Javelin Strategy’s Aleia VanDyke recently attended the BayPay Forum event titled, “Impact of New Interchange Ruling on Payment Innovations” and authored an insightful post on keynoters’ thoughts surrounding pending legislation and the evolution of payments innovations. VanDyke thought Bling Nation’s co-CEO Wenceslao Casares said it best—“ that true payments innovation can’t just be a repackaging of old technology, but has to be truly novel and fulfill a real consumer need. The question is: what will the innovation be?
In the not too distant future, we expect to see these questions answered with new solutions, so stay tuned. However, what could have a significant impact on payment innovations is the pending New Interchange Rules legislation, which the marketplace is keeping their eyes and ears focused on before they make their next move. In turn, VanDyke leaves us with two concluding thoughts: “issuers will continue to be key payments players (look to other nations for examples), but change is forthcoming. Although this legislation is undoubtedly painful to debit issuers, I’m confident that banks can evolve their current practices in ways that will bring in revenue and provide benefits to consumers or businesses.”
What do you think of the pending Interchange Rules on Payment Innovations?