The ramifactions of a cap on interchange are more profound than meets the eye

As interchange revenues will inevitably dwindle, issuers now have to create new revenue opportunities.

One low hanging fruit is to look at monetizing the transaction data. If banks obviously cannot give data away, they can at least prevent fintechs companies from disintermediating them with over the top mobile wallet solutions, making the banks simply dumb pipes.

Banks could then let other companies handle the content going into the wallet (predictive analytics companies, advertising brokers, etc.) and focus on their core activities.

When Telco Mobile Network operatos tried to control the applications on the phone the result left a lot to be desired.

It was Apple and Google who came up with operating systems which allowed content from a vast array of app developers.

Banks need to do the same with the wallet to keep the high touch user experience tied to their brand.

Banks can still maintain control of their customer's data, and they can create a revenue stream tied to succeeding at proving success in changing customer purchasing behavior similar to how Google offers Google Analytics to show that the person who saw the ad, didn't just click it, but they made it through the whole purchase process.

If the issuers/banks don't do this then Apple, PayPal, Paydiant/MCX, or Google will.

Digital economy here you come!