorama Toronto, ON payments.ca May 1-3 ACT Canada Cardware 2017 Niagara Falls, ON cardware.ca May 10-12 Electronic Transactions Association TRANSACT Las Vegas, NV etatrasact.com May 16-19 WB Research eTail Canada Toronto, ON etailcanada.wbresearch.com
June June 6-9 Internet Retailer Conference + Exhibition Chicago, IL irce.com June 14-16 FEI Canada 2017 Annual Conference Whistler, BC feicanada.org/2017/Annual/ Conference June 28-29 InsuranceNexus 3rd Annual Insurance Analytics Canada Summit Toronto, ON events.insurancenexus.com/ canada
August August 22-23 The Prepaid Press tppEXPO’17 Las Vegas, NV prepaidpressexpo.com
Visit us online www.paymentsbusiness.ca 20
September/October January/February 2016 2017
August 28-30 Mobile Payments Conference Chicago, IL mobilepaymentconference.com
September September 27-28 Western States Acquirers Association 2017 Conference Rancho Mirage, CA westernstatesacquirers.com
October October 4-5 BAI BAIBeacon17 Atlanta, GA bai.org/baibeacon October 12-14 CAMA EXPO 2017 Quebec City, QC vending-cama.com October 15-17 Association for Financial Professionals 2017 AFP Annual Conference San Diego, CA afponline.org October 16-19 Sibos Sibos 2017 TBD sibos.com October 22-25 Money20/20 Las Vegas, NV money2020.com
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Cash & Cheques
Breaching the last bastion of cash By Vincent Alimi
he emergence of technologies like contactless cards and mobile wallets has dramatically changed the payments space forever. These technologies have enabled customers to live increasingly cashless lives, particularly in more mature contactless markets like Canada, Australia and the UK. But while virtually every element of the payment chain is now served by various digital payment services, the need for cash has not been totally removed. There is one last sector that remains almost entirely dominated by cash: in-person, cash-in-hand transactions. That this segment, made up of both consumer-to-business (C2B) and consumer-to-consumer (C2C) payments, has not yet been digitized is surprising, especially considering the tremendous growth of the mobile payment industry. While recent estimates predict that the mobile payment market will be worth $780 billion in 2017 and reach $3.39 trillion by 2022, the FinTech revolution has so far left the sector of in-person, cash transactions largely untapped.
Defining P2P transactions As a part of the payment landscape, in-person cash transactions represent a variety of activities. They cover peer-to-peer (P2P) transactions like friends splitting the bill at a restaurant, housemates sharing the rent or co-workers chipping in on a group gift. They include service providers or micro-merchants like accountants, landscapers or tutors. P2P transactions also represent informal sales, like a garage sale or transactions through Kijiji or Craigslist. They can even be activities outside of buyer-seller transactions—like donating at a charity event.
Underestimated market, unrealized potential Taken individually, in-person cash transactions are usually small. But collectively they represent a significant portion of the payment world. A 2016 study by the World Bank Group and the World Economic Forum focusing on the total value of micro, small and medium retailers’ transactions estimated that of $19 trillion of a total $34 trillion global transactions were cash or cheque transactions. Beyond retailer transactions, figures from Mastercard Advisors indicate that cash still accounts for roughly 85 per cent of consumer transactions globally. Together these figures highlight not only the size of this sector, but also the massive potential that exists for technologies that provide a digital alternative to in-person, cash transactions.
Existing digital alternatives There is currently a small selection of tools that serve as a digital alternative to cash-in-hand transactions. Addressing both P2P and micro-merchant transactions, they leverage mobile technology in order to meet the in-person nature of these kinds of payments. Interac e-Transfer: In the Canadian payment landscape, Interac e-Transfer provides a convenient and secure alternative to cash transactions. The technology allows any personal account holder in Canada to receive funds with a single click. Although a useful tool for P2P transfers, it’s less suited to buyer-seller transactions. Requiring micro-merchants and service providers to share their email address or phone number and agree upon a password with their customers and clients is impractical. It also forces the person receiving the payment to sacrifice their personal information in order to simply get paid, a growing concern in the digital payments space. P2P payment solutions: Mobile peer-to-peer payment solutions, such as those offered by Venmo and through Facebook Messenger, are another useful way to exchange funds. However, since they are closed-loop solutions both parties are required to be signed up to the same service or connected through a particular social media network. This makes them less of a practical alternative to cash for micro-merchants and service providers. mPOS: Mobile point of sale terminals, such as those provided by established financial institutions and payment technology companies, enable consumers to accept debit and credit card payment on the go. These services exist as a variety of external hardware solutions, including standalone, dongle and bluetooth devices. The additional cost associated with these devices means that they are often not a viable solution for covering P2P or micro-merchant transactions. Mobeewave: Addressing both P2P and micro-merchant scenarios, Mobeewave has developed a white label solution for banks that allows users to accept money in person using just their smartphones. Leveraging a smartphone’s Near Field Communication (NFC) capability and secure element, the open-loop technology makes it possible for anyone to collect payment anywhere by simply tapping a phone with a contactless card or mobile wallet. However, as Mobeewave provides the technology as a white-label solution to financial institutions, it will only be available to clients of participating banks.
Explaining the benefits A range of groups would benefit from a viable digital alternative to cash-in-hand payments. Consumers benefit from a flexible means of Continued on page 19
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