Archive for April, 2011

Will Retailers Use “Tender Steering” to Control Interchange Fees?

A process called “tender steering” is new to most retailers.  It means that a retailer can provide incentives to customers to use a particular type of card to pay.  This method could give retailers the power to drive interchange rates down by driving customers to some types of cards and away from others.

You might think that after half a century of having little or no control over the fees they pay to accept card payments, retailers would be demanding that all mobile commerce products and NFC-enabled systems support tender steering.  They are not.  Retailer associations have been virtually silent on the topic, and there are no reports of major retailer pushing this service.

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The Key to Amazon’s Mobile Payments Strategy: Know JACC

WIll Amazon Mobile Payments rely on NFC?

Last week, Bloomberg.com reported that Amazon.com’s “Amazon Payments” unit is working on a mobile solution based on Near Field Communication (NFC).    But an analysis of the potential business models and revenues strategy of Amazon all but precludes  is as the sole strategy of Amazon.  Here’s why:

Although NFC is certainly making the news these days, and multiple companies are positioning products and services leveraging NFC, Amazon.com is likely to have something better with significantly shorter lead-time. Continue reading

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