Innovation in alternative payment products has been primarily outside the banking world. Which is exactly why banks should look to HomeATM's secure technology for online banking log-in, real-time money transfers and credit, debit and PIN debit transactions. Otherwise...
Research consulting firm Celent estimates that by 2012, banks will see a decline of $1.2 billion in interchange revenue due to increasing acceptance of online alternative payments."
Banking institutions should be adopting payment options of their own – for their customers as well as merchants. HomeATM provides that capability with our PCI 2.x Certified PIN Entry Device. It would help banks to retain customers and expand their merchant offerings.
The truth is, HomeATM is NOT an alternative payment at all. Our transactions are as mainstream, thus conventional as a brick and mortar transaction. Banks should be embracing what we do because we provide the safety net against the $1.2 Billion interchange revenue falling to alternative payment mechanisms.
The bank issues the card, the bank issues the PIN. All that is left to finish the equation is for the bank to issue the Card and PIN Reader, and there is only ONE PCI Certified Device in the world to choose from.
Once equipped with our device, consumers are enabled to use mainstream...i.e., "conventional" (card present) approach to eCommerce transacting, thus eliminating the leading cause of fraud...which, happen to be "Card Not Present" transactions. How do we eliminate CNP fraud?
By changing the web environment from CNP to Card Present. That would do it, would it?
In addition, based on the fact that all transactions are done outside the browser space, (our device instantaneously Tripe DES and DUKPT encrypts both the Track 2 data and the PIN inside the device so that the data is NEVER in the clear) banks would provide their customers with a secure environment (separate machine) with which to conduct e-Commerce and online banking.
Security Creates Trust, Trust Creates Peace of Mind,
Peace of Mind Creates Loyalty, Loyalty Provides Security
Additionally, a secure environment would attract those fearful about the lack of security, vastly improving the customer acquisition model and thus value proposition of our technology.
"Conventional" wisdom dictates that banks would not only retain a larger share of the $1.2 Billion they are projected to lose in interchange revenue, but they would increase the number of transactions, thus revenue from said transactions, by injecting a badly needed mainstream approach to online banking, by replicating ATM authentication, and eCommerce, by replicating brick and mortar...credit, debit and PIN debit transactions.)
Oh, did I happen to mention that Celent also estimated that by 2013, online payments will climb to $268 billion and 30% of those payments will come from alternative payment sources. (that projects to over $75 BILLION in LOST revenue to banks)
This increased market acceptance will certainly move alternative payments into the mainstream, and we can provide banks with the means to help them prevent that from happening.
Instead of consumers helping to move alternative payments to the mainstream, HomeATM can help banks move mainstream to the consumers!
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