A collection of heavyweight banks, card firms and telcos have joined forces in Austria to build an open, nation-wide standard for NFC-based mobile wallets.
Well done, Austria!
Just goes to show what can be achieved with some level of cooperation and cohesion!
How do Austrians think? The upcoming EU area interchange fee regulation will cap the interbank fee for debit cards to exactly 0,20% - for a one Euro NFC payment the issuer will earn 0,2 cents. This does not likely cover the changing cost for the transaction
that include cost for card scheme license fee, clearing/settlement, posting to account, exception handling and distributor compensation - if any - to telco. Either banks make a loss or the consumers needs to pay for usage - which is likely to curb usage...
The LVP business case is going to be challenging in the new "level playing field" Europe.
Confidential at this stageSingapore or Hong Kong
© Finextra Research 2013