Home depot receipt6/17/2023 ![]() ![]() "In 10 years, non-credit-card mobile payments, I think, will make up around 25% of total mobile payments." "I think the card companies are going to lose at least 15% of the potential market to these mobile alternatives in the next two to five years," she said. Litan predicted that the change will come gradually, and will prove to be significant in the long run. In effect, the wireless carriers, Google and Apple could become quasi-banks that charge retailers lower transaction fees than the banks do, while offering customers greater convenience, analysts said. In similar fashion, Google's Google Wallet, the ISIS mobile payment consortium of three wireless carriers, and even Apple's App Store could begin encouraging customers to use mobile phones to charge purchases that would be paid to wireless carriers or directly to Google or Apple, analysts said. "I think companies like PayPal are going to eat a lot of the U.S. PayPal still secures its payments with credit and debit cards issued by banks, but it also encourages its customers to top off their accounts directly from their savings and checking accounts so that customers keep a money balance with PayPal rather than with a traditional bank, Litan noted. Litan believes PayPal and other forms of mobile payments will be a disruptive technology that provides a quiet reform to the economics of the credit card industry. Prices are theoretically supposed to go down as the volume goes up." " keep going up, even though the volume of transactions has increased. "Retailers are so frustrated by these fees," said Avivah Litan, a Gartner analyst. The credit card companies mainly set up IT and processing systems for the cards on behalf of the banks. The fees are imposed by the many banks nationwide that provide the credit to their customers. ![]() The fees generally range from 1.5% to 12% of a transaction depending on the size of a store or retail chain, according to analysts. Indeed, retailers for decades have complained about, and even filed lawsuits over, what they call onerous fees charged by banks to merchants for credit card and debit card transactions. to reduce abusive pricing practices on interchange fees" charged by banks issuing Visa, MasterCard and other credit cards. "We've said for years that there needs to be more competition. The PayPal system is "fast, secure and convenient - all at a lower transaction cost," said Home Depot spokesman Stephen Holmes. To date, however, more than 90% of customers use the mobile number and PIN to pay, Home Depot said. PayPal is offering account holders a card with a magnetic stripe that can be swiped and read the same way credit cards are read. ![]()
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