Marketing 6218Chip Besio
The History of Erosion of Cash
1850: AmericanExpress launches inBuffalo as an expressdelivery business
1885: American Express introducesthe traveler's check
1914: Texaco issues the first oil-companycredit card.
1950: The multi-purpose charge card is born when businessman FrankMcNamara creates the Diners Club card, a cardboard card accepted at a few Manhattan restaurants.His inaugural transaction is knownas the "First Supper”.
1958: BankAmericard,the ancestor of Visa, issues the first widely accepted credit card.
The History of Erosion of Cash
1975: Referring totraveler's checks,American Expresscoins its tagline."Don't leave home –Without It”
1997: MasterCardlaunches its "Priceless” campaign.
1997: Coca-Colaunveils vending machines that acceptthe first mobilepayments, in whichcustomers text themachine and itdelivers the drink
2012: The CanadianRoyal Mint announcesIt will stop producingpennies, The country'sfinance minister,Jim Flahertv. says itis a "currency. withoutany currency”,-Richard Nieva
The History of Erosion of Cash
The History of Erosion of Cash
43%OF ALL ADULTAMERICANS SAYTHEY'VE GONE AWEEK WITHOUTPAYING CASH
47%OF ALL NYC TAXIRIDES ARE PAID BYCREDIT CARD S0URCES: NYC. Taxi andLimousine Commission [taxi] 50 to
66%OF THE VALUE OFU.S. CURRENCYIS HELD ABROAD[FEDERAL RESERVE CURRENCY]
The Future of Money
Introduced in 2009 in Open Source SoftwarePerson to person exchange systemNot controlled or regulated by any central authorityHas been involved in many corrupt enterprises
US Marshalls to Auction $17.4 million in seized
Bitcoin
The Future of MoneyTO ME THAT IS THEPINNACILE OFTECHNOLOGYWHEN THETECHNOLOGYDISAPPEARSCOMPLETELY-Jack Dorsey,CE0, Square (Twitter Founder)
WE ARE REINVENTINGPAYMENTS FROM THEGROUND UP.''-Keith Rabois,C00, Square (PayPal, Linked In)
The Future of Moneyl'M N0T QUITESURE WHATALL THE HYPEIS ABOUT. ITIS COMMONKNOWLEDGETHAT SQUAREIS NOW BEINGSURROUNDEDBY MANYCOMPETITORSWITH REALBUSINESSMODELS.''-Doug Bergeron,CE0, VeriFone
Two months after Square was introduced PayPal and Verifone introduced similar readers and set their processing fee at 2.7% undercutting Square.
The Future of Money
Vs.
Vs.
The Future of Money
Created a Joint Venture “Isis” to create Digital Wallets to Compete with Square, et al.
150,000 Merchants
At Isis, Jaymee Johnson (Marketing Chief) predicts the carriers’ wallet will hit the market with its technology, and business arrangements, already sorted out. When it fully launches, the carrier alliance will bring an armada of partners: all the major credit card brands, three banks with 100 million customers, and makers of merchant terminals and phone handsets. Currently in Austin and Salt Lake City
The Future of Money
Revenues from Two Huge Industries Will Soon Begin Flowing Over Mobile Phone Networks
The Future of Money
Money Goes MobilePurchase paymentsmade via mobile phone wallets are projected to soar to $1.4 billion by 20I7S0URCÊ: JAVELIN STRATÊGY
A Walled GardenCurrently, only 25 of the top 100 U.S. retailers are set up to accept such “contactless payments”—including McDonalds, CVS, and Home Depot. Moreover, only 2 percent of smart phones in use have NFC chips, which means most people can’t yet pay using a digital wallet.