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Successfully investing in new payment technologies by understanding consumer preferences and merchant influence
Journal of Payments Strategy & Systems,
1
(3),
238-246
(2007)
Abstract
Though electronic technology entered the payment industry via the card magnetic stripe three decades ago, only recently have paperless transactions reached a critical tipping point, with card payments becoming more popular than cheques. Although digitisation will allow the payments industry to be more innovative than ever, it will also require the industry to demonstrate the discipline to ensure that these innovations remain focused on consumer needs and do not become overly driven by technology. The industry must also recognise that merchants will continue to be a key constituent in the adoption of payment technologies, as merchants have a significant influence on transactions at the point of sale. The success of new payment technologies will ultimately depend on the ability of industry players to understand consumer preferences (including key demographic factors) and to understand the influence of merchants in driving consumer behaviour.
Keywords: payments; consumers; digital; demographics; innovation
The full article is available to subscribers to the journal.
Author's Biography
Diane Offereins joined Discover Financial Services in December 1998 as Executive Vice President and Chief Information Officer. She assumed her current position as Executive Vice President and Chief Administrative and Technology Officer in May 2005. She is responsible for overseeing all operations within the functional areas of Information Technology, Administration, and Facilities. In October 2005, she was appointed to oversee the PULSE ATM/Debit Network, a business unit of Discover Financial Services. In addition to her responsibilities with Discover Financial Services, Ms Offereins is a board member of the Loretto Hospital Foundation. Prior to joining the company, she served as Senior Executive Vice President for MBNA America, with responsibility for managing the corporate system development with Hallmark Information Services. Prior to joining MBNA, she was Vice President of retail delivery systems and wholesale delivery systems for Bank of America in San Francisco for five years. She was with Southeast Bank, Miami, Florida, for nine years, where her last position was Vice President and Director of Application Development. Ms Offereins received her BBA in accounting from Loyola University in New Orleans, Louisiana.
Rick J. Reese is Vice President, Enterprise Architecture, and is responsible for setting the technical strategic direction for Discover. As a company officer, he works across the technology organisation linking business strategic initiatives to technical plans. He provides support services to Applications Development, Technology Engineering, and Computer Operations. His teams make leading efforts in the areas of Service Oriented Software Architecture, Information Architecture, Platform Strategy Planning and adoption of emerging technology by the business. With over 25 years’ experience in IT, Richard has held various positions, including Vice President, Corporate Architecture for W.W. Grainger, Inc., and was a Certified Architect in IBM’s consulting group. Richard earned his MBA from Loyola University of Chicago and has a Bachelor’s Degree from Western Illinois University. He can be reached at +1 224 405 4091.
Joseph Bonefas is Vice President of Business Strategic Planning and Solutions. In this position, he is responsible for generating solutions and leading the technology efforts for projects such as the Wal*Mart Discover Card, acquisition of the PULSE debit network, the launch of Discover Debit, and China UnionPay. During his 15 years at Discover, he has served in a variety of Technology and Marketing roles. He was instrumental in the development of the Discover Network online messaging systems linking merchants, processors and issuers, and has recently been central in acquiring Third Party Issuers for Discover Network. He has led technology efforts in Europe, Asia and the USA. Prior to joining Discover, he held various positions in the tele-communications industry. He holds a BS degree in math and computer science from Northern Illinois University and a MS degree in computer science from Northwestern University. He can be reached at +1 224 405 3276.
