The banks have just hired a new CEO to run it with a “network background”. This is likely a new consortium. This CEO will be tasked with creating a new network to “compete with ApplePay” as the premier mobile payment platform. This week, top retailers were in NYC to hear about the launch with several retailers seeking bank support for the new Durbin.
What banks and TCH WANT is a phone based wallet with cards provisioned directly by Banks (20+ posts over last 10 yrs). In a perfect bank world, the token in your phone represents your identity (not your card), and is resolved by the bank into the product you want to use. Obviously Apple cards, Affirm and non-participanting banks aren’t options here in this wallet metaphor. For eCommerce, TCH bank wallet (ie token) integration into eCommerce checkout is the key activity. For contactless (ie NFC/POS) provisioning cards/tokens is the key activity (see Google HCE) If this works, JPMC is the big winner here as they are the processor for the majority of eCom and can run under unique rules (see ChaseNet).