Will CUs Pay For The Rise Of Capital One And PayPal?: Developing Payments Technologies Could Cut Out The Middleman-CUs

Credit unions should be wringing their hands over PayPal, Capital One and the like, which are siphoning off interchange revenue from credit unions, according to one technology leader. He thinks the industry needs to wake up, said Butch Leonardson, CIO for BECU. Online merchants are increasingly attr...

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Bibliographic Details
Published inThe credit union journal Vol. 12; no. 7; p. 15
Main Author Jepson, Kevin
Format Journal Article
LanguageEnglish
Published New York SyndiGate Media Inc 18.02.2008
SourceMedia dba Arizent
Subjects
Bank debit cards
Competition with nonbanks
Credit unions
Electronic commerce
Industry sales and revenue
Interchange rates
Methods
Mobile commerce
Payment
Revenue
United States
United States > US
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Summary:Credit unions should be wringing their hands over PayPal, Capital One and the like, which are siphoning off interchange revenue from credit unions, according to one technology leader. He thinks the industry needs to wake up, said Butch Leonardson, CIO for BECU. Online merchants are increasingly attracted to PayPal, which charges either low or no card interchange fees. Payment volume for merchant services increased more than 50% last year, to $4.4 billion in the first quarter, at the online payments provider. Capital One, a top card-issuer, launched its decoupled debit card, which links to any bank account and lures consumers with the promise of better rewards.
ISSN:1521-5105