Monday, May 5, 2014

Best Reading of the Day - Entry 0114 ACH Power

I pretty much read everything Karen Webster writes at PMTS.com.  She is back with more interesting writing.

http://www.pymnts.com/news/2014/the-payments-networks-next-real-threat/#.U2fZ8IFdU1I

Here is a snippet from that piece:

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Innovators have fantasized about an ACH-powered network for like forever in an effort to reduce the cost of payments and break their dependence on the existing payments networks and the interchange fee structure associated with it. It’s what MCX is clearly interested in doing, it’s why PayPal wants its customers to register their bank accounts to their PayPal accounts instead of their credit card accounts, and it’s what every mobile app with a payments account registered to it wants too. The trick for these new potential “networks” will be how acceptance is priced. If it’s too high, and merchants won’t have any incentive to adopt; too low and banks won’t be able to monetize their precious asset – the bank account.

...

Happy Reading,

J.W. Gant

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