Monday, May 16, 2016

New Style Payment Page With Direct Bank Billing

Today I was ordering a book online and I saw a new style online payment page. It suggests as the first type of payment, pick your bank! I guess the idea is to bypass merchant accounts and credit cards and online payment systems and do a direct debit

The online payment page is marked: Powered by PayPal". While the idea really caught by eye, I predict that this will FAIL in the mark place.

Why do I predict this direct bank withdrawal  not take off in the market place as a payment system. Because it  primarily addresses the vendor's issues. For a vendor, it probably reduces the fees from credit card processing. It probably speeds up payment. It might also cut down on chargebacks but all of these issues matter only the vendor.

From a consumer's point of view, I'm less likely to share my bank details than my credit card details. Also, I don't carry my bank details around with me whereas I do have my credit cards in my wallet.

Heh PayPal, do you have any views on this?  Am I missing the point?

Online Pay with Online Bank Account
Online Pay with Online Bank Account

In contrast, I paid for my lunch today with ApplePay. WOW, that was fast and easy!