Fast Facts: Student Loans

January 22, 2013
/   Insights

The Financial Services Roundtable recently released another iteration of its Fast Facts, reliable, bullet-point research about issues facing the financial services industry. Topics span TARP, Dodd-Frank, insurance, lending, retirement savings and more.  Below are some updated Fast...

Cause and Effect: If you build it, will they come?

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/   Spotlight

Many financial institutions assume that digital banking is lucrative because the most valuable customers happen to bank online. While there is certainly a correlation between online bankers and higher profitability, quantitative evidence suggests that...

Intuit 2020 Report: The Future of Financial Services

April 11, 2011
/   Insights

Today, Intuit released the latest edition of the Intuit 2020 report, Intuit 2020 Report: The Future of Financial Services, which identifies and examines four key trend areas that will  transform the financial services industry...

The Top 10 Trends in the Digital Banking Industry

December 18, 2013
/   Spotlight

2014 is rapidly approaching and as the year wraps, the Digital Insight team has pulled together the top 10 trends in the digital banking industry based on data and trends from studying financial institutions....

Small Business: Perception vs. Reality

November 21, 2012
/   Insights

In the most recent election cycle, like most others before it, the one sector of the economy that got the most attention was small business.  This is the future, we were told by every...

Industry Perception, Optical Delusion

January 14, 2013
/   Insights

In Washington, they talk a lot about ‘optics.’ This has nothing to do with regulatory scrutiny, or government mandates on eyeglasses. It has to do with perception—how something looks, the way a particular story...

Social Banking: Blessing or Curse?

August 1, 2012
/   Insights

While the topic of Facebook and banking has generated plenty of heat (though not necessarily a lot of light), the debate seems mostly focused on two broad issues: The much-maligned IPO, and the notion...

Financial Literacy Month: How are you celebrating?

March 22, 2013
/   Insights

With April approaching, it’s almost time to kick off Financial Literacy Month! Strongly supported by the United States Congress and the Financial Literacy and Education Commission, Financial Literacy Month aims to promote the importance...

2014 marked the year we became all too familiar with terms such as data breaches, data protection and payment solutions, thanks to high-profile security breaches to Target, Staples, Kmart, and The Home Depot, to name a few.

So, what has changed a year after the Target breach, besides costing the company tens of millions of dollars, losing customer loyalty, and leaving almost 12 million consumers vulnerable to identity theft?

The answer is not much. However, this doesn’t mean that we, as in consumers, retailers, issuers, haven’t learned anything from these incidents. To start with, we learned that the payment solutions system in the U.S. is extremely weak and clearly unable to protect a  massive number of consumers, and it needs to change now. With this reality in mind, a growing number of  issuers and retailers have started acting on updating credit cards to EMV chip-enabled cards and upgrading their systems.

Why these retailers and issuers have moved toward this change is not a completely selfless act, because 2015 is a different game than 2014, with the fast approaching EMV migration deadline in October. This payment solution milestone will ensure issuers and/or merchants are taking responsibility for their own systems and their customers’ data safety

In light of this, here are some predictions for how 2015 will play out in the payment solutions industry with a special focus on EMV Migration:

1. 2015 will be the year for EMV technology to become an industry standard in the U.S:

Since the liability shift deadline is right around the corner, the issuer banks, third party processors, acquirer banks, as well as the retailers will need to start and/or complete the Chip Issuance and Acceptance in 2015. The non-compliant ones will face the risk of losing their market share. Being EMV ready will become a strong competitive advantage in the payment systems market.

2. Contact-less technologies, mobile technologies and the mobile commerce market share will increase in 2015:

The migration will also trigger the increase in mobile payments, since it is perceived as a “more secure way of payment” by many consumers. Therefore, the new technologies, such as Apple Pay, Google Wallet, HCE (Host Card Emulation), and Beacon, will attract an increased number of consumers, which in return, will start offering a variety of new applications like mobile loyalty, peer-to-peer payments, etc. By contrast, wearable technologies will start finding traction, in terms of market share, but it will only become widely adopted within the next couple of years. However, we can expect various players offering new solutions to address different needs such as ease of payment, security, privacy, not only for consumers, but also for merchants.

3. The payment systems industry will start focusing on the “prepaid” solutions:

This will target mostly the unbanked population, but with the wide use of Chip and Contact-less Technologies, we will start seeing the common use of the chip especially for low ticket value – transportation transactions, for instance. The players in the system will start looking for and applying global standards, set forth by industry brands (like Visa/MasterCard) for “open loop” solutions. It will not be a surprise to see an increased number of tap-and-go types of NFC (Near Field Communications) payments this year.

4. The time for the new global players in e-commerce:

We also expect announcements for new mergers and acquisitions, and possible joint ventures in 2015, considering the amount of traction mobile technologies will gain among consumers. Cryptocurrencies like bitcoin or the secure offline payment solutions will expand their user networks, but the real competition will be on the e-commerce side, where we will witness a fierce competition between global players like Google and Amazon, offering payment system services to their customer bases.


Gokhan Inonu is a global leader with over 25 years of experience in EMV migration and financial transactions leadership roles. In his current position as President, Cardtek USA, Mr. Inonu heads the American division of Cardtek Group and oversees operations, sales, marketing and partner management.


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James W. Gabberty

Gabberty is a professor of information systems at Pace University in New York City. An alumnus of the Massachusetts Institute of Technology and New York University Polytechnic Institute, he has served as an expert witness in telecommunication and information security at the federal and state levels and holds numerous certifications from SANS & ISACA.

Marisa Mann

Marisa Mann brings over 15 years of experience in consulting and financial services industries to the Solstice team, working on large scale enterprise initiatives across many technologies, including specializing in the digital space – Internet and mobile. Mann is passionate about mobile and the endless possibilities for the enterprise, delivering business value through strong brand recognition and driving to excellence in the consumer experience. Prior to Solstice, Mann worked at JP Morgan Chase, Diamond Management and Technology Consultants, Washington Mutual, Inc, and Accenture.

Zachary Ehrlich

25-year-old writer, and as a native San Franciscan, I am unreasonably loyal to Bank of America, if only for their superhero-like origin story, involving the 1906 earthquake and Italian fruit vendors.

Brad Strothkamp