Retailer Vendex/KBB just issued this press release to inform the public that the HEMA formula will do a trial with 20 ATM's to test the usage of cash dispensers in its retail stores. Consumers will not be charged for withdrawing cash (as is the case with the Moneybox ATM's). It is VendexKBB's intention to also replace the current 65 ATM's at the Bijenkorf and V&D formulas and to further expand the concept, when successfull.
The introduction of own-name cash dispensers is taking place in close cooperation with Vendex KBB Cards & Financial Services (CFS), a Group company which was set up last year to develop and market financial products and services for various retail formats. For the introduction of cash dispensers Vendex KBB is working together with the British cash dispenser supplier De La Rue and Staalbankiers.
Friday, October 31, 2003
Thursday, October 30, 2003
228 million SMS/e-money payments in 2003 in the Netherlands
Yesterdays information by Orange Netherlands about its turnover allows for an estimation of the value and number of Premium SMS in the Netherlands. Starting with the press release we know that:
- the quarterly turnover was € 124 million euro leading to an estimated total turnover of € 457 million in 2003,
- more than 10 percent of Orange's turnover is related to data income, resulting in an amount of € 45 million data turnover in 2003,
- about 75 % of the data income is SMS income, resulting in € 34 million SMS turnover for Orange Netherlands,
- Orange has a 10 percent market share, resulting in an estimated € 340 million SMS turnover for 2003 or approximately 523 million SMS's in the Netherlands,
- two thirds of the SMS's are coming from pre-paid users, resulting in 345 million SMS messages for a value of € 224 million,
- two thirds of the premium SMS's are not delivered by the operator itself but by third parties.
The resulting conservative estimate is that 228 million SMS e-money payments will be made in 2003 for a value of € 150 million. These payments qualify as e-money payments, as they are being paid out of the electronic money value issued by the mobile operators and to companies other than the operators themselves.
Last years estimate was a value of € 65 million and 100 million e-money SMS-messages. As can be expected with successfull retail payment mechanisms, the current growth percentage for e-money SMS-payments is 230 %. Consequently it may be expected that in 2004 the number of Dutch SMS/e-money payments will outnumber the total number of paper-based and Chipknip payments in the Netherlands.
So do I hear anyone claiming that e-money will not work ? Or that it is an obscure development ?
- the quarterly turnover was € 124 million euro leading to an estimated total turnover of € 457 million in 2003,
- more than 10 percent of Orange's turnover is related to data income, resulting in an amount of € 45 million data turnover in 2003,
- about 75 % of the data income is SMS income, resulting in € 34 million SMS turnover for Orange Netherlands,
- Orange has a 10 percent market share, resulting in an estimated € 340 million SMS turnover for 2003 or approximately 523 million SMS's in the Netherlands,
- two thirds of the SMS's are coming from pre-paid users, resulting in 345 million SMS messages for a value of € 224 million,
- two thirds of the premium SMS's are not delivered by the operator itself but by third parties.
The resulting conservative estimate is that 228 million SMS e-money payments will be made in 2003 for a value of € 150 million. These payments qualify as e-money payments, as they are being paid out of the electronic money value issued by the mobile operators and to companies other than the operators themselves.
Last years estimate was a value of € 65 million and 100 million e-money SMS-messages. As can be expected with successfull retail payment mechanisms, the current growth percentage for e-money SMS-payments is 230 %. Consequently it may be expected that in 2004 the number of Dutch SMS/e-money payments will outnumber the total number of paper-based and Chipknip payments in the Netherlands.
So do I hear anyone claiming that e-money will not work ? Or that it is an obscure development ?
Halifax e-mail scam....
WebWereld reports that Halifax has been the subject of an e-mail scan. The scam demonstrates that user-id, password combinations may be insufficient to secure access to bank sites. And that consumers may still need to be educated to be careful and not to provide their bank details to strangers.
Wednesday, October 29, 2003
Sony, DoCoMo team up for e-money cell phones
The Japan Times online reports that Sony and DoCoMo will set up a joint venture to further develop and exploit mobile phones that have an integrated IC-chip with electronic money in it (based on Sony's Felica Smart Card). The new joint venture will license the contactless technology out to third-party businesses, such as public transportation operators, retailers and event organizers.
New billing... what's that ?
Yesterday I've had the pleasure to contribute to a seminar of TPG Post on new billing. You may wonder what that is.
Well, in New Billing a direct marketeer views the physical bill not as something alien and costly, but as an opportunity to once again reach the customer and further intensify contact. Given the animated discussions and case sessions at this seminar we may expect to hear more about this concept in the future.
Het Financieele Dagblad
Het Financieele Dagblad (paid access) reports that due to repeated raids, Rabobank will stop providing cash services in its branches in Utrecht. This is not to say that there are a lot more holdups than before. Last year we had 80 bank robberies and right now the counter stands at 68.
Tuesday, October 28, 2003
Napster to offer prepaid cards
CCN reports that Napster will offer prepaid cards as a means to pay for the music that users download. The Napster Card will cost $14.85, entitling the user to 15 downloads.
The company is aiming the card at teen-agers without credit cards and parents who want to give the gift of legal music downloads. The card features the familiar Napster "kitty" logo and is activated at the point of purchase.
So, with the end of the 'everything for free-era' on the Internet, we now see the rise of pre-paid mechanisms to allow controlled spending on the web.
The company is aiming the card at teen-agers without credit cards and parents who want to give the gift of legal music downloads. The card features the familiar Napster "kitty" logo and is activated at the point of purchase.
So, with the end of the 'everything for free-era' on the Internet, we now see the rise of pre-paid mechanisms to allow controlled spending on the web.
Monday, October 27, 2003
Belgium Argenta may offer current accounts in the Netherlands
Also in this weekends Financieele Dagblad: Belgium bank Argenta is about to enter the Dutch payments market. It will offer current accounts with a debit-card, Chipknip purse and a high savings interest rate. Argenta will use the intermediaries as their sales channel.
Two pin-codes for one debit-card?
The Financieel Dagblad reports this morning about an innovation by a former debit-card/pincode victim. Mr Jantoon Roos suggested to the banking sector the use of two pincodes on one debitcard. The pincode a and b would both be 4 digits long and be used in alternation. The second pincode would be chosen by the customer himself.
The banking sector has taken the idea into consideration but explained to the inventor that it would be technically too complex and that it would confuse the consumers. But the inventor seems keen on pursuing the idea, now that he has invested a couple of thousands euro's in Patent application.
What disturbs me in the article is that it might suggest that banks would not be willing to adopt good ideas that may reduce fraud. They do adopt those ideas, yet operating and designing retail payment systems is a little more complex than people may imagine. So the chances that an outsider comes up with a brilliant solution to such industry problems are close to zero.
The exception to this rule is of course the Memo-card; this is small piece of carton on which you may encode / hide the pincode by using a four-letter word in between a number of other four letter words.
The banking sector has taken the idea into consideration but explained to the inventor that it would be technically too complex and that it would confuse the consumers. But the inventor seems keen on pursuing the idea, now that he has invested a couple of thousands euro's in Patent application.
What disturbs me in the article is that it might suggest that banks would not be willing to adopt good ideas that may reduce fraud. They do adopt those ideas, yet operating and designing retail payment systems is a little more complex than people may imagine. So the chances that an outsider comes up with a brilliant solution to such industry problems are close to zero.
The exception to this rule is of course the Memo-card; this is small piece of carton on which you may encode / hide the pincode by using a four-letter word in between a number of other four letter words.
Way2Pay: 450 shops and 15.000 users
In its latest newsletter, Way2Pay states that it has 15.000 users and 450 shops. Especially the amount of shops connected is quite large for a product that has only gone live half a year ago. The tricky thing remains however the pricing for the consumer. Loading the Way2Pay wallet regularly costs 0,6 % of the load value, with a minimum of € 0,25 per transaction. These load fees are now being waved for a period of two months.
Earlier this year Rabobank announced it would introduce its own version of Way2Pay. I'm curious as to the pricing structure and load instrument that they've decided to use.
Earlier this year Rabobank announced it would introduce its own version of Way2Pay. I'm curious as to the pricing structure and load instrument that they've decided to use.
More and more euro-falsifications
Raad Nederlandse Detailhandel, an umbrella organisation for retailers, has announced that the quality of bank note falsifications is so good that false bank notes are difficult to detect at the point of sale. As a result, retailers may get stuck with false bank notes for which they receive no money when depositing it at the bank. Consequently Raad NDH has called for adapted reimbursement conditions.
The amount of false bank notes taken out of circulation was 145.153 in the first half year of 2002 and is 230.534 in the first half year of 2003.
The amount of false bank notes taken out of circulation was 145.153 in the first half year of 2002 and is 230.534 in the first half year of 2003.
Friday, October 24, 2003
Consultations of our Ministry of Finance
Quite a number of consultations are taking place in the Netherlands. And since it's not so easy to find the full list at the website of the Ministry of Finance I hereby provide the startpage for consultations (in Dutch) on:
-settlement
-publicatiebevoegdheid
-marktmisbruik
-Wet Financiële Dienstverlening
-trustkantoren
-markttoetreding banken
-publicatiebevoegdheid
-financiering toezicht
-herziening financieel toezicht
-toezicht accountants.
-settlement
-publicatiebevoegdheid
-marktmisbruik
-Wet Financiële Dienstverlening
-trustkantoren
-markttoetreding banken
-publicatiebevoegdheid
-financiering toezicht
-herziening financieel toezicht
-toezicht accountants.
Financial Action Task Force on money laundering: session of October 1-3, 2003
Our Ministry of Finance regularly informs us of the proceedings of the FATF meetings. This document (in Dutch) informs the parliament that the Netherlands will abide with the FATF 40 recommendations. It is observed that Nauru is the country with dubious 'shell banks' in the hands of criminal organisations. Banks and supervisors are therefore urged to take all possible precautions in their contacts with any bank from that country.
Thursday, October 23, 2003
Scan, pin and go at the Hema !
Reacting on the previous post about the Chipknip goody at Albert Heijn, Ron Onrust was so kind as to send me some pictures of a new Dutch retail payment development, that he witnessed at the Hema-branch in Noordwijk:
Scan, Pin and Go
Additional research on the web shows that it is a NCR product, installed by BK Vision. It has been in use since februari 2002. See also the images below.
Scan, Pin and Go
Additional research on the web shows that it is a NCR product, installed by BK Vision. It has been in use since februari 2002. See also the images below.
Tuesday, October 21, 2003
Great goody for Chipknippers at Albert Heijn...
This week Albert Heijn gets a lot of media attention because the food chain has started a price war in retail. But to me, something else is more interesting. Todays field research learns me that all customers that use the chipknip will receive a free key fob with a silver coin in it with the brand Chipknip. Now why is this and what's the use ?
Well, Chipknip and Albert Heijn have agreed to promote the use of the Chipknip for small payments in the shop. This eliminates the need for coins, but then again, we often need those coins to unlock a shopping cart for use in the shop. So if we are to use the Chipknip, Chipknip might as well provide a solution, a coin in the format of the 50 eurocent, for future use in the Albert Heijn shopping cart. Which is exactly what Chipknip en Albert Heijn do, provided that the shopper pays with Chipknip (and perhaps gets his first time Chipknip-experience).
So although I don't often get excited in the supermarket at the point of sale, this time I really admired the work of the marketing team that developed this promotion. It's very well focused, targeted and fully in line with the need to make payment and shopping as easy as possible. Excellent work !
Well, Chipknip and Albert Heijn have agreed to promote the use of the Chipknip for small payments in the shop. This eliminates the need for coins, but then again, we often need those coins to unlock a shopping cart for use in the shop. So if we are to use the Chipknip, Chipknip might as well provide a solution, a coin in the format of the 50 eurocent, for future use in the Albert Heijn shopping cart. Which is exactly what Chipknip en Albert Heijn do, provided that the shopper pays with Chipknip (and perhaps gets his first time Chipknip-experience).
So although I don't often get excited in the supermarket at the point of sale, this time I really admired the work of the marketing team that developed this promotion. It's very well focused, targeted and fully in line with the need to make payment and shopping as easy as possible. Excellent work !
Can existing payment networks meet future needs?
This was the major question at a conferency by the Chicago Federal Reserve Bank.
The conference summary is available here.
What I appreciated in the summary:
Payment innovations may take longer to adopt than innovations in other industries because of the need to balance the interests of multiple agents—consumers, merchants, financial institutions, and networks. In addition, payment providers must often operate both legacy and new systems side by side, increasing costs in the short run.
The conference summary is available here.
What I appreciated in the summary:
Payment innovations may take longer to adopt than innovations in other industries because of the need to balance the interests of multiple agents—consumers, merchants, financial institutions, and networks. In addition, payment providers must often operate both legacy and new systems side by side, increasing costs in the short run.
Visit of Her Majesty Queen Beatrix to ECB
Today our Queen Beatrix is visiting the European Central Bank (press release). I take it this is a formal 'Goodbye and Thank You-visit' to thank Wim Duisenberg for his efforts as the first President of the ECB.
Monday, October 20, 2003
Credit-cards repayment rates too high....? !
News Independent reports:
The Chief executive of Barclays - the largest credit card provider in Britain - said yesterday that he would not use a Barclaycard to borrow money because the repayment rates were too high.
Matt Barrett, one of Britain's best paid executives who earned £2.7m last year, made the unexpected comment to MPs on the Treasury Select Committee, which is examining the consumer effects of the credit card industry.
The Chief executive of Barclays - the largest credit card provider in Britain - said yesterday that he would not use a Barclaycard to borrow money because the repayment rates were too high.
Matt Barrett, one of Britain's best paid executives who earned £2.7m last year, made the unexpected comment to MPs on the Treasury Select Committee, which is examining the consumer effects of the credit card industry.
Friday, October 17, 2003
No real risk for money laundering in electronic payment systems !
Today, Ton Schudelaro will defend his dissertation on electronic payment systems and money laundering (see this Dutch press-release). His work is voluminous and provides a good overview of the topic. His analysis is brief and clear: there is far too much of a hype about money laundering in new electronic payment systems. Reality is that current countermeasures are sufficient and illegal whitewashing is not a real threat. This analysis nicely counterbalances the fear-driven Financial Action Task Force Fraud measures.
Thursday, October 16, 2003
Maersk Sealand and Citibank announce on-line B2B payment solution
Erwin Boogert was so kind as to point out this article in The China Post that discusses a new B2B payment service by Citibank:
Citibank developed a customized implementation project to meet Maersk Taiwan Ltd's requirements by incorporating the advantages of Citibank's on-line banking and financial service. CitiConnect Online Service is part of Citibank's EBPP (Electronic Bill Presenting and Payment) architecture, which covers complete on-line solutions from presenting bills, managing disputes, and online payments.
Through the integration of CitiConnect Online Service and Maersk Sealand's e-commerce website, Maersk Sealand customers in Taiwan may pay from non-Citibank accounts and even release payments after banking hours to proceed with the printing of Bills of Lading.
Citibank developed a customized implementation project to meet Maersk Taiwan Ltd's requirements by incorporating the advantages of Citibank's on-line banking and financial service. CitiConnect Online Service is part of Citibank's EBPP (Electronic Bill Presenting and Payment) architecture, which covers complete on-line solutions from presenting bills, managing disputes, and online payments.
Through the integration of CitiConnect Online Service and Maersk Sealand's e-commerce website, Maersk Sealand customers in Taiwan may pay from non-Citibank accounts and even release payments after banking hours to proceed with the printing of Bills of Lading.
Subscribe to:
Posts (Atom)