As an odd local Dutch thing we have an ongoing discussion (see earlier posts here) about whether or not payment services are sufficiently available in terms of proximity. This is due to the fact that around the millenium Dutch banks were quite early in closing branches (foreseeing/adapting to the effects of the Internet) and sometimes did so in a brutal/straightforward way; basically not treating their customers with all the respect they deserved. Still, about 99,9% of the public has a bank service within 5 kilometer of its house.
Today a group consisting of municipalities, smaller town organisations, bank, consumers, retailers and physically disabled finalised their work on the investigation if there were any remaining problems with this issue. They concluded they couldn't really find any problems, but nevertheless, in order to answer to the political discussion on proximity of bank services they agreed that they would monitor the developments closely. They also made an agreement to solve any local issues quickly by working closely together.
It will be interesting to see if anyone picks up on their press release. The title is: no problem in proximity of payment services. So my guess is that no one is going to pay attention to this non-issue. Execept perhaps for the politician Ferd Crone who still believes he's got his hands on a major social issue here and is most likely to pursue his draft legislative proposal anyhow (which more and more begins to look like a search for the Holy Grail).
Thursday, May 31, 2007
Wednesday, May 30, 2007
May 30: Parliament to debate status of ABN Amro merger/takeover
Het Financieele Dagblad reports that next week the Dutch Parliament will further discuss the ABN AMRO case.
ABN AMRO's Supervisory Board steps in with Transaction Committee
ABN AMRO announces that in response to the bid of the Consortium, the Supervisory Board has formed a Transaction Committee (the "Transaction Committee") composed of the members of the Special Committee, being Arthur Martinez, chairman of the Supervisory Board, André Olijslager, vice-chairman of the Supervisory Board and Rob van den Bergh.
The Transaction Committee will liaise with the Managing Board and key staff and advisers of the Bank on an ongoing basis on all matters with respect to the recommended offer by Barclays Plc. for ABN AMRO as announced on 23 April 2007 and with respect to the proposed offer as announced on 29 May 2007 by the Consortium of Royal Bank of Scotland, Banco Santander and Fortis.
Of course it is a sensible thing to install such a Committee. But why throw in a press release or such an obvious thing. It does seem to reflect that the Commissioners at ABN AMRO may be getting scared that they may be held partially responsible if things go wrong. Or perhaps they are just being transparent...
The Transaction Committee will liaise with the Managing Board and key staff and advisers of the Bank on an ongoing basis on all matters with respect to the recommended offer by Barclays Plc. for ABN AMRO as announced on 23 April 2007 and with respect to the proposed offer as announced on 29 May 2007 by the Consortium of Royal Bank of Scotland, Banco Santander and Fortis.
Of course it is a sensible thing to install such a Committee. But why throw in a press release or such an obvious thing. It does seem to reflect that the Commissioners at ABN AMRO may be getting scared that they may be held partially responsible if things go wrong. Or perhaps they are just being transparent...
POS-skimming reported, hundreds of victims
See the article (in Dutch) in Nieuws.nl outlining that in the province of North Holland, the police received more than 160 notifications over the weekend that skimming occurred (when paying in a shop). The POS-terminal has been taken away by the police. Total sum of money involved is unknown. Banks did outline that of course customers would be compensated.
Tuesday, May 29, 2007
RBS consortium bids 71,1 billion euro for ABN AMRO
See the Beurs XL UPDATE here and find out that the RBS trio bids about 8,6 billion more than Barclays. The division is:
- RBoS pays 27,2 billion euro for 38,2 % and desires the American and Asian bits of ABN AMRO,
- Fortis pays 24 billion euro for 33,8 % and gets Benelux, private banking and asset management,
- Santander pays 19,9 billion euro for the Brazilian and Italian activities.
To fund all this, Fortis will do a share emission for 15 billion euro, but it will also sell off some assets (see FD report here). The brand ABN AMRO will continue to exist.
- RBoS pays 27,2 billion euro for 38,2 % and desires the American and Asian bits of ABN AMRO,
- Fortis pays 24 billion euro for 33,8 % and gets Benelux, private banking and asset management,
- Santander pays 19,9 billion euro for the Brazilian and Italian activities.
To fund all this, Fortis will do a share emission for 15 billion euro, but it will also sell off some assets (see FD report here). The brand ABN AMRO will continue to exist.
Monday, May 28, 2007
RBS bid will come a bit later: DNB fears the risks...
Nu.nl reports that the RBS bid will be announced tomorrow, Tuesday (as the Monday is a holiday here). But rumour in the Observer has it that DNB has a lot of concerns and fears as to the risks involved (even though RBS provided a full financial guarantee). DNB doesn't find the liquidity or solvability sufficient and is concerned as to the financial stability.
Well, the question is, can a supervisor that itself has been so bad in recognizing risks in the past (due to which it let some serious issues go sour at van der Hoop resulting in a liquidation of that bank...), now suddenly make proper risk assessments. Or will they be more careful, due to image considerations and thus prefer Barclays? To only find out many years later, that that was even more risky....?
Isn't it just a fact that regardsless of the party taking over, there will be a lot of changes for ABN AMRO. The main question is which company is best able to deal wih those changes/complexity.
Well, the question is, can a supervisor that itself has been so bad in recognizing risks in the past (due to which it let some serious issues go sour at van der Hoop resulting in a liquidation of that bank...), now suddenly make proper risk assessments. Or will they be more careful, due to image considerations and thus prefer Barclays? To only find out many years later, that that was even more risky....?
Isn't it just a fact that regardsless of the party taking over, there will be a lot of changes for ABN AMRO. The main question is which company is best able to deal wih those changes/complexity.
Sunday, May 27, 2007
President of central bank spotted in New York..... why... ABN AMRO?
An interesting blog here by Gerben van der Marelm, reporter for NRC. He discovered Wellink was on the plane to New York. And asked him what he was going to do. Well, just a visit to his son, Wellink replied. Which Gerben wrote down on his blog, noting that all colleagues at home in the Netherlands said... how can you believe that...?
So the question is really, is there no business to be done at all in New York..? For example convincing Bank of America it should stop with these litigation threats... or it should not enter into a deal with RBOS....
Only in a number of months will we know what really happened...
So the question is really, is there no business to be done at all in New York..? For example convincing Bank of America it should stop with these litigation threats... or it should not enter into a deal with RBOS....
Only in a number of months will we know what really happened...
Saturday, May 26, 2007
May 25, financial analystis favour RBS-consortium bid
DFT reports that an enquiry by Reuters shows that 7 out of 11 analysts believe that the RBS bid will be more successfull. Only 3 believe with a 100 % certainty that the Barclays bid will go through.
My guess: while the majority of the analysts is right, it may not always be about being right analytically. ABN AMRO has a former DNB-manager (deSwaan) in the background and will play some regulatory cards, casting doubt as to the RBS-bid. And with a lot of doubts, a central bank will not be happy, because that may mean a lot of risk as well.
My guess: while the majority of the analysts is right, it may not always be about being right analytically. ABN AMRO has a former DNB-manager (deSwaan) in the background and will play some regulatory cards, casting doubt as to the RBS-bid. And with a lot of doubts, a central bank will not be happy, because that may mean a lot of risk as well.
P&S news 50 is out...
With:
1. ECB and European Commission – Joint statement on the adoption of the Payment Services Directive
2. PayPal Europe – granted banking licence by the CSSF in Luxembourg
3. United Kingdom – Google checkout launched in the UK
4. Sweden – New structure for cash handling
5. Visa payWave – contactless payment solutions get a global brand name
Articles, speeches and reports:
1. European Commission – SEPA conference for public administrations
2. ECB – "The new SEPA landscape from vision to reality (and back)", speech by Gertrude Tumpel-Gugerell
3. ECB – “Modernising payments: No pain no gain”, speech by Gertrude Tumpel-Gugerell
4. Banca d'Italia – Guidelines for the business continuity of payment system significant infrastructures
5. Bank of England – Financial Stability Paper No. 2 – A new approach to assessing risks to financial stability
6. Magyar Nemzeti Bank – April 2007 Report on Financial Stability
7. Sveriges Riksbank – The use of cash and the size of the shadow economy in Sweden
8. Bank of Canada – Modelling Payments Systems: A Review of the Literature
9. Bank of Canada – Managing Adverse Dependence for Portfolios of Collateral in Financial Infrastructures
10. Federal Reserve Bank of Kansas City – Interchange Fees in Australia, the UK and the United States: Matching Theory and Practice
11. Federal Reserve Bank of Boston – Study of Consumer Behavior and Payment Choice: A survey of Federal Reserve System Employees
12. Federal Reserve Bank of Boston – Update of the Consumer Payments Research Industry Reference Guide
13. Federal Reserve Bank of Boston – Emerging payments industry briefing: "Mobile phone: the new way to pay?"
14. CapGemini - World Retail Banking Report 2007
15. UEAPME – The European association of craft, small and medium-sized enterprises has published a position paper on the SEPA
16. ForeSee – Bank customer satisfaction higher through online bill payment.
1. ECB and European Commission – Joint statement on the adoption of the Payment Services Directive
2. PayPal Europe – granted banking licence by the CSSF in Luxembourg
3. United Kingdom – Google checkout launched in the UK
4. Sweden – New structure for cash handling
5. Visa payWave – contactless payment solutions get a global brand name
Articles, speeches and reports:
1. European Commission – SEPA conference for public administrations
2. ECB – "The new SEPA landscape from vision to reality (and back)", speech by Gertrude Tumpel-Gugerell
3. ECB – “Modernising payments: No pain no gain”, speech by Gertrude Tumpel-Gugerell
4. Banca d'Italia – Guidelines for the business continuity of payment system significant infrastructures
5. Bank of England – Financial Stability Paper No. 2 – A new approach to assessing risks to financial stability
6. Magyar Nemzeti Bank – April 2007 Report on Financial Stability
7. Sveriges Riksbank – The use of cash and the size of the shadow economy in Sweden
8. Bank of Canada – Modelling Payments Systems: A Review of the Literature
9. Bank of Canada – Managing Adverse Dependence for Portfolios of Collateral in Financial Infrastructures
10. Federal Reserve Bank of Kansas City – Interchange Fees in Australia, the UK and the United States: Matching Theory and Practice
11. Federal Reserve Bank of Boston – Study of Consumer Behavior and Payment Choice: A survey of Federal Reserve System Employees
12. Federal Reserve Bank of Boston – Update of the Consumer Payments Research Industry Reference Guide
13. Federal Reserve Bank of Boston – Emerging payments industry briefing: "Mobile phone: the new way to pay?"
14. CapGemini - World Retail Banking Report 2007
15. UEAPME – The European association of craft, small and medium-sized enterprises has published a position paper on the SEPA
16. ForeSee – Bank customer satisfaction higher through online bill payment.
May 26- Securities regulator now demanding explanation from VEB (shareholders ABN AMRO)
The NRC informs us that the securities regulator, AFM, is trying to figure out if the pro-active shareholders associaton (VEB) has done something illegal during the take-over procedure of ABN AMRO.
Well of course VEB has done a lot and was shown to be right when challenging the LaSalle sale in court. So what happens next is that apparently the regulators get a bit sick of VEB complaining and sueing all around. So they get some in return which is an investigation into the role of the VEB.
VEB immediately published the AFM's letter with questions. Yet AFM did not wish to reply publicly, stating that it finds the letter confidential. But it is clear that it wishes the account numbers of VEB-employees and a list of the contacts of VEB with all involved players in the ABN AMRO take-over.
Well of course VEB has done a lot and was shown to be right when challenging the LaSalle sale in court. So what happens next is that apparently the regulators get a bit sick of VEB complaining and sueing all around. So they get some in return which is an investigation into the role of the VEB.
VEB immediately published the AFM's letter with questions. Yet AFM did not wish to reply publicly, stating that it finds the letter confidential. But it is clear that it wishes the account numbers of VEB-employees and a list of the contacts of VEB with all involved players in the ABN AMRO take-over.
SNS Bank targets ABN AMRO customers with you-tube switching service commerical
In Europe there is some debate as to user mobility and the ease with which one can change banks. The EU has even set an expert group for this purpose. But interestingly that work may not be necessary anymore, given that the Commissions' enquiry into competition in banking outlines:
It is likely that a large proportion of banking customers, probably the majority in most Member States would describe themselves as satisfied with their current bank. For these customers the question of switching bank (and its related costs) does not arise.
For the Netherlands, the whole debate is in itself quite unnecessary; despite all easy shots from the hip (mostly by disgruntled representatives of consumer organisations rather than by the real consumers) there is quite some competition here and we also have a proper interbank switching service. The service works quite well and banks are effectively and actively using this service to lure customers away.
Most banks have integrated the switching service application form into their opening process. And now, playing on the ABN AMRO take-over sentiments, local bank SNS (savings banks) has even made quite a hilarious you-tube commercial and put it on a dedicated website with the name: switching to SNS-dot.nl. This commercial shows an ABN AMRO manager teaching the ABN AMRO consumers how to ask for a quick replacement of a lost debit-card (pinpas).
Now, anyone still claiming that banks do not properly compete ?
It is likely that a large proportion of banking customers, probably the majority in most Member States would describe themselves as satisfied with their current bank. For these customers the question of switching bank (and its related costs) does not arise.
For the Netherlands, the whole debate is in itself quite unnecessary; despite all easy shots from the hip (mostly by disgruntled representatives of consumer organisations rather than by the real consumers) there is quite some competition here and we also have a proper interbank switching service. The service works quite well and banks are effectively and actively using this service to lure customers away.
Most banks have integrated the switching service application form into their opening process. And now, playing on the ABN AMRO take-over sentiments, local bank SNS (savings banks) has even made quite a hilarious you-tube commercial and put it on a dedicated website with the name: switching to SNS-dot.nl. This commercial shows an ABN AMRO manager teaching the ABN AMRO consumers how to ask for a quick replacement of a lost debit-card (pinpas).
Now, anyone still claiming that banks do not properly compete ?
ESI: gaming PSP and e-money instituion: annual report
Readers that are interested in the 'hidden' world of gaming and payments for gaming, may appreciate the ESI press release containing a description of the developments in 2006 for this gaming payment service provider.
Fiscal 2007 was a year of significant decline in ESI's North American payment processing business for non-domestic internet merchants for U.S. consumers. ESI's strategy during the year was focused on expanding its market in North America before the enactment of the Unlawful Internet Gambling Enforcement Act (the "UIGEA") which lead to the cessation of the payment processing business for non-domestic internet gaming merchants for U.S. consumers.
Essentially they got stuck into US-litigation over their payment service provision for gaming in the US. And the US authorities also seized a part of their assets (as with e-gold):
Subsequent to year end approximately US$ 8.31 million Merchant Reserve Funds in the USA were seized by the U.S. Department of Justice (DoJ). The company is continuing to work with the DoJ through its legal counsel to resolve the situation.
So they refocused, obtained an e-money license (for penetration towards Europe) and had an IPO saving their financial day...
- Obtained an e-money license from the UK Financial Services Authority. This allows us to launch our products in Europe.
- Sourcing investment for growth. The Company raised $10 million through an Initial Public Offering of its shares which listed on the Toronto Stock Exchange, on March 30, 2006.
Fiscal 2007 was a year of significant decline in ESI's North American payment processing business for non-domestic internet merchants for U.S. consumers. ESI's strategy during the year was focused on expanding its market in North America before the enactment of the Unlawful Internet Gambling Enforcement Act (the "UIGEA") which lead to the cessation of the payment processing business for non-domestic internet gaming merchants for U.S. consumers.
Essentially they got stuck into US-litigation over their payment service provision for gaming in the US. And the US authorities also seized a part of their assets (as with e-gold):
Subsequent to year end approximately US$ 8.31 million Merchant Reserve Funds in the USA were seized by the U.S. Department of Justice (DoJ). The company is continuing to work with the DoJ through its legal counsel to resolve the situation.
So they refocused, obtained an e-money license (for penetration towards Europe) and had an IPO saving their financial day...
- Obtained an e-money license from the UK Financial Services Authority. This allows us to launch our products in Europe.
- Sourcing investment for growth. The Company raised $10 million through an Initial Public Offering of its shares which listed on the Toronto Stock Exchange, on March 30, 2006.
Friday, May 25, 2007
DOCData takes over Triple Deal (to establish Doc-date e-Financial services)
See the article on BNR Nieuwsradio that outlnies that DOCdata increases its stakes ni payment-service-provider Triple Deal B.V. from 30 to 70 % for a payment of 1,8 million euro in cash. Some 20 % of the shares remain in posession of Conclusion Consultants B.V. te Utrecht en some 10% are newly issued to Syllion B.V. in Baarn. This latter company is going to play an important role in the further development of Triple Deal.
Docdata will also provide an additional credit of 0,9 million euro so that Triple Deal can further build towards international expansion of its activities. Idea behind all his is that Docdata will now be able to provide full service internet-solutions through its e-solutions Group. As a result the name Triple Deal will be changed to DOCdata e-Financial Services.
So after Bibit, that is the second take-over in the Payment Service Providers business. Let's wait a while and see which company will take over Ogone then....
Docdata will also provide an additional credit of 0,9 million euro so that Triple Deal can further build towards international expansion of its activities. Idea behind all his is that Docdata will now be able to provide full service internet-solutions through its e-solutions Group. As a result the name Triple Deal will be changed to DOCdata e-Financial Services.
So after Bibit, that is the second take-over in the Payment Service Providers business. Let's wait a while and see which company will take over Ogone then....
May 24: Groenink writes employees: on the Barclays track
DFT reported on a letter that Groenink sent to its employees. In it he still seems to be going for the Barclays route.
Thursday, May 24, 2007
GTnews article on conference about SEPA-role for the Public Sector
See the GTWnews article here outlining the content of the conference on SEPA for the public sector. It was done in response to the claims of EPC that also governments should take action. So McCreevy organised it and had some statements such as:
Where are we now with the SEPA project, and what do we need to do next? The good news is that the technical, business and legal foundations of the project have been firmly established. The recent adoption, in a single reading, of the Payments Services Directive (PSD) is in particular a major achievement. Now we need a robust and realistic timeline for completion of the project. And by completion, I mean wide-spread use of SEPA products by retail customers, SMEs, corporates and the public sector.
The PSD will not be implemented in national law until November 2009. This means that the SEPA direct debit products will not be available before that time. Only a few EU member states have so far declared their intention to phase out their domestic payments system and adopt SEPA. Against this background, the latest declaration of the EPC Plenary that they expect a critical mass of users by 2010 is a challenge. Therefore, we need to instil a sense of momentum and dynamism to make SEPA the success we all want it to be. Each stakeholder has to take responsibility for this in their respective domain.
Let me first turn to what I believe the banking sector should do. The banks obviously have the responsibility to design SEPA products that are attractive to customers, competitively priced and retain at least the levels of performance that current national products have. I am sure during the course of today you will have plenty of opportunity to hear what the banks plan and to have your questions answered.
Next, the banks will need to ensure that there are adequate governance structures in place to manage SEPA. The EPC is the only show in town as far as private sector governance of SEPA is concerned. It needs to better involve the users of payment services in its deliberations.
More also needs to be done to invest real authority in the EPC so that it can ensure that all banks are preparing themselves for the SEPA payments market on schedule. Laggards should be gently but firmly told to step up their efforts. The EPC will also need to use its new authority to establish a realistic timeline that all banks will be able to stick to for phasing out their old payments products and migrating their customers to SEPA products. To do this successfully, the EPC must be assured of the backing of banks at the top levels. This is an issue for boardroom discussion.
Well, this looks as if the EPC asked McCreevy to say that they need more power... so that the timelines of 2010 can be achieved. Yet, as stated earlier in this blog, in 2010 there may be some new instruments, but mass usage or domestic migration is unlikely to be underway (with a direct debit only coming on the market in 2010).
Where are we now with the SEPA project, and what do we need to do next? The good news is that the technical, business and legal foundations of the project have been firmly established. The recent adoption, in a single reading, of the Payments Services Directive (PSD) is in particular a major achievement. Now we need a robust and realistic timeline for completion of the project. And by completion, I mean wide-spread use of SEPA products by retail customers, SMEs, corporates and the public sector.
The PSD will not be implemented in national law until November 2009. This means that the SEPA direct debit products will not be available before that time. Only a few EU member states have so far declared their intention to phase out their domestic payments system and adopt SEPA. Against this background, the latest declaration of the EPC Plenary that they expect a critical mass of users by 2010 is a challenge. Therefore, we need to instil a sense of momentum and dynamism to make SEPA the success we all want it to be. Each stakeholder has to take responsibility for this in their respective domain.
Let me first turn to what I believe the banking sector should do. The banks obviously have the responsibility to design SEPA products that are attractive to customers, competitively priced and retain at least the levels of performance that current national products have. I am sure during the course of today you will have plenty of opportunity to hear what the banks plan and to have your questions answered.
Next, the banks will need to ensure that there are adequate governance structures in place to manage SEPA. The EPC is the only show in town as far as private sector governance of SEPA is concerned. It needs to better involve the users of payment services in its deliberations.
More also needs to be done to invest real authority in the EPC so that it can ensure that all banks are preparing themselves for the SEPA payments market on schedule. Laggards should be gently but firmly told to step up their efforts. The EPC will also need to use its new authority to establish a realistic timeline that all banks will be able to stick to for phasing out their old payments products and migrating their customers to SEPA products. To do this successfully, the EPC must be assured of the backing of banks at the top levels. This is an issue for boardroom discussion.
Well, this looks as if the EPC asked McCreevy to say that they need more power... so that the timelines of 2010 can be achieved. Yet, as stated earlier in this blog, in 2010 there may be some new instruments, but mass usage or domestic migration is unlikely to be underway (with a direct debit only coming on the market in 2010).
Capitalia and UniCredit merge to become second largest bank in Europe
See the news here that the Executive boards of UniCredit and Capitalia agreed to a merger. UniCredit, the biggest Italian bank will pay 21,9 billion Euro in stock for its smaller competitor Capitalia. This leads to the second largest bank in Europe. ABN has a share of 8,6 % in Capitalia, valued at 1,7 billion euro.
1. The merging continues.
2. The ABN AMRO assets can also be used later on.... to pay off loans for the takeover.
1. The merging continues.
2. The ABN AMRO assets can also be used later on.... to pay off loans for the takeover.
May 22, lengthy letter of Finance Ministry: ABN complicated things with sale of laSal(l)e
Here is a link to a letter by the Dutch Ministry of Finance further describing the procedures and rules in the take-over of financial institutions. Apart from a bit of lecturing, the Finance Minister notes that ABN AMRO complicated the take-over procedure with the sale of LaSalle. There is also a hint that in the end clear arguments and information are necessary, as it is the shareholder that has to make informed decisions (in the end).
I consider that a hidden complaint as to the brave and quick panic-sale of la Sal(l)e by Groenink.
I consider that a hidden complaint as to the brave and quick panic-sale of la Sal(l)e by Groenink.
Postbank jobs in Leeuwarden will remain despite changes to ING
The local Leeuwarder Courant reports that the Postbank will continue to provide jobs for local employees, despite the large change-over to ING. The Executive Board has informed the labour unions on this. At present there are 2100 employees in Leeuwarden, of which 1150 work for the Postbank.
May 23: Fortis considers ABN AMRO unique opportunity
See the news here at RTL outlining that Fortis chair Maurice Lippens stated in the annual share holders meeting in Brussels that it considered a takeover of ABN AMRO a unique opportunity. On the other hand, he also mentioned that Fortis does not need ABN AMRO to grow, so he's not going to overpay....
Rabobank adapts Minitix to penetrate m-payments market
See the news of last week on zibb.nl and Emerce, explaining that Rabobank is adapting its e-purse application Minitix (10.000 users and 100 shops) for use with the mobile. Ths user may now load the purse with 99,99 euro (this was 10 euro) and then pay for all kinds of digital stuff, that you usually pay with the mobile phone. Paying with Minitix can be done by using a shortcode.
The benefits are really there for the merchant; they are now glued to the mobile phone companies which only allow for payments of 1,50 euro max and then take a slice of 40-50 % as all-in merchant service fee. So Minitix add to the range and competition. Of course they will outsmart the sms; that is not so complicated: see the list of payment mechanisms (and cost) to buy a ringtone of 99 eurocent (with a popular radiostation radio538) are:
- 0900 (€ 0.31 extra)
- 0909-Pay Per Minute (€ 0.41 extra)
- Click&Buy (€ 0.15 extra)
- iDEAL (Rabobank, Postbank, ABN AMRO, SNS Bank)(€ 0.65 extra)
- MasterCard (€ 0.44 extra)
- MiniTix (€ 0.32 extra)
- PayPal (€ 0.40 extra)
- SMS (€ 2.01 extra)
- VISA (€ 0.44 extra)
- Waardecoupon (€ 0.00)
- Wallie-Card (€ 0.18 extra)
- YourGift (€ 0.00 extra)
Well, whats the use of such a payment mechanism if it is not freely available across closed mobile portals? Not so much, so that's why Rabobank also focused on the Open Mobile Internet initiative (OMI). This aims for open m-portals rather then the current closed shops where customers of Vodafone can hop around in the vodafone portal but really get charged when outside that portal (with Vodafone of course taking in the kick-back fees from content-providers on their own portal).
As it turns out that the customer doesn't like this closed shop idea (imagine that the internet started with a bunch of paid content available from the start, rather than as the free web it was) even the mobile operators feel that they have to change their business model (and there may be of course a bit of a concern that competition regulators start to understand their current business model with extraordinary high merchant service fee charges). So thats why they're also in the OMI.
By the way, the Rabobank Minitix is operator and bank-independent; just the same as earlier initiatives (that may have been too early in the market): Moxmo, Digipay (read the public report on their liquidation here). So let's see if this next shot at the m-payments market will have an impact.
The benefits are really there for the merchant; they are now glued to the mobile phone companies which only allow for payments of 1,50 euro max and then take a slice of 40-50 % as all-in merchant service fee. So Minitix add to the range and competition. Of course they will outsmart the sms; that is not so complicated: see the list of payment mechanisms (and cost) to buy a ringtone of 99 eurocent (with a popular radiostation radio538) are:
- 0900 (€ 0.31 extra)
- 0909-Pay Per Minute (€ 0.41 extra)
- Click&Buy (€ 0.15 extra)
- iDEAL (Rabobank, Postbank, ABN AMRO, SNS Bank)(€ 0.65 extra)
- MasterCard (€ 0.44 extra)
- MiniTix (€ 0.32 extra)
- PayPal (€ 0.40 extra)
- SMS (€ 2.01 extra)
- VISA (€ 0.44 extra)
- Waardecoupon (€ 0.00)
- Wallie-Card (€ 0.18 extra)
- YourGift (€ 0.00 extra)
Well, whats the use of such a payment mechanism if it is not freely available across closed mobile portals? Not so much, so that's why Rabobank also focused on the Open Mobile Internet initiative (OMI). This aims for open m-portals rather then the current closed shops where customers of Vodafone can hop around in the vodafone portal but really get charged when outside that portal (with Vodafone of course taking in the kick-back fees from content-providers on their own portal).
As it turns out that the customer doesn't like this closed shop idea (imagine that the internet started with a bunch of paid content available from the start, rather than as the free web it was) even the mobile operators feel that they have to change their business model (and there may be of course a bit of a concern that competition regulators start to understand their current business model with extraordinary high merchant service fee charges). So thats why they're also in the OMI.
By the way, the Rabobank Minitix is operator and bank-independent; just the same as earlier initiatives (that may have been too early in the market): Moxmo, Digipay (read the public report on their liquidation here). So let's see if this next shot at the m-payments market will have an impact.
Tuesday, May 22, 2007
New campaign effort to promote debit-card use for low value payments
Currence today launched a campaign to create awareness with the public that it is fine to use the debit-card for low value payments. The action is the second follow up to the outcome of a McKinsey/DNB study with respect to profits/loss in Dutch payments. The study showed that it would make sense to eliminate surcharging for low value payments. So now, we're gradually moving that way.
The first thing that happened, as a follow up to the report, was that more simple offerings were developed for all-in-one terminal packages. See the website devoted to this measure: smart POS packages....
The two measures will undoubtedly be reflected in this years data on PIN-payments in the Netherlands.
The first thing that happened, as a follow up to the report, was that more simple offerings were developed for all-in-one terminal packages. See the website devoted to this measure: smart POS packages....
The two measures will undoubtedly be reflected in this years data on PIN-payments in the Netherlands.
Correction: no ABN AMRO talks on sale Banco Real
Het Financieele Dagblad corrects its earlier report and rectifies that ABN AMRO is not talking about the sale of Banco Real. It also reports that VEB has assembled shareholders in London, this monday, to discuss how it would be possible to make Barclays raise its bid (for which they have only 1 day left).
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