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More to the point of the necessity of merchant and bank cooperation from noted payments industry consultant and pioneer John MacAllister (MAG Quarterly- Volume Three, Issue Three)

By John MacAllister, Principal, Dorado Industries 

September 3, 2015

Unfortunately, it seems we’re burdened with all three for years to come.  Unless, of course, banks and merchants recognize the folly with which consumers must deal and take a bold step forward.  Sadly, old practices have come to the forefront as both banks and merchants were given the opportunity five years ago to change things in the world of mobile payments.  “Long term beta” has become a new catch phrase for banks, merchants, and other mobile payments players as they struggle to pull together both sides of the issuer-acquirer paradigm because they know a two-legged stool doesn’t set well.  Even the vaunted market leader, Apple Pay, is seeing waning transaction growth rates as consumers realize that there’s more to life than clothes from American Eagle, shoes from Footlocker, and BLTs from Subway.  Indeed, the frustration level over the lack of collaboration between bank interests and merchant interests created a market void that Loop Pay was able to drive a truck through and Samsung hopes to capitalize on.  Meanwhile, our “my way or the highway” approach to payments enablement is keeping consumers away unless we’re in the coffee or donuts business and driving millennials nuts.  Clearly, unless we all decide to blink collectively and get this done right, we’re going to be forced to live with the Big Three of useless things for decades to come and nobody wants that.