RTP Is from Venus, Crypto Is from Mars

The article, “Do Advances In Real-Time Payments Make Crypto Less Interesting?” fails to recognize the key differences between the two payment platforms and poses the question, Are these “parallel but separate” rails? The obvious answer is “Yes, they are!”  While crypto and RTP provide similar functions, there are two critical differences which are not related to payment rails; these differences are about funding and worldview. Funding: Investors won’t get rich investing in RTP. In fact, achieving breakeven is likely to take many years. As a result, RTP will never receive the level of investment crypto gets today (VC’s invested $3B [...]

By Tim Sloane|2022-03-28T09:40:01-04:00March 28th, 2022|Tags: , , , , |

The Race Is on to Digitize the U.S. Dollar

The global payment networks, the high-tech companies, and the U.S. Government are competing in the race to digitize the U.S. dollar. With the U.S. Government in dead last, I would suggest the lead goes to the global payment networks because they have considerable advantages: Broad worldwide acceptance Account structures that enable the accumulation of value (not just private/public keys which are literally the value of any crypto and require different approaches to management within an account) Tokenized (digital) access to account balances in close to real time Support for a range of use cases as yet not possible with crypto [...]

By Tim Sloane|2022-03-28T09:25:44-04:00February 23rd, 2022|Tags: , , , |

IoT Payments 101: Everything You Need to Know

What are IoT payments? IoT stands for "internet of things" and is a phrase that describes everyday physical objects that are connected to the internet or other communications networks. IoT payments are specific transactions that occur using IoT technology. According to Mercator Advisory Group, an IoT payment is defined as follows: "A machine-triggered payment with real-time analytics and data collection. An IoT payment is a real-time, data-driven payment that does not involve the buyer making a purchase decision. Instead, the buyer has previously authorized a plan for payments to be made automatically based on feedback from a sensor or automated [...]

By Adam Winograd|2021-12-09T20:21:16-05:00November 3rd, 2021|

Non-Fungible Token (NFT) – Good Investment or Ripe for Fraud?

The idea that you can claim ownership of a physical or digital item using a blockchain's immutable ledger is so compelling that it has become the darling of the blockchain world. By one estimate, more than $2 billion was spent on non-fungible tokens (NFTs) during just the first quarter of 2021 - representing an increase of about 2,100% from Q4 2020. Let's dig in to understand what NFT's are, and how the blockchain is supposed to register items so that digital items can be owned in perpetuity and royalties for usage of registered items can be established. What does non-fungible [...]

By Tim Sloane|2021-07-16T18:32:13-04:00April 27th, 2021|

Iot Payments, a Payment Mode Further Automating and Digitizing the Consumer Purchase Cycle

The payments industry has come to associate IoT payments with “smart” devices like the smartwatch, smart speaker, and smartphone, yet the IoT industry itself—primarily chip makers, data communications manufacturers, and providers of specialized security services—rarely considers these to be IoT devices. IoT market participants are focused on collecting, disseminating, and analyzing data to better inform and manage specific logistical areas (loading docks, city transportation, etc.) or processes (manufacturing floor, inventory management, etc.). The size and scale of this IoT environment unrelated to payments is extremely large. According to IoT Analytics, roughly 7 billion IoT devices were deployed worldwide at the [...]

By Tim Sloane|2021-07-22T13:43:26-04:00January 27th, 2020|

Slow adoption of open banking vs. surge in API platforms operating in the cloud

A contrarian view of open banking might say it has two negative characteristics: 1) regulatory and technical complexity and 2) a dearth of proven revenue opportunities. Open banking is often hyped as the threshold of a new era for banks and their customers. Yet the use cases for account holders are currently far from clear and not yet revolutionary in vision or reality—a situation that will persist for some time. The application programming interfaces (APIs), which are tools critical to implementing open banking, do not in themselves determine where banks and their customers will find their main open banking value [...]

By Tim Sloane|2021-07-22T13:50:53-04:00December 31st, 2019|

Secure Remote Commerce (SRC) speeds online and mobile checkout while assuring greater security. Here’s how.

EMVCo and the payment networks are positioning Secure Remote Commerce, or SRC, as a critical mechanism for reducing e-commerce fraud. If widely adopted by merchants, SRC will enable the elimination of some fraud types, such as malware that infects checkout screens, and can reduce others, but the safety SRC offers comes at a cost to merchants in time and effort. This blog provides a generalized technical description of how SRC operates. We will not attempt to compare and contrast specific implementation details, identify the threats these implementations should eliminate or reduce, or consider the impact of SRC on gateways, acquirers, [...]

By Tim Sloane|2021-07-22T14:00:28-04:00December 4th, 2019|

Decentralized ID and self-sovereign identity are in the works

The report, Distributed and Self-Sovereign Identity Solutions: Part 1, Technology Overview, described the technologies that are creating a new blockchain-based digital identity called self-sovereign identity (SSI). Although built for the internet, SSI is mobile centric and can be used to identify a user across all channels. It also enables verifiable credentials that can be used for Know Your Customer / Customer Information (KYC/CIP) programs. By establishing a trusted web, SSI enables the verification of claims made by an individual. The claims could be for permits, licenses, or other accreditations, or they could be claims of age, income, insurance status, or any [...]

By Tim Sloane|2021-07-22T14:10:31-04:00September 27th, 2019|

Distributed ID and Self-Sovereign Identity Are Years Away but Impact EMV 3D Secure Deployment Now

Various new technologies related to identity (ID) are being deployed by different infrastructure suppliers and woven into new solutions that aspire to expand the problems that can be addressed. This can be confusing. For example, identity solutions are currently provided by data aggregators that collect data from multiple sources, including government databases and banks, and make that aggregate data available to help validate individuals’ identity, credit risk, and other attributes. In the United States, that business is under attack from two quarters. The U.S. Office of Management and Budget has issued a memo requiring agencies that have data commonly used [...]

By Tim Sloane|2021-07-22T14:20:30-04:00August 15th, 2019|

Emerging Technology Advisory Service Update – April 2019

Greetings, I wanted to take a few minutes of your time to provide you an overview of research and commentary that has been published by the Emerging Technologies Advisory Service here at Mercator Advisory Group. I hope the structure below will help you quickly zoom in on those topics that most interest you. E-Commerce Security and New E-Commerce Payment Opportunities One of our most recent reports Securing E-Commerce: Competing Technology Crowds the Market, released in February, identifies why we expect 3-D Secure, version 2.0 (3DS2) will enter the U.S. market faster than many in the payments industry expect. The report also [...]

By Tim Sloane|2021-07-22T14:37:28-04:00April 3rd, 2019|

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