Boston, MA, USA
May 7, 2008

Disruption in the Payments World

Table of Contents

Return to report Abstract

Executive Summary 3
Introduction 5
The Tornado: Interchange 7
  Rewards -- The Last Straw 11
The Aftermath 15
  Ability to Surcharge 15
  Right to Discriminate 16
  Price Caps 17
  The Likely Outcome 17
The Rising Threat of Alternative Players  19
  Criteria for Success 20
  Rifts in the Payments Barrier 22
  Nontraditional Competitors Entering the Fray 25
  Traditional Incumbents 26
  Alternative Takes on the ACH 28
  Online Payments and the ACH 30
  Potential Impact of Alternative Payments 33
Decoupled Debit 35
  Decoupled Benefits 37
  Decoupled Challenges 40
  Current Initiatives 41
Conclusion 44
 

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