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OP-ED: To the New Congress: Beware of the Durbin Amendment’s Failures
With the Covid-19 pandemic still imposing a huge financial weight on the nation’s small businesses and families, many legislators are understandably eager to pursue policies they feel will ease that burden. But lawmakers must be careful that they are looking at policies that really will help. Unfortunately, some sectors—in this case, retail—are using the crisis to push a decade-old agenda that has done, and would do, nothing to help struggling Americans and small businesses. In fact, their agenda could hurt. Continue Reading
OP-ED: The Rise of Contactless Payments Will Pay Long-Term Dividends
The COVID-19 pandemic has led the United States down a fast-track of innovation in almost every sector. Seismic levels of disruption brought on by this public health crisis have ushered in an era of advanced technological adoption that once seemed years away—but is now the status quo. From the shift to EMV-enabled payments cards and the rapid expansion of contactless transactions, continued investment in the future of emerging payments technologies will only better serve the demands of consumers. In the case of mass transit, adoption of new contactless electronic payment technology provided great economic value to struggling mass transit systems while providing consumers with a new level of safety and convenience, increasing their confidence in mass transit systems as we adapt to and recover from the pandemic. Over much of the last year, tens of millions of Americans have shifted preferences, choosing to have their groceries delivered, work remotely, and … Continue reading
OP-ED: How The Payments Industry Is Working To Improve Financial Inclusion
Financial inclusion is receiving increased attention in the U.S. and worldwide as governments and the private sector look to advance solutions that ensure consumers have access to vital financial services to manage their everyday lives. Financial inclusion is both quantitative and qualitative. It is not just about getting money, credit and financial services into the hands of low-income or vulnerable populations. It also means guaranteeing that services are affordable and appropriate for the populations in question. This may mean financial education, “microfinance” or assisting individuals in establishing a credit history through the use of appropriate alternative data. Continue Reading
OP-ED: Contactless payments provide protection for both businesses and consumers
The holiday shopping season is upon us, and amid the COVID-19 pandemic, businesses are seeking to adjust to the “new normal” of retail sales. Due to the increasing prevalence of e-commerce, concerns over data security and fraud are more pressing than ever. Driven by the need for safe, secure, and contactless payment options, consumers and small business owners are relying on the electronic payments industry to safeguard their financial information and make transactions. Luckily, the industry hasn’t hesitated to rise to the challenge. Continue Reading
OP-ED: The Payments Industry’s Role In Cybersecurity
The Covid-19 pandemic has fast-tracked America’s dependence on technology, with more people digitally connected than ever before. As a result, reports of cyberattacks have skyrocketed in both frequency and scope. Daily online breaches in the U.S. have up to quadrupled since the start of the pandemic, according to the Federal Bureau of Investigation, leaving no industry unscathed. One step that organizations can take to combat these growing attacks is to support National Cybersecurity Awareness Month, which takes place each October. Championed by the U.S. Department of Homeland Security and the National Cyber Security Alliance, this is a collaboration between government and industry to make sure every American has the resources needed to stay safe and secure online. Continue Reading
OP-ED: A decade later, it’s time to repeal the failed Durbin Amendment
July marks the 10th anniversary of the Dodd-Frank Act, which includes the controversial Durbin Amendment—a policy that has done nothing but harm consumers and financial institutions since its inception. Congress passed the Durbin Amendment based on assertions that lowering debit card interchange fees—small charges merchants pay banks when a customer makes a purchase through a debit card—would allow merchants to lower prices for consumers while at the same time not harming credit unions and community institutions. The payment card market, however, like the popular reservation platform Open Table, is a two-sided market with two sets of customers: consumers and businesses. Government cannot intervene on behalf of one group of customers without taking away from the rest. Continue reading
OP-ED: Is There a Place for Cash Payment in a Post-COVID-19 World?
The COVID-19 pandemic has upended virtually every single industry and government alike, creating new challenges for how we go about our daily lives. As a result, trends have emerged from this new reality including how merchants serve their customers in a safe and reliable way, among them a rising reliance on electronic payment methods. Almost overnight, electronic payments became the preferred method of payment among small businesses and their customers. This is largely due to the hygienic benefits that contactless methods offer, as cash requires close contact and exchanging of property, both of which increase transmittance of the virus and should be avoided if possible. Continue Reading
OP-ED: The Pandemic Lifeline for Small Business
In the United States, there are approximately 30.7 million small businesses employing as many as 60 million Americans. According to the Small Business Administration, from 2016 to 2019 just under 2 million new small businesses were created and as a result, 3.1 million jobs. However, due to the outbreak of the coronavirus, small businesses have been hit exceptionally hard, as more than 41 million Americans have lost their jobs in just 10 weeks. Across the nation, non-essential businesses had to shut their doors to help flatten the curve. While it may be essential from a public health perspective to do everything necessary to limit the spread of this virus, we cannot overlook the devastating effect that mitigation efforts have had on small businesses. Continue Reading
OP-ED: Contactless Payments Are Paying Off for Consumer Health
The onset of the novel coronavirus has caused a seismic shift in the daily lives of Americans. While recent data in the fight against this pandemic are encouraging, we’re not out of the woods yet, and we will be slow to return to life as we once knew it. Social distancing, working from home, and a shift to online shopping will likely continue. Small businesses are turning to curbside delivery, grocery services are offering pick-up or delivery, and retailers are heavily reliant on online purchases. But as consumers begin to shift back to making purchases in person, protecting their health will be paramount. Luckily, the financial institutions that support the electronic payments system made investments long before this crisis that will help keep people safe and their funds secure. Continue Reading
OP-ED: Electronic Payments Industry Rallies Around Consumers Amidst Coronavirus
As the world grapples with COVID-19, consumers are being forced to adapt their day-to-day routines. Millions of Americans are choosing to have their groceries delivered, learning to work remotely, and relying more heavily on online banking and payment systems. We are even seeing merchants transition to a “card only” payment method for fear that the virus could spread through the use of cash. Cameron’s Deli in New York is one of many restaurants taking this safety precaution and asking its customers to pay through contactless methods such as Apple Pay or Google Pay. In today’s climate, contactless payments should no longer be the secondary or tertiary form of preferred payment, especially for older generations or people with underlying health conditions. As a society faced with a pandemic, we are embracing the virtual economy, but we must be vigilant while doing so. Continue Reading