What We’re Reading This Week
Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below.
- PayPal to Extend Use of Mobile Wallets
PayPal Inc. is pushing to expand its use of mobile wallet services as it stakes out turf in the mobile payments industry. The eBay Inc. subsidiary expects payments volume on mobile devices using PayPal’s service to more than double this year, surpassing $2 billion, Sam Shrauger, vice president of global products and experience, said during a presentation Thursday at eBay’s analyst and investors day. John Donahoe, the president and chief executive of eBay, said he expects the PayPal business to become bigger than eBay in the next three to five years. “We can do for mobile payments exactly what we did for online payments,” Shrauger said, adding that the company’s connections to payment networks, banks, merchants and consumers can harmonize all the “disconnected systems” needed to facilitate mobile payments.
- Two Tech Trends Your CU Cannot Afford To Miss
Although a large percentage of Americans still favor paper statements and prefer to pay their bills via traditional mail, the adoption of e-billing solutions is on the rise. According to the NACHA-The Electronic Payments Association, the number of direct payments increased to 2.75 billion in 2008, an increase of almost 5%. Additionally, more than half of all U.S. households use direct payment for at least one recurring payment. One reason consumers are turning to online payment methods is to protect them from fraud, misuse of personal information, and identify theft. Many of today’s electronic billing solution providers offer a number of security features including data confidentiality, biller authentication, and non-repudiation of bills.
- The 6 Levels Of Proactive Support
I’ve noticed a lot of discussion lately around proactive support. A host of technologies (analytics, alerts, mobile, etc.) are creating new ways for companies to better help customers with their problems. But the discussions often talk about “proactive support” as if it’s one thing. Proactivity is not a single attribute; it’s actually on a spectrum. To make that clear, I’ve identified six different levels of proactive support. Here’s an example of different levels of support, from the least to the most proactive, for a customer who’s flight was cancelled.
- Men Vs. Women: Financial Management Differences
Men and women are not always on the same page when it comes to financial management. In a survey by the wealth management unit of PNC Financial Services Group, results showed some large discrepancies between genders with regard to the impact of the recession on financial planning. PNC’s survey complements data by other banks such as Charles Schwab which has noted some broad financial management differences among gender. However, PNC’s findings can be very monumental for couples because they highlight the fundamental need for couples: open communication between spouses is critical to financial harmony.
- The 43 Financial Sites With the Most Unique U.S. Visitors in January per Compete
Every month, Compete publishes a list of the 1000 websites with the most U.S. monthly unique visitors. In January, 43 were financial sites (banking, payments, brokerages, cards, credit reports, lending, or personal finance). Of the 43, 14 were banks. Intuit was number four on the list behind PayPal, Chase and Bank of America but ahead of Wells Fargo.
- Google’s Schmidt Sees Payments as a Big Business
Eric E. Schmidt, Google’s chief executive, thinks wireless transactions, enabled by the coming wave of Android smartphones outfitted with near-field communication technology, could turn into a serious business for the company. Mr. Schmidt, speaking to a small group of reporters late Tuesday after his keynote presentation at the Mobile World Congress here, said Google could work with advertisers to “extend offers to phones with NFC chips.” Advertisers, he said, were interested in combining an ad and an offer, presumably at the point of sale. Google is not looking to get into deals with exchanges for terminals and other areas that credit card companies are hoping to dominate, he said.
- The Great Customer Courtship — Banks Are Rolling Out New Incentives to Win Your Business; Here’s a Guide
Who knew checking and savings accounts were so sexy? Historically low interest rates, tough new capital requirements and heightened competition from brokerage firms are prompting banks to dangle juicy incentives to a group of customers that not long ago were considered wallflowers: depositors. The nation’s top 15 banks by deposits are promoting high-interest savings accounts aimed at rewarding customers for opening a checking account. The 10 biggest banks also are offering borrowers cash back for opening a new checking account. And the 15 biggest banks are embracing “relationship products,” throwing in rewards like high rates on certificates of deposit, mortgage discounts and investment advice to people who keep multiple accounts under one roof.