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Table of Contents

Lead Story

Online networking has come of age: Is your next sale a mouse-click away?


Industry Update

East Coast cabbies "walk" over payment requirements

Visa says upgrade or pay

Fair Isaac and NYCE tag team against data thieves

Mercator weighs upstart payment options

Help someone soar on NAOPP's board

2007 & 2008 calendar of events


GS Advisory Board:
Unsettled economic times - boon or bust? Part I

Advanced-function ATMs register on college campuses

Bill Yackey


A quick test to up your ethics quotient - and profits

Steve Schwimmer
Renaissance Merchant Services

Fewer checks, faster process

Patti Murphy
The Takoma Group


Street SmartsSM:
Would you rather have a boss or be your boss?

Dee Karawadra
Impact PaySystem

Time's up for one cash advance patent

Adam Atlas
Attorney at Law

Raising the green bar: EV SSL

Mike Petitti

Think negative

Nancy Drexler
Marketing Moguls

Merchant account fees demystified

Jason Felts
Advanced Merchant Services Inc.

Company Profile

YourTownMall Business

New Products

Secure customer data by not storing it

MES e-Commerce Payment Gateway and MES Virtual Terminals
Merchant e-Solutions

Virtual assistant for real biz travel

Verbal Expense Tracking
Virtual Management Inc.


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Resource Guide


A Bigger Thing

The Green Sheet Online Edition

September 24, 2007  •  Issue 07:09:02

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Mercator weighs upstart payment options

With the release of Alternative Payment Services: Moving into Traditional Payment Territory, Mercator Advisory Group provides an in-depth look at how the new kids on the block are making inroads into the established payments space.

Given the dramatic rise in online purchasing, the 34-page report is a timely look into how the new systems work and the issues that accompany them.

While in-person POS transactions still account for the majority of consumer purchases, online sales have seen huge growth in recent years.

In 2000, less than 1% of sales were performed online; today that number is closer to 5%, accounting for $116 billion in sales.

However, that growth is not expected to be sustained, due in large part to customers' fears over security breaches and lack of convenience.

Annual growth of online sales are projected to slow to as low as 20% to 16% by year end 2007, and to slow even further in 2008 to around 13%.

Meet the alternatives

In response to consumer demand for improved online payment options, as well as merchants' desire to lower processing fees and staunch shopping cart abandonment, a variety of payment systems has emerged.

Each continues to evolve to provide the right payment system for customers' changing needs.

Mercator's report examines issues surrounding this emerging space, including a look at services such as PayPal, Google Checkout and Bill Me Later. Specifically, the report examines:

"When you add game changing providers like Bill Me Later, Google Checkout's blended ad and payments value proposition, PayPal's broadening range of pay now and pay later offers to the growing set of other payment services, online merchants now have new options and new ways to get paid," said Melanie Broad, of Mercator Advisory Group's Emerging Technologies Service and principal analyst on the report. "While competition will blur distinctions as providers enter each other's space, merchants and their customers will benefit," she added.

Amazon's recently inaugurated Flexible Payment Service, which allows for movement of money between any two entities (human or computer) and is available for use to non-Amazon Web sites, may further challenge traditional payment services. The report is available at

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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Spotlight Innovators:

North American Bancard | Simpay | USAePay | Impact Paysystems | Board Studios