Emerging Payments Strategies Track 

Exploring Benefits (and Threats) as Mobile and Social Media Intersect

Mobile payments developments continue to advance, often driven by non-bank providers. P2P is also catching on with the emergence of a bank-owned exchange and the potential consolidation of some leading payments innovations. Payment transactions are also moving onto Facebook and other social media, creating opportunity more quickly that many financial institutions can respond. As these different trends and technologies intersect, how will retail and business payments be affected?

The Emerging Payments Strategies track focuses on the opportunities and risks created by new payments alternatives. Explore these key issues as you develop a payments strategy to keep your financial institution ready to act on new opportunities that could help drive your bottom line.

Actionable Take-Aways

Identify and answer the most difficult strategic questions surrounding emerging payments:

  • Why advertising is becoming a key element of bank mobile strategy
  • How mobile can change banks’ role in cash access
  • How mobile bill pay can contribute to e-billing and paper turn-off efforts
  • Why payments are moving to social media and how far they may penetrate business payments
  • The top non-bank alternative payments providers to watch
  • How changes in the rules are reshaping the electronic payments landscape
  • How rewards are seizing an ever more important role in new payments types

  1. Person-to-Person Payments: An Established Product That's Evolving

    Monday, March 12
    9:45 AM - 10:45 AM

    Sanjeev Dheer, President, CashEdge Division, Fiserv
    John Feldman, General Manager, clearXchange
    Arkady Fridman, Financial Innovations Business Development Manager, PayPal
    Moderator: Patricia Hewitt, Director, Debit Advisory Services, Mercator Advisory Group

    Person-to-person payments, more commonly referred to as P2P, are being offered by more and more financial institutions -- as well as payment providers and third parties. While the current product offerings are scattered among varying sizes of institutions, these implementations have been somewhat siloed, potentially hindering widespread adoption and efficient usage.

    • How should the P2P ecosystem evolve? Should we focus on strategic collaborative efforts at an industry level?
    • Who or what are the potential target markets for current P2P profiles? Will the current P2P profile lead to expanded use, such as person-to-business?
    • Could Dodd-Frank influence our modeling and delivery to our customers?
    • How can we ensure the channel's security and our customers' protection?  

  2. Successful Innovation – Creative Thinking Inside and Outside the Box

    Monday, March 12
    11:00 AM - 12:00 PM

    Mike Kennedy, Executive Vice President, Enterprise Payments Strategy, Wells Fargo & Company
    Steve Nogalo, Vice President and General Manager, Payments, Mobility and Converged Channels, NCR
    Kausik Rajgopal, Partner, Global Payments Innovation Practice, McKinsey
    Karen Webster, CEO, Market Platform Dynamics
    Moderator: Lee Manfred, Partner, First Annapolis

    Understanding the financial services market, knowing when and where to invest in product and service enhancements, and overall execution of your plan is critical to achieving innovation success. Too often, efforts to innovate fall short, leaving executives searching for the reasons for their failures. Taking a top-down approach, well known financial services industry innovation experts will share their insight on:

    • Innovating in a challenging economic and regulatory time
    • Where banking executives are placing their innovation bets and the triggers influencing their decisions on new product and service development
    • How progressive innovators source ideas, validate concepts and assemble solid business plans
    • An effective innovation life cycle to gain market share and improve existing product solutions for millions of their customers

  3. Mobile Bill Payment on the Rise: New Trends and Consumer Demands

    Monday, March 12
    2:15 PM - 3:15 PM

    Eric Leiserson, Senior Research Analyst, Fiserv Biller Solutions
    Ed Bachelder, Director of Research, BlueFlame Consulting

    Mobile bill payment is gaining traction among consumers, as more than 5.7 million online households make a bill payment from their mobile device each month. As smartphones become increasingly widespread, the service is poised for increased adoption. This session will explore the latest mobile bill payment trends, highlighting results from a recent survey of more than 2,500 consumers as well as preliminary results of a new mobile bill payment benchmarking study investigating deployment plans for mobile bill payment by companies and the pace with which businesses are adopting Mobile Bill Payment and Presentment (MBPP) options for their customers.

    • Comparison of trends of bill payment made at biller sites and at banking sites
    • Types of bills most commonly paid via mobile devices and what features will compel greater use of the service
    • The latest consumer preferences for apps, mobile web browsers and text for making bill payments
    • The relationship between mobile and paperless bill presentment (e-bills)
    • Mobile bill payment’s key role in moving mobile financial services from informational to transactional

     

  4. Headwinds and Shifting Sands: New Regulatory Complexity and Uncertainty for Financial Institutions

    Monday, March 12
    3:30 PM - 4:30 PM

    Lyn Farrell, Treliant Risk Advisors, LLC
    Cliff Stanford, Alston & Bird, LLP

    The Dodd-Frank Act is only the latest in a series of new laws over the past five years to bring about rapid changes to the rules affecting the DDA and the payments landscape. U.S. banks and payment systems are now regulated under a complex matrix of federal and state laws. Some laws are intended to be comprehensive while others are much more specific in their objectives, and all these laws bring about unintended consequences. Pricing models have been changed forever. New regulators have entered the mix. Rapid change in technology-driven business models has created new ambiguities in the law and questions affecting the path of bank business models.  Join this session for a discussion of:

    • How banks are adapting to the assault on fee revenue streams and rethinking pricing of core account products
    • How compliance functions are growing and adapting to new rules
    • What lies ahead for banks as new regulators have entered the mix
    • What competitive threats have emerged from outside the banking industry

  5. An Ancient Funds Transfer System that Challenges the PATRIOT Act

    Monday, March 12
    3:30 PM - 4:30 PM

    Sassan Cyrus Parandeh, Treasurer, ChildFund International

    In this session, attendees will learn how “hawalas,” an ancient fund transfer system, threaten the security blanket that the PATRIOT Act intended to provide. The speaker will explain the historical development of the methodology, the mechanics of how it operates and how it has adapted to 21st Century technology. The session is presented in a historical and story-telling format using many real-world examples and photographs collected from developing nations. It is designed to inform, educate, alarm and entertain. Join this session to hear: 

    • How easily the PATRIOT Act can be circumvented from outside the U.S.
    • Why the most dominant fund transfer system in the world is an ancient fund transfer system
    • How any individual could create a currency or wire transfer system
    • The history of ancient banking
    • What can law enforcement do

  6. The Intersection Between Mobile Payments and Advertising

    Tuesday, March 13
    9:45 AM - 10:45 AM

    Vincent R. D'Agostino, Senior Vice President, Payments, JPMorgan Chase
    Kareem Al-Bassam, Director of Business Development for Point-of-Sale, PayPal
    Robert Woodbury, Vice President, NYCE Payments Network, LLC, an FIS Company
    Andrea E. O’Connor, Customer Experience Executive, Assistant Vice President, State Farm Bank
    Moderator: Richard Crone, CEO, Crone Consulting LLC

    By the end of 2012, 75% of in-store sales will be mobile-influenced in some way, setting the stage for integrating mobile payments and opt-in, user-defined self-marketing and loyalty programs at the physical point of sale (POS). This session will explore how an advertising-sponsored mobile payment network can link the $5 billion local advertising market to the $6.2 trillion payments market at the physical POS.

    • What will the business model be? What will the trade-offs be as banks weigh the advantages they may give up vs. what they may gain by working with new 3rd party intermediaries?
    • What will the economic structure of the advertising offer be? Can banks go it alone and use their own mobile banking apps or how do they best work with separate mobile wallet purveyors?
    • Aggregate or be aggregated: Which approach will win? Examining the role of the wireless carrier and the business impact of having others accumulate multiple payment accounts in one mobile wallet

  7. APIs and FIs: Open Platforms in Bank Payments Systems

    Tuesday, March 13
    11:00 AM - 12:00 PM

    Oren Michels, CEO, Mashery

    When PayPal released its PayPal X API two years ago, it became the first global payment service open to third-party developers. A startup called Payvment immediately marketed a free virtual cart that let online shoppers buy products at a series of web sites, including Facebook, and then pay for everything during a single checkout. By now, Google and payment companies of all types offer outside developers secure plug-and-play payment solutions that can be embedded in whatever they’re creating. Why should banks care? Companies don’t need to take a cut on transactions to get an ROI.  APIs offer an unprecedented opportunity to expand a company’s relationships with customers because they make it easy to deploy content and services in new, ultra-relevant contexts. Those can include a bank’s own branded apps, integrations with strategic partners, and co-branded apps built by external developers. But launching an API means opening new channels of digital distribution. And like offline distributors, you’ll be expected to deliver the goods quickly and reliably. Get acquainted with the details here:

    • Accelerate deployment of digital solutions and services, including payments
    • Develop new partnerships
    • Build brand presence in emerging distribution channels (e.g., social media)
    • Create competitive and differentiated products with low cost of ownership
    • Leverage decentralized or global innovation, not just your own financial institution's finite, internal R&D team

  8. Social Payments: What They Are and Why They Matter to Bankers

    Tuesday, March 13
    2:15 PM - 3:15 PM

    Allen Weinberg, Payments Consultant, Glenbrook Partners
    Charise Flynn, COO, Dwolla
    Moderator: George Warfel, Consulting Director, Global Payment Solutions, Fiserv

    Social payments aren’t just pitching in for your share of the pizza. Social networks and collaborative media provide fertile ground for payment innovation from virtual currencies to grassroots fundraising. Facebook is the third largest country in the world with 800 million citizens, and now they have their own currency! Learn about Facebook Credits, the emerging forces of social eCommerce, and the power of personal connection driving financial transactions through new forms of social payments. Hear how two innovative new payments systems, Dwolla and Kaching leverage the community model that underlies social media to deliver a better payment experience for people.  

    • A framework for understanding social payments
    • Understanding the enabling market forces and technologies
    • How new payment systems are leveraging the community model  

  9. When Alternative Payments Become Disruptive

    Tuesday, March 13
    3:30 PM - 4:30 PM

    Susan Whitson, Executive Vice President, First National Bank, Cedar Falls, Iowa
    Daniel Kramer, Senior Vice President, Marketing and Merchant Services, SHAZAM
    Terry Dooley, Senior Vice President, Information Technology, and Chief Information Officer, SHAZAM

    Bank payment revenue streams will shrink by more than $1 billion in interchange next year due to increasing acceptance of online alternative payments, according to one consultant group’s research. What exactly are “alternative” payments and how do they threaten bank hegemony in payments? Which alternatives might also make effective bank partners? In this session, a major electronic funds transfer network and a banker discuss the changing payments landscape and how your financial institution can create its profitable payments strategy.

    • How the payments landscape is shifting and where that leaves banks today
    • The non-bank competitors that banks need to watch
    • New products and services behind the payment shifts and how to position the new options with your customers
    • Technologies that can keep your organization competitive and changing with the times
    • How marketing and demographic information can and should influence your alternative payments choices

  10. Rewards in a Mobile Banking Environment

    Tuesday, March 13
    3:30 PM - 4:30 PM

    Tom Beecher, CEO, Cartera Commerce
    Rob Heiser, President and CEO, Segmint
    Schwark Satyavolu, CEO, Truaxis
    Rod Witmond, Senior Vice President, Product Management & Marketing, Cardlytics
    Moderator: Jim Marous, Senior Director, Marketing Services, Harland Clarke

    Other panelists to be announced What will tomorrow's mobile wallet look like? How can we balance the need for transactional efficiency with value-added benefits that will drive engagement, loyalty and share of wallet? Join us as we discuss the role of loyalty and rewards in tomorrow's digital wallet. In this session attendees will learn:

    • What is being offered in the FI rewards arena today and how do these rewards differ from the points based programs of the past?
    • What benefits do merchant-based rewards bring the FI, their retail customers and potentially commercial clients?
    • How can a bank differentiate their program in the marketplace?
    • How will rewards integrate with the digital wallet to be a payments game changer in the future?  

  11. Mobile Cash Access: Using Smart Phones to Activate Advanced Functionality at ATMs

    Wednesday, March 14
    9:45 AM - 10:45 AM

    Cheryl Collier, Vice President Operations Support, State Employees Federal Credit Union
    Daniel Kramer, Senior Vice President, Marketing and Merchant Services, SHAZAM
    James Hanisch, Executive Vice President, Network Operations & Corporate Development CO-OP Financial Services
    Donna L. Embry, Senior Vice President Strategic Development, Payment Alliance International, Inc.
    Alan Walsh, Vice President of Banking, US Division, Wincor-Nixdorf
    Moderator: Heidi Liebenguth, Consulting Partner, Crone Consulting LLC

    Cash access through ATMs has been limited to network-registered cards using magnetic stripes and personal identification numbers (PINs); this all changes with mobile cash access. Now it is possible to use a smart phone app (i.e., mobile wallet) to activate and access traditional and advanced functionality at ATMs. Mobile cash access is a disruptive technology because authentication credentials can be controlled by the issuer of the smart phone app/mobile wallet without participation by the card associations. That creates the potential to dramatically disrupt the existing value chain and provide new branding and product development opportunities and a foundation for mobile payments at the physical point of sale.

    • What does it mean to stage ATM transactions “in the privacy of your own phone” for mobile cash access
    • How can you gain from using your own mobile banking app to activate ATMs vs. apps by 3rd parties
    • Hardware vs. software only approaches and how to avoid truck rolls to upgrade legacy ATM hardware for mobile cash access
    • Using your mobile banking app for strong authentication and processing that avoids card association royalties/interchange
    • ATM mobile cash access as a pathway to mobile payments and mobile self-marketing