PUNE

Payment Types
Large Value Systems
These are typically process high value cri cal payments.
It is an essen al payment system, which ensures the
smooth func oning of the economy and the financial
system. These systems mostly relate to inter­bank/
inter­financial ins tu onal transac ons. Generally,
these large value systems are strictly regulated by the
Central Banks of the respec ve countries and are
electronic­based. They offer speed, reliability, safety,
convenience, cost and accuracy. Some examples include
Real Time Gross Se lement (RTGS) and Society for
Worldwide Interbank Financial Telecommunica on
(SWIFT).
Retail Payment Systems
These generally cater to transac ons related mainly to
the se lement of obliga ons, arising from the purchase
of goods and services. They typically handle
transac ons which are low in value but very large in
number rela ng to individuals, firms and corporates.
Mobile payments are classified into 3 categories:
• Mobile Proximity Payments (in­store)
• Mobile Peer­to­Peer (P2P or remi ances)
• Mobile Remote Commerce (mCommerce ­ buying
online from a mobile device)
Bank of Beijing, Co. A mid­sized lender, announced a partnership with smartphone
maker Xiaomi Tech on mobile payments and sales of WMPs and insurance
products.
- Bank of Beijing, via Reuters, 2/23/14
We’re just beginning to appreciate the full magnitude and possibili es of the
Starbucks mobile payment pla orm opportunity.”
-Howard Schultz, CEO, Starbucks, via Daily Finance, 1/29/14
MasterCard is planning to acquire digital wallet provider C­SAM, which already powers
commercial mobile payments pipelines worldwide, including ISIS in the United States.
- MasterCard, via ZDNet, 2/24/14
Source: Appinions
Apple is laying the groundwork for an expanded mobile payments service,
leveraging its growing base of users and the hundreds of millions of credit cards on
file.
- Apple, via Wall Street Journal, 1/24/14
PayPal contributed 42% of eBay’s revenues in Q3 2013, and PayPal expects to process
$20B in mobile payments in 2013, a 500% increase since 2011.
- PayPal, via Seeking Alpha, 12/11/13
In developed countries such as the US, cash and cheques are on the decline while countries such as India are s ll highly cashcentric.
The biggies in this space such as Amazon, Apple and PayPal are working on be er technologies and making payments
simpler, in a bid to woo more customers away from cash and their compe tors. With PayPal being an incumbent player, the
entry of players such as Apple and Amazon is looked upon as the beginning of possible pricing pressures and heated compe on
in this space.
Recently, online auc on company eBay announced that it is spinning off its online payments system, PayPal as a separate
company. With the announcement of its iPhone 6, Apple also announced the introduc on of Apple Pay where users just need to
tap to pay at a cash register that is enabled with something called ‘Near Field Communica on’ technology.
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