One Year Later... The Aftermath of the 'Wal-Mart' Lawsuit
Dove Releases Findings from 2004
ATM Deployer Study
Navigating the New Payments Landscape: What Credit
Unions Need to Know
Do you know someone with deep
expertise in payments strategy?
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This time last year, the payments industry was reeling. Visa and MasterCard had just settled a class-action lawsuit that had been raging for seven years, and suddenly the structure, economics, and dynamics of the debit industry were thrown into uncertainty. Would retailers stop accepting debit? How would financial institutions react?
This issue of On Payments examines what has happened—or not happened—in the past year, and takes a look at the future of debit from the vantage point of ‘one year later’.
To sign up for an online subscription to On Payments, please click here.
One Year Later... The Aftermath of the 'Wal-Mart' Lawsuit
In April 2003, the debit industry was shocked when first MasterCard and then Visa settled a landmark merchant class-action lawsuit that had been raging for seven years. Debit as we knew it was forever changed. Or was it?
Immediately following the settlement, banks and credit unions initiated various reviews to understand the implications of the resolution and the likely impact on their business. This paper recaps some of the ‘received wisdom’ from the past twelve months and how some speculated the debit market might change.
With the benefit of hindsight, most financial institutions’ concerns were misplaced – revenue did not collapse, acceptance did not disappear, and debit card usage did not suffer as a result of the settlement. In addition, most merchants have seen no sustained benefit.
The debit market today is stronger than ever. More consumers initiate more debit transactions in more stores than ever before, and there are no signs of a slowdown. In 1999, 21% of all in-store payments were made using debit cards; by last year, debit’s share of in-store payments had grown to 31%. Moreover, much of this growth has been at the expense of cash and checks, helping improve the overall efficiency of the U.S. payments system.
To view the full article, click here.
Dove Releases Findings from 2004 ATM Deployer Study
Building on the 1999 and 2002 Studies, the 2004 edition of Dove’s ATM Deployer Study—sponsored by STAR, PULSE, and CO-OP Network—is now available. Based on a survey of over 144,000 ATMs, the 2004 ATM Deployer Study represents the most definitive assessment of the state of the ATM industry.
The feedback from ATM deployers points to a paradox: at the same time as the industry is growing (more transactions on more ATMs), individual deployers are finding it increasingly difficult to support their ATM programs financially. Banks, credit unions and ISOs all report declining transactions per ATM, the key driver of revenue, with limited ability to further reduce costs.
For an overview of the Study’s key findings, click here.
Navigating the New Payments Landscape: What Credit Unions Need to Know
On behalf of CO-OP Network, Dove recently authored a comprehensive white paper that maps the changes taking place in the payments industry and explores the strategic implications of those trends for credit unions. The 200-page white paper was presented at CO-OP Network's Annual Shareholders' Conference in Phoenix, Arizona on May 7, and provides insights into the legislative developments, competitive pressures, consumer preference shifts and technology advances that are challenging current payments business models.
"Between Visa and MasterCard settling the merchant lawsuit, the passage of Check 21 and First Data's acquisition of Concord EFS, the payments arena has been altered significantly in the last year," said CO-OP Network CEO Robert Rose. "This industry change, coupled with the ever-increasing consumer preference for electronic payment options, makes it imperative to provide member credit unions with the information they need to develop sound payments strategies."
To read the executive summary of Navigating the New Payments Landscape, click here.
Do you know someone with deep expertise in payments strategy?
Dove is currently looking for senior level consultants with financial services and/or consumer payments experience. Our clients include leading banks, technology providers, EFT networks and card associations, for whom we address important strategic issues in payments and retail banking.
For a more complete description of the position and what we are looking for from applicants, click here.