Can Apple Pay sweeten the deal for small merchants to upgrade to EMV?

Small merchants are unclear on how to best approach EMV, but many report that they would be willing to deploy EMV terminals if they could also accept mobile payments including Apple Pay.  Are small merchants really looking for a BOGO (buy one, get one) when it comes to upgrading their terminals?  Buy a pair shoes and get the socks for free?  Could this be the way for merchant acquirers and ISOs to position terminal upgrades to their small biz clients?


Many small and micro businesses are looking to get a BOGO of EMV and Apple Pay when comes to terminal upgrades

Javelin just introduced its Small Business Banking service that focuses on needs and opportunities for banks, issuers, merchant acquirers to serve the small business sector.  Our most recent study of small ($1 to $10 million in sales) and micro merchants ($100K to $1 million in sales) ) shows that many of these merchants have not yet upgraded their payment terminals to accept EMV cards. Of these businesses, 36% would be motivated to do so if a terminal could both accept EMV and mobile payments.  When we looked only at the small merchant segment that number jumped to 45% – almost half.

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Intuit is Selling Quicken: Will Banks Seize the Moment?

Some will describe Intuit’s decision Thursday to sell Quicken as the end of an era. Quicken 2009The reality is the era of desktop do-it-yourself accounting software tapped out long ago. Fewer than 22 million U.S. consumers use desktop personal finance software like Quicken. I thought about charting Javelin’s longitudinal data on the usage, but it’s easier to instruct you to just draw a flat line.

The more pertinent question is who will inherit Quicken’s crown now that we’re in a mobile-first, manage-my-money-on-the-go era.

It should be banks and credit unions. In Read the rest of this entry »

Sticker Shock – EMV’s Educational Elephant in the Room

“Good morning, Mr. Biggins and welcome to Northern Citizens Bank and Trust Bank. How may I help you?”

“Hi, um, good morning. I’ve just got a new bank card in the mail and it’s got a sticker on it that won’t come off. Could you help me?”

“Certainly Mr. Biggins. What seems to be the trouble?”

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PayPal, Consumer’s Most Trusted Brand, Splits From Its Parent

PayPal andConsumer Trust

On Friday, PayPal’s split from eBay became official and today the firm started trading on the stock market as PYPL. As of noon, PayPal was valued over $50 billion. A key reason PayPal grew to such as massive size is that consumers trust PayPal to an unmatched level. Trust is essential for conducting financial transactions and PayPal is more trusted than any other member of the “Gang of Five,” which includes Amazon, Apple, Facebook or Google. For the past two years, PayPal has led Javelin’s TIP (trust-innovation-privacy) model, used for predicting success in mobile wallets. Now, with its recent acquisitions of Braintree, Venmo, Paydiant and Zoom, PayPal is building an armory of products and features to appeal to the “mobile first” consumer, which currently consists of 1 in every 4 bank customers. Now that PayPal is no longer handcuffed to eBay, the question becomes: can PayPal attract other platforms to adopt its service. PayPal holds the right cards, but this transition will be key for the company’s continued success.


Dear Fintech, Give People Meaningful Experiences, Not Gold Stars

At Finovate Spring, Moven demoed Bank 4.0. Moven is a reloadable debit card and mobile app. Just like Fitbit tracks your physical activity, Moven tracks your spending by category and will compare your current spending with your past spending behavior. It’s as if a prepaid card had a love child with Mint that grew up to be an older, more mature debit card that is able to track your money in real-time.  I’m not the first person to compare physical activity to financial activity but I think the comparison is really compelling. People are often just as wrong about their physical wellbeing as they are about their financial wellbeing. Early adopters of wearables have proved that the “internet of me” is an effective use of gamification and can significantly impact behavior. The formula is simple; linking users to their own behavior enables them to positively change their behavior. Read the rest of this entry »

A Hole in the Balloon Analogy: The Complex Evolution of Card Fraud in the US

As we discussed in MasterCard’s Security Matters, conventional wisdom indicates that card not present fraud will skyrocket as the United States shifts to EMV over the course of the next few years. Typically, this analysis is accompanied by analogies to balloons – as one end of the fraud “balloon” is squeezed, the rest expands. While this commentary correctly predicts the direction of Card Not Present (CNP) fraud, it mistakenly treats fraud as a homogenous mass and assumes that criminals can simply switch between different fraud types as the mood suits them. Point-of-sale (POS) card fraud and CNP fraud each have a notably different modus operandi and require different sets of skills, contributing along with other factors to an evolution of card fraud that will be more gradual in some respects and nuanced than many stakeholders anticipate. Read the rest of this entry »