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THE EVOLUTION OF PAYMENTS
In the mid ‘90s customers had to visit a bank branch to make deposits, and there were four basic methods by which payments could be made for goods and services:
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Cash
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Checks (which would include money orders and travelers checks)
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Credit Cards
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Closed loop cards (e.g., store credit cards)
Today’s technology explosion – primarily fueled by high-speed communications, faster settlement of electronic payments, imaging technology, and the Internet – provides consumers with a dizzying array of options to make deposits and payments and move money between friends, which includes the traditional methods listed above, along with expanded offerings such as:
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ACH
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Electronic Checks
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Electronic Bill Pay
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Branded Debit Cards
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Prepaid Cards
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Chip Cards
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Moneygram
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PayPal
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Apple Pay
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Google Wallet
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Bitcoin
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P2P Money Transfer
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B2B Payments
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Electronic Invoicing and Payments
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ATM Deposits
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Remote Deposit Capture
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Mobile Check Deposit
Of particular concern for banks should be the fact that many of the newer payment technologies are provided by non-banks, which are increasingly becoming a disruptive force within the financial services industry as they go around banks to market their products and services directly to the customer.