Emerging Retail Payment Technologies
This section discusses several emerging retail payments technologies that financial institutions are implementing or considering. The success of emerging retail payment methods depends upon four key drivers: reliability, cost, convenience, and speed. In terms of the preferences by consumers, merchants, and payment processors, the key drivers are technological advances, convenience, and lower transaction costs. The evolution of such preferences is facilitated by traditional financial institution relationships and established payments networks and infrastructure. Internet, mobile, and contactless payments may be used alone or together to facilitate electronic transactions, further reducing the use of paper checks. The use of currency is expected to retain some appeal because of its anonymity; however, the substitution of electronic payment vehicles for cash micro payments (transactions under $5.00) is expected to increase.
While the environment for emerging payments is highly dynamic, the most important emerging payments today are electronic bill presentment and payment (EBPP), P2P, A2A, and stored-value instruments. Several more recent emerging payment mechanisms are contactless payments, biometrics, and proximity payments as well as the format and transmission mechanics used to effect these payments.
Online Person-to-person (P2P), Account-to-Account (A2A) Payments and Electronic Cash
Contactless Payment Cards, Proximity Payments and Other Devices