February 13, 2009
- eBillme – Shop and Pay Cash with Online Banking
eBillme allows customers to pay for goods online using the bill pay service of online banking. When the user chooses eBillme as their payment method, eBillme presents them with a bill. The user then logs into their online banking site and uses the information on the bill to set eBillme up as a biller. The user then enters the amount of the purchase into the amount field and sends the payment to eBillme. The merchant does not send the items until the bill payment is received. The draw back to this service is the delay in shipping. Depending on when the purchase is made, the delay could be between 1 to 3 days – eBillme says they are part of the Mastercard RPPS network so the bill will most likely be delivered electronically. The problem for banks is that they are losing out on interchange when a customer chooses eBillme over visa or mastercard. On the positive side, eBillme might help drive bill payment adoption.
- Prepaid Debit Cards Threaten Checking Accounts: New Research
At least 14% of checking account holders would be better off with a prepaid debit card. This number will probably continue to rise as people write less and less checks. Aite group says that banks could start to take advantage of prepaid cards by striking cobranding deals with some of the established players.
Alternative payments provider that facilitates ACH payments from the customers bank account to the merchants account. They only charge .25% per transaction They use sms messaging for out of band authentication. I guess the advantage over PayPal is the small cost to merchants and the customer does not need to sign up for a Noca account prior to purchase.
- Mazooma Payments
Mazooma is another entry into the ever expanding alternative payments arena. Mazooma provides a service that allows users to pay for online purchases by logging into online banking and initiating a transfer. Despite the crowded field, Mazooma seems to have a unique strategy – one that seems to compete with the NACHA backed Secure Vault Payments process. The difference is that Mazooma does not require any participation from the banks. Merchant fees are about 1.5%. The problem I see is with the multiple login’s required to make one payment.
- Revolution MoneyExchange
Revolution Money Exchange allows you to link a bank account to your Revolution Money Card. P2P transfers between account holders is free. Money is transferred into the account via ACH. It seems like Revolution Money generates revenue from interchange (they claim merchants only pay .5% compared to 1.5 to 3% for other forms of payments) from merchants that accept the card and overdraft fees.
- National Payment Card on Drivers License
National Payment Card has a decoupled debit card that they provide for use in the gas station/convenience store industry. These types of niche payment programs are interesting because they save stores interchange costs by bypassing visa/mastercard in favor of the ACH network. National Payment Card is also developing a system that would allow customers to use their drivers license as a payment card. It will be interesting to see the adoption levels of a drivers license/payment card mashup. Its success might be an indicator of how successful mobile phone payments might be. In both instances, providers are asking customers to change their perceptions of payments and use a payment device whose primary purpose is not payments.