PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

MCX Reportedly Plans to Use ACH for Mobile Payments

Mercator Advisory Group by Mercator Advisory Group
January 24, 2013
in Analysts Coverage
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

During the National Retail Federation’s Annual Convention and Expo earlier this month, the Merchant Customer Exchange, or MCX, confirmed that it plans to identify shoppers by scanning quick-response (QR) codes created by mobile apps on their phones. It also now reportedly plans to withdraw shoppers’ payments using the automated clearinghouse system.

From Storefront Backtalk:

By using ACH transactions to debit bank accounts or credit lines instead of going through payment card brands’ networks, MCX expects to reduce transaction cost to as little as four cents—and cut Visa and card-issuing banks out of the loop.

Both the use of QR codes and the ACH system are consistent with MCX’s goal to reduce payment-acceptance costs. Near Field Communication, a competing technology for mobile payments, requires hardware upgrades, and it could be another two years before sufficient numbers of NFC-enabled phones are available to justify such an investment on a large scale. So using QR codes for payments seems a logical step for now and is less costly than NFC. However, NFC provides easier two-way communication between consumers’ phones and merchants’ terminals, and that will help drive merchants to embrace NFC in the long run.

But MCX also cannot ignore the benefits of tying in with an existing network that links all the various players in the payment chain to achieve its own scale, which would be consistent with another organizational goal—to alleviate the need for consumers to have multiple mobile wallets on their phones to shop at different merchants’ locations. Discover Financial Services, which already has opened its network to such organizations as eBay’s PayPal and Bill Me Later, as well as to the telecom-owned Isis network, could take on that role, if asked. Discover’s mantra of ensuring security, setting standards and rules, and creating a value proposition for consumers and merchants seems consistent with MCX’s ambitions. The other major card brands have been less open to letting third parties ride their network rails, especially without brand exposure.

Click here to read more from Storefront Backtalk.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    eCommerce On Social Media, social commerce

    The Rise of Social Commerce and Social Payments

    February 3, 2023
    Electroneum AnyTask; ETN Crypto, sales enablement

    Ethical Financial Selling: The Role of Compliance Technology and Sales Enablement

    February 2, 2023
    direct deposit

    Nacha Launches Campaign to Reach Millennials on the Benefits of Direct Deposit

    February 1, 2023
    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    January 31, 2023
    credit card tumbling

    How to Detect, and Prevent, Credit Card Tumbling

    January 30, 2023
    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    January 27, 2023
    faster payments

    Faster Payments Are Set to Revolutionize Modern Digital Payments

    January 26, 2023
    How AI can Help Manage Payments Risk in 2023

    How AI can Help Manage Payments Risk in 2023

    January 25, 2023

    • Advertise With Us
    • About Us
    • Terms of Use
    • Privacy Policy
    • Subscribe
    ADVERTISEMENT
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • News
    • Resources

    © 2022 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the Equinix report - Dojo Delivers Fast, Reliable and Secure Card Payments to Businesses on Platform Equinix