kate cole, aap, cae mk cole consulting - icba...ach usually a one-day delay, might be a same day...

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Kate Cole, AAP, CAE MK Cole Consulting

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Page 1: Kate Cole, AAP, CAE MK Cole Consulting - ICBA...ACH Usually a one-day delay, might be a same day entry Card networks Can be within seconds using card to card In-house transfer, both

Kate Cole, AAP, CAE

MK Cole Consulting

Page 2: Kate Cole, AAP, CAE MK Cole Consulting - ICBA...ACH Usually a one-day delay, might be a same day entry Card networks Can be within seconds using card to card In-house transfer, both

▪ Mobile Wallets

▪ Who is out there

▪ How they work

▪ Crypto Currencies

▪ Faster Payments

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Page 3: Kate Cole, AAP, CAE MK Cole Consulting - ICBA...ACH Usually a one-day delay, might be a same day entry Card networks Can be within seconds using card to card In-house transfer, both

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Apple Pay

Amazon Pay

Google Pay

Samsung Pay

Walmart Pay

Venmo –Pay Pal

Zelle – Early Warning

Facebook

People Pay - FIS

Pop Money - Fiserv

Page 4: Kate Cole, AAP, CAE MK Cole Consulting - ICBA...ACH Usually a one-day delay, might be a same day entry Card networks Can be within seconds using card to card In-house transfer, both

▪ 34% of new iPhone owners link a card to Apple Pay during the device onboarding process.

▪ 14% of new Android smart-phone owners link a card to Google Pay during the device onboarding process.

▪ 8% of Samsung smart-phone owners have tried Samsung Pay in the past 90 days.

▪ 8% of Android smart-phone owners have tried Google Pay in the past 90 days.

▪ 19% of iPhone owners have tried Apple Pay in the past 90 days.

Source: 451 Research fourth-quarter 2017 consumer survey

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Page 5: Kate Cole, AAP, CAE MK Cole Consulting - ICBA...ACH Usually a one-day delay, might be a same day entry Card networks Can be within seconds using card to card In-house transfer, both

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Venmo Apple Pay Starbucks Walmart Pay Google Pay Samsung Pa Chase Pay

In Millions

In Millions

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Source: Crone Consulting

Page 6: Kate Cole, AAP, CAE MK Cole Consulting - ICBA...ACH Usually a one-day delay, might be a same day entry Card networks Can be within seconds using card to card In-house transfer, both

▪ Amazon Pay

▪ Looking at payments through Alexa

▪ Apple Pay

▪ New Apple Cash Pay will ride Discovers network rails

▪ Google Pay

▪ Available in 18 countries

▪ Samsung Pay

▪ Can connect to point-of-sale terminals via near-field communication.

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Page 7: Kate Cole, AAP, CAE MK Cole Consulting - ICBA...ACH Usually a one-day delay, might be a same day entry Card networks Can be within seconds using card to card In-house transfer, both

▪ Walmart Pay

▪ QR-code-based mobile-payment service; use with Walmart-branded credit cards

▪ Venmo- PayPal

▪ Includes a social media layover; allows for users to chat

▪ Zelle – Early Warning

▪ Focused on Millennial and younger GenXers

▪ Banks have jumped on this wagon

▪ Facebook

▪ Peer-to-peer payments and conversations in Messenger

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Page 8: Kate Cole, AAP, CAE MK Cole Consulting - ICBA...ACH Usually a one-day delay, might be a same day entry Card networks Can be within seconds using card to card In-house transfer, both

▪ People Pay – FIS

▪ Uses your online banking system

▪ The bank does not have to be an FIS customer

▪ Pop Money – Fiserv

▪ Uses your online banking system

▪ Must be deposited into an eligible account

▪ Send using an email or cell number

▪ Recipient then receives instructions on how to get their money

▪ White label so the bank can brand it

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Page 9: Kate Cole, AAP, CAE MK Cole Consulting - ICBA...ACH Usually a one-day delay, might be a same day entry Card networks Can be within seconds using card to card In-house transfer, both

MOBILE WALLETS

USE…

▪ ACH

▪ Usually a one-day delay, might be a same day entry

▪ Card networks

▪ Can be within seconds using card to card

▪ In-house transfer, both accounts at the same bank

▪ May use…Cryptocurrency

▪ Distributed ledger

▪ Payments can be received from minutes to 3 days

▪ The money may be in the account, but settlement happens like always in the network they use.

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Page 10: Kate Cole, AAP, CAE MK Cole Consulting - ICBA...ACH Usually a one-day delay, might be a same day entry Card networks Can be within seconds using card to card In-house transfer, both

▪ Peer-to-Peer electronic cash system

▪ Only miners can confirm transactions by solving a cryptographic puzzle

▪ Is only in a ledger

▪ Need an exchange to move to and from crypto▪ Kraken, BitFinex, BitStamp,

Coinbase

▪ Kept online – nothing in hard copy

▪ Pricing is volatile

▪ Not accepted everywhere

▪ Bitcoin - $3,818.56

▪ Litecoin - $29.97

▪ Ripple - $0.346475

▪ Bitcoin Cash - $138.21

▪ Newmont Mining Corp – $33.79

▪ IOTA - $0.270301

▪ NEO - $18.19

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Page 11: Kate Cole, AAP, CAE MK Cole Consulting - ICBA...ACH Usually a one-day delay, might be a same day entry Card networks Can be within seconds using card to card In-house transfer, both

▪ New set of rails created and managed by The Clearing House

▪ Up 24 x 7

▪ Can participate directly with TCH, through a correspondent, or third-party service provider (core processor)

▪ Fund an account or correspondent

▪ Does operations work 24 x 7?

▪ What is the cost to participate?

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Page 12: Kate Cole, AAP, CAE MK Cole Consulting - ICBA...ACH Usually a one-day delay, might be a same day entry Card networks Can be within seconds using card to card In-house transfer, both

▪ Looking at a 24x7x365 network

▪ Payments and settlement

▪ Looking for comments to their proposal in a Federal Register Notice

▪ Have a website specific to faster payments

▪ https://fedpaymentsimprovement.org/

▪ May update a current system; may build a new system

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Page 13: Kate Cole, AAP, CAE MK Cole Consulting - ICBA...ACH Usually a one-day delay, might be a same day entry Card networks Can be within seconds using card to card In-house transfer, both

▪ Kate Cole, AAP, CAE

▪ MK Cole Consulting

[email protected]

▪ 612.910.9286

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