LAS VEGAS--Ten years from now, members of the acquiring industry may have fond recollections of the nations transition to mobile payments, says Brian Mooney, CEO of Bank of America Merchant Services.
We will look back and say, I was there when we changed peoples lives, Mooney told an audience here last week at Transact 14, the new name for the Electronic Transactions Association trade show.
That moment will arrive when consumers, merchants and banks all realize the benefits of mobile payments, Mooney says.
Profits drive change, he observes, maintaining that we are on the cusp of an era of mobile payments.
His comments came during a panel discussion that seemed like an informal gathering of long-time friends that just happened to occur on a stage and have the name CEO Roundtables--Acquirers.
ETA CEO Jason Oxman acted as genial host and gentle questioner for panel, which also included Debra Rossi, CEO of Wells Fargo Merchant Services LLC, and Donald Boeding, president of Vantiv.
The panelists view the onset of mobile payments as just one of the industrys new areas of opportunity. Opportunities are also arising because of big data, loyalty programs and the chance to work with the tech companies now entering the payments business, Rossi says.
The most exciting time in the payments industry is now, she says.
Catalysts for change include cloud computing, smartphones and electronic tablets, notes another panelist, Donald Boeding, president of Vantiv.
Technology is enabling acquirers to wrap payments in other services, Boeding says, providing the example of Uber, the company that makes it easy to take hail a cab in a remote location because of a wealth of combined services that Uber offers.
Our business is no longer just the transaction, he maintains.
And promoting those value-added services will demand that the capabilities of the industrys salespeople rise to meet the challenges, Boeding cautions.
Meanwhile, as opportunity blossoms in acquiring, the nations legislators and regulators are taking a closer look for potential problems with transactions. The industry can head off rule-making by demonstrating that its not taking on risky merchants, the speakers agree.
Smaller independent sales organizations can show their commitment to limiting risk by following guidelines the ETA issued at the conference, suggests Boeding.
Small ISO should take on risk management themselves instead of relying on the big acquirers to handle it alone, he advises.
Thats why ISOs should not take offense at risk-related questions from the acquiring banks, Mooney says.
It doesnt mean that we dont value you, he notes.
Expect regulators to take a hard-line approach, questioning why acquirers cant check the website of every account, Rossi says.
Saying, I didnt know, is not going to cut us any slack with regulators, she cautions.
To cooperate with regulators, Visa and MasterCard are cooperating with each other, and the rest of the industry should follow that lead, according to Boeding.
If we dont, were going to get someone to come in and help us with this, he warns, referring to government intervention.
The governments interest in the industry has intensified since the high-profile data breach at Target during the holidays, the speakers note.
While expressing sympathy for Target and the consumers caught up in the data theft, the speakers cautiously point out an upside to the crime: consumers and merchants may finally catch on to the magnitude of the problem.
That new awareness could help ease the transition to EMV in the United States, Rossi maintains, adding: Its the time. Finally.
As a result, merchants are approaching Bank of America Merchant Services with security questions, says Mooney. The discussion with merchants has changed from saving a minute fraction of a cent on transactions.
Theyd gladly write a check for $100,000 to avoid a breach, he says of the shift in attitude among big merchants.
The merchants should realize that Canadas switch to EMV chip cards, which help protect card data, has prompted data thieves to focus on the United States, says Rossi. EMV also moves fraud from stores to e-commerce, she says.
But the U.S. transition to EMV still presents challenges, says Boeding. Some large retailers assert that its physically impossible to meet the card brands EMV deadlines because of their large and complex IT departments and their many checkout lanes scattered across huge regions.
Smaller merchants have a lot less to deal with in the transition, and helping them make the change offers ISOs an opportunity to establish or reaffirm their role as consultants, he says.
Its typical of the opportunities change can bring, the speakers say.