Mobile Moolah: a panel on #Cashless #transactions
Posted on March 8th, 2017
03/08/2017 @Rise, 43 West 23rd Street, NY, 2nd floor
Kate Christensen, @Barclays, moderator
Norm Merritt is a global CEO @ShopKeep
David True is the General Manager of US operations at @Seqr Payments – QR code payments on phones
Karl Kilb, CEO of @Boloro Global – multifactor identification using USSD network
Hassan Ahmed manages Business Operations at @Venmo – mobile payments
The panel discussion started and ended with a discussion about the future of point of sale payments as the future of mobile payments. Currently, mobile POS is already disrupting retail as there is not central checkout point in Apple stores and an Amazon store in Seattle allows customers to just walk out as they are billed automatically.
E-commerce transactions have a greater chance of fraud so there is an extra 30 basis points charged over in-store transactions. Ways to reduce fraud include phone biometrics, a separate digital id verification (Boloro) and text verification on your phone.
The future of in-store sales indicates that many traditional fixed console POS devices are becoming obsolete, but there was disagreement of the speed of this transformation especially for supermarkets and other low-margin, high capital costs stores. There is also the resistance of some retailers such as Walmart and Target to allowing NFC, contact-less transactions as this could compromise their ownership of the SKU, item-by-item purchase data.
Unfortunately, the panel did not get into the long term implications of regulations for these non-bank payment agents. As these services become larger and accept balances (such as is currently done by Paypal), they will come under increased scrutiny under the banking laws. These include deposit insurance, know your customer, anti-money laundering, and anti-discrimination laws. All of these will require additional costs and changes in privacy rules to tighten information available to consumers but allow greater access by regulators and law-enforcement agencies.