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PayPal can thrive as a standalone company

January 9, 2012

As many analysts and investors have pointed out, PayPal and eBay need to separate.  PayPal is brilliantly positioned for growth, and eBay can’t help but keep PayPal from achieving its potential.

Brazilian Banking Powerhouses May Be Eyeing US Financial Institutions

August 12, 2011

Having come to the brink of financial disaster several times in recent years, Brazilian banks are now in a position of strength.  US financial institutions may make the perfect acquisition for Banco Itau or Bradesco.  www.paymentsdeepdive.blogspot.com

Setback on Debit Interchange Will Accelerate Prepaid Issuance and Cross-selling

June 8, 2011

Analysis of:American Banker | www.philliou.com

Durbin Defeats Tester Effort to Delay Fee CapIn a nail-biting conclusion after weeks of fierce lobbying by bankers and retailers, the Senate defeated a bill Wednesday that would have delayed the Federal Reserve Board's proposal to cap interchange fees for debit cards.Although none of our issuer clients were truly surprised by this outcome, it stings nonetheless.  Impact:  HUGE push by debit issuers into Reloadable Prepaid Cards and intensified cross selling of products.  Will discuss on weekly client calls.

Storming the $5 Trillion In-Store Payments Fortress

May 3, 2011

Analysis of:Did Wal-Mart Crics Make Their Case at Hearings? | www.americanbanker.com

In-store payments in the US represents a $5 trillion payments pool. As described below, every player in the industry is pursuing it.

JPMorgan Chase and Discover Financial Services: a Winning Combination

January 18, 2011

Analysis of:JPMorgan Chase and Discover Financial Services - a winning combination. | paymentsdeepdive.blogspot.com

There are at six (6) reasons why a JPMC takeover of Discover Financial Services would make perfect sense.

CUT IN DEBIT CARD INTERCHANGE WILL DRIVE INCREASED DEMAND FOR CREDIT AND HYBRIDS

December 17, 2010

Analysis of:WINNERS AND LOSERS WITH DEBIT INTERCHANGE CUTS | paymentsdeepdive.blogspot.com

FAST FORWARD: CUT IN DEBIT CARD INTERCHANGE WILL DRIVE INCREASED DEMAND FOR CREDIT AND CREDIT HYBRID PRODUCTSMasterCard and Discover Financial Services Will Win while Visa, Bank of America, JP Morgan Chase and Wells Fargo lose.

Prepaid Card Industry Needs Greater Self-Regulation and Internal Controls

December 2, 2010

Analysis of:American Banker: Lessons from the Kardashians (December 2, 2010) | paymentsdeepdive.blogspot.com

The card industry has only scratched the surface with prepaid cards. Today's focus on the unbanked will greatly expand into government benefit payments, IRS issued tax refunds, premium products and a full replacement to paper checking accounts. Mobile and NFC will be a catalyst for Visa and MasterCard prepaid products. With such an opportunity, it is critically important that the industry does not allow sloppy operators to put a bad name of the category - the industry has too much to lose.

Discover's Fast Follower Strategy in Contactless is a Winner

November 29, 2010

Analysis of:Discover Begins Rollout of Contactless Payments | paymentsdeepdive.blogspot.com

Monday, November 29, 2010Visa and MasterCard have spent millions over several years to develop the market for their MasterCard PayPass and Visa PayWave solutions only to have Discover (DFS) leap from nowhere to become a highly visible and exciting player in the contactless device market.

Bank of America launches contactless sticker initiative = MOMENTUM

November 22, 2010

Analysis of:Bank of America Mobile Payments Stickers | paymentsdeepdive.blogspot.com

Bank of America launches contactless sticker initiative. The US is definitely on the path to contactless payments.

Telcos + Discover Financial + Barclays Joint Venture Appears to have Substance

November 16, 2010

Analysis of:Verizon, ATT, TMobile, Discover Financial Services Mobile Payments Venture Names CEO | www.bloomberg.com

Bloomberg 11/16/10:Abbott’s hiring “should definitely cause MasterCard and Visa to take this initiative very seriously,” said Philip Philliou, at payments-industry consulting firm Philliou Selwanes Partners in New York. “You have someone who understands consumer payments, as opposed to this being someone from the telecom industry.”

Could the Chinese payment network China Union Pay acquire a US payment network?

November 15, 2010

Analysis of:China Investment in General Motors | www.reuters.com

Could the Chinese payment network China Union Pay (CUP) acquire a US payment network such as Discover Financial Services? I have had that conversation with several bankers over the past 2 years. My take is that CUP could make that acquisition so long as they leave Discover Bank and its' card portfolio alone and just acquire the network. Although I am not suggesting that CUP is best acquirer of DFS, I am certain that it would be a gamechanger for the global payments industry.

Discover Financial Services is finally starting to get noticed

November 3, 2010

Analysis of:Discover: Analysts New Targets | paymentsdeepdive.blogspot.com

Did anyone notice that Discover Financial Services hit a 52 week high? Barclays Capital (BCS) raised their estimates on DFS to $23 from $20 as positive credit trends pave the way to normalized EPS. Although the directionally correct, Wall Street is still not factoring in the value of the Discover "network."

$300 Million for Revolution is Perplexing

November 18, 2009

Analysis of:American Express Says It Will Buy Revolution Money | www.bloomberg.com

It was only 8 months ago that Ted Leonsis said that the post-money valuation of Revolution Money is less than $200 million (WSJ April 6, 2009). As I remember thinking that number was wildly inflated at the time I was truly shocked to read about $300 Million purchase price.

Nothing is Risk Free: Reaction to Visa (V) and MasterCard (MA) earnings reports

November 7, 2009

Analysis of:2nd UPDATE: Visa Swings To 4Q Pft; Announces $1B Shr Buyback | online.wsj.com

Very real risks to both Visa and MasterCard are often glossed over by analysts. It is flawed to assume that their business is immutable and “risk free.” Both companies need to anticipate new market entrants and continue to evolve and innovate. Very real competitive threats abound.

Helping retailers earn more profit on their most profitable transactions?

October 19, 2009

Analysis of:Interchange Fees Step Into the Spotlight | online.wsj.com

Sensing an opportunity to benefit from anti-banking sentiment in Washington, the National Retail Federation and other retailer lobbying groups have intensified their efforts against the payments industry. Retailers have skillfully cloaked their agenda to reduce the cost of accepting credit card payments in the wool of a consumer rights argument. Will legislators be fooled by it?

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