Taking a look at what some of the big corporates in finance, retail, and eCommerce are doing to innovate their payments practices

1. Offering & Key Differentiators Plan to achieve scale
Monetization
Chase Pay will be rolled out in Mid-2016 with features attractive to
merchants and consumers
Chase incentivizing merchants to accept Chase Pay to not pay interchange
• Chase Pay is built on the MCX1 product Current C, a
smartphone app that uses a QR code shown on the
cashier's screen, or has the cashier scan a QR code
from the phone's screen.
• Chase Pay will consolidate all Merchant Loyalty rewards
programs in one app; the rewards consolidation and
transaction tokenization will be integrated via Paydiant2
(acquired by PayPal)
• Current C is a direct competitor of Google Wallet & Apple
Pay, a key advantage is Chase Pay will be available on
iOS and Android devices
• Many of the MCX retailers do not allow Apple Pay &
Google Wallet as a method of payment
• The partnership with a merchant run payment company
may allow Chase Pay SKU level data, a data source
never released to any other mobile wallet provider
Consumers
• Chase Pay will be a closed loop network connecting to the existing
base of 94M consumer accounts (debit/credit)
• Chase Pay auto provisioning Chase Pay for all mobile app client
users
Merchants
• Chase Pay partnering with MCX1 (merchant owned mobile payment
system) that covers 100K locations (e.g. Wal-Mart, 7-Eleven) and
accounts for ~$1T in US annual sales (~23% of all US Retail sales $)
• Chase is offering merchants a fixed fee per transaction with no
additional fees charged for interchange, anti-fraud, etc.
Partners
• Chase also pursuing partnerships with other mobile wallets by
positioning itself “behind the scenes” (e.g. Starbuck Mobile App)
• Chase Pay is free of charge for all Chase clients (debit / credit)
• Merchants will be charged a low fixed transaction cost with no additional fees charged for interchange, anti-fraud, etc.)
• Chase anticipates a higher volume of transactions due to the mobile wallet which will result in increased interest revenue for
unpaid balances.
1. MCX is a company created by a consortium of U.S. retail companies to develop a merchant-owned mobile payment system, which will be called "CurrentC.“; MCX is led by 7-Eleven, Alon Brands, Best
Buy, CVS Health, Darden Restaurants, HMSHost, Hy-Vee, Lowe's, Michaels, Publix, Sears Holdings, Shell Oil Products US, Sunoco, Target Corporation and Walmart
2. Paydiant was acquired by PayPal in 2015 for $280M; Paydiant offers services including integration of loyalty programs and mobile payment to apps as well as building mobile wallet solutions

2. Offering & Key Differentiators Plan to achieve scale
Monetization
Early Warning acquired clearXchange to create the largest and most
secure digital payments ecosystem
A play by banks to preserve position in financial transactions in an evolving industry
• Early Warning offers risk management solutions for
authentication, payments, and regulatory to financial
institutions.
• Early Warnings payments solutions include mitigation of
deposit fraud, non sufficient funds, account ownership,
and high risk debit / credit transactions.
• Early Warning is owned by 7 of the largest US banks:
BofA, BB&T, JP Morgan, Wells Fargo, Capital one, PNC,
& US Bank.
• In January 2016 Early Warning added a digital payments
network to its product portfolio through the acquisition of
clearXchange (owned by BofA, JP Morgan, & Wells
Fargo)
• Early Warning’s fraud prevention services, authentication
capabilities, and bank network with the scope of
clearXchange’s digital payments solution will create the
largest real-time payments ecosystem
• The first phase (P2P) will be launched Q1’16 soon to be
followed by B2C, & gov’t payments
• Early Warning’s unique position of being owned by 7 of the largest
banks and a client base of 1,100 financial institutions will allow the
solution to be immediately deployed to the customer base of each
bank
• The new venture will allow P2P transactions amongst people with
accounts at different banks, coupled with the high degree of risk
management.
• Early Warning will soon launch a B2C and government payments
capability to attain a large share of payments transactions occuring.
• Early Warning was designated a “preferred partner” by NACHA, a
payments industry private sector regulator. This designation will
encourage more financial institutions to adopt Early Warning to
ensure compliance with rules and regulations.
• Through the combination of Early Warnings fraud management solutions and the ClearXchange digital payment network banks will
remain in control of technologies that will become core to mobile commerce.
• As mobile commerce continues to grow this offering will allow banks to maintain their competitive positioning
Source: Earlywarning.com, PYMNTS, Payment Source, Bank Innovation

3. Offering & Key Differentiators Plan to achieve scale
Monetization
TCH is further developing their real-time payments offer to maintain
scale in the money movement space
Via scale and innovative capability they hope to make payments startups irrelevant
• The Clearing House (TCH) is the oldest banking
association and payments company in the US
• TCH is a private sector, payment system infrastructure
that operates an electronic check clearing and settlement
system, an automated clearing house, and a wholesale
funds transfer system.
• TCH entered into an agreement with UK based VocaLink
to develop and roll out a new real time payment system;
TCH also partnering with FIS (owner of real time
payment system PayNet) to utilize their technology stack
• TCH processes approximately 50 percent of all
commercial ACH volume in the US
• TCH is owned by 24 of the largest commercial banks1
• TCH actively voices that payments startups need to be reigned in due
to the fact that they currently face none of the regulatory requirements
that are imposed on financial institutions.
• TCH is owned and operated by 24 of the worlds largest commercial
banks and currently processes 50% of all commercial ACH
transactions in the US; this large share of existing transactions will be
the starting base for the roll out of real time payments.
• TCH strategically selected their partnership with FIS due to the large
relationship network that it has; FIS owns PayNet, Sungard,
Clear2Pay, & Capco, all with deep relationships in the financial
industry.
• TCH will charge an incremental fee for real time ACH to cover the costs of the infrastructure that will make real time payments possible
1. Banco Santander, BofA, BNY Mellon, Mitsubishi, BB&T, Cap One, Citi, Comerica, Deutsche, HSBC, JP Morgan, KeyBank, PNC, RBS Citizens, Regions, UBS, US Bank, Wells Fargo, City National, Fifth
Third Bank, First Citizens, M&T
Source: theclearninghouse.org, Bloomberg, Business Wire, Forbes,

4. Offering & Key Differentiators Plan to achieve scale
Monetization
Walmart created the pay app to integrate their offline and online shopping
experience
Walmart aims to own the entire shopping lifecycle from flier to checkout & payment
• Walmart announced the development of Walmart Pay as
an addition to the Walmart app currently in use by 22M
Walmart Customer (~15% of Walmart shoppers)
• While Walmart is one of the MCX retail partners, the app
is not built on Current C, Walmart pay is an internal
development also using QR codes as the payment
method.
• Walmart pay allows customers to integrate any credit
card, debit card, Walmart gift card, and saving catcher1
to the app
• Integration of the savings catcher will allow customers to
get the funds received directly on the app and available
for immediate use
• Walmart emphasizes that Walmart Pay is mainly to
increase customer satisfaction, especially in market
share war with online rival Amazon
• Walmart does not allow any other form of mobile payment (e.g. Apple
Pay & Android Pay) in their stores
• The development of Walmart pay into the existing Walmart app will
provide Walmart pay with a sizeable existing user base (22M)
• Walmart has launched Walmart pay capability in select stores and
expects to fully roll out Walmart pay by mid 2016.
• Walmart will be able to collect important shopping data from customers that will provide insight to drive loyalty by engaging customers
with personalized offers and relevant interactions
1. Savings Catcher is a Walmart app service that allows customers to upload pictures of their receipts and then scans those receipts to see if competitors offered lower prices on any items. If they did, Walmart
refunds the difference with an e-gift card.
Source: Walmart, The Verge, Wired, Reuters, USA Today, Beta News

5. Offering & Key Differentiators Plan to achieve scale
Monetization
Amazon Payments is focused on gaining traction across retail
merchants with an online presence
An effort to grow its intelligence on client shopping outside of Amazon.com
• Amazon payments allows merchants to accept payment
from customers through their Amazon.com accounts
• When a merchant subscribes to Amazon Payments,
clients do not have to re-enter payment information since
it is already prepopulated on the Amazon account.
• The Amazon payment product can manage several
aspects of the transaction including order processing,
promotional discounts, shipping rates, sales tax
calculation, and up-selling. Depending upon the needs of
the merchant.
• Amazon payment can be integrated into the merchant's
systems with manual processing, APIs, or downloadable
CSV files.
• Amazon also offers merchants fraud detection
capabilities
• Amazon has a large user base (244M accounts); when merchants
use Amazon Pay they provide “prepopulated” payment info for a large
set of potential customers.
• Amazon payments also included person to person payments, SMS
money transfer, and other money transfer businesses; However,
Amazon has shut down all businesses and created an emphasis on
consumer payments to other merchants using Amazon credentials
• Amazon plans to grow their payments footprint through entry into new
geographies via internal product development as well as through
acquisitions (e.g. Emvantage, an Indian based payments processing
provider)
• For sales <$10 Amazon charges 5% plus 5 cents per transaction; for sales >$10 Amazon charges 2.9% and 30 cents per transaction
• As Amazon users purchase products on other sites using Amazon accounts, Amazon will have more data on what their consumers
shop for and how much they pay
Source: PYMNTS, Grasshopper, Business Wire, Amazon