valleylist(sm) v154 r.1 thursday 04.14.2011
high tech products companies consumers
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+ amex to work with startups on mobile payments
- - amex to enter online payments war and compete with paypal
+ google and bing gain market share as yahoo! slips in search
+ apple adds “do not track” features to safari
electronic banking and transaction processing got their start in the 1920′s. gasoline companies used plastic “credit cards” to sell more gas. diners club and a few others offered cards accepted at many vendors. western union made the next move with “plastic” credit card services. yet it wasn’t until 1958 that the modern credit card was invented.bankamericard was the first and for more than a decade the only bank-issued credit card. easy credit terms. monthly payment on the balance. friendly monthly billing statements. reminder notices. all this helped make americard very popular. in 1958 americard became visa and the credit card industry took off as a monopoly. in 1966 a group of banks formed a consortium to launch their own credit card – - mastercharge. united bank of california wells fargo crocker bank of california and later citibank came up with the competing service that later becamemastercard [1969].
bank of america purveyor of the americard was also the first to commercialize atm services and offer the atm card.
electronic transaction processing is almost the same as electronic banking. difference. banking involves money and personal and business accounts. transaction processing involves handling transactions. could be banking. could be the government general accounting office. could be amazon.com processing payments and shipping a book ordered online.
h ross perot the “valleylist” avatar this week is credited with inventing and commercializing the transaction processing industry. trained as an ibm salesman perot founded electronic data systems [eds] as a start-up in 1962. eds was sold to hp computer services in 2008 for $13.9 billion. the entire business is based on proprietary networks and software for processing electronic transactions. eds competes against government size companies like trw lockheed boeing and bank of america.
“valleylist” background information for this article can be found in san francisco high tech leadership online shopping high tech megastores andneighborhoods and retail areas. in the meantime those of us hiding out in san francisco are living the cash-based economy vida loca. or is it the event-based economy. events don’t bring in real money. millions like myself are hiding out so it’s cash.
few high tech segments are larger than transaction processing. data processing probably out ranks every other category. accounting and transactions are also a very large part of the information services industry infrastructure. a big need found and filled in the 1950′s.
top 10 electronic banking and transaction processing services
[based on importance]
#. company – - – - – - – - – - – - – - – - year started – - – - $revenue – - – - description
1.electronic data systems [eds] – - – - 1962 – - – - $22.1b – - – - now hp enterprise systems
2.visa / mastercard - – - – 1958 – - – - $8.5b / $5.5b - – - – retail electronic payments world wide
3.paypal - – - – 1998 – - – - $400m – - – - 94 million accounts 190 markets 24 currencies
4.square - – - – 2007 – - – - $ n/a – - – - a twitter company
5.sabre [american airlines] – - – - 1960 – - – - $3b – - – - first electronic ticketing and reservation system
6.amazon - – - – 1994 – - – - $35b – - – - first internet ecommerce company
7.ebay - – - – 1995 – - – - $9.5b – - – - owner of paypal and ecommerce innovator
8.amex - – - – 1850 – - – - $7.9b – - – - traveler’s checks and credit card
9.bank of america - – - – 1850 – - – - $115b – - – -usa first bank
10.chase [jp morgan] – - – - 1920 – - – - $90b – - – - transaction processing innovator
source:
federal trade commission electronic banking (eft) yahoo finance
of particular importance. chase jp morgan the only with a point click and deposit iphone app. square from twitter because there’s a need for something totally new. amazon.com the first to commercialize the internet. visa / mastercard because credit cards make it all possible. sabre pioneered online ticketing and reservations.
electronic banking and transaction processing is new to the internet. initially designed to serve government and university needs the internet was designed to function as a non-commercial service. al gore and a few other “open market” enthusiasts changed all of that. in the 1990s the internet was ”commercialized” by new policies from the national science foundation [nsf] and national science agency [nsa]. the thousands of banking and transaction processing systems functioning outside of the internet are the real industry. when they plug into the internet banks and transaction services seem like internet services. they are not. just like chase manhattan bank and trw these are financial and computer services totally apart from the internet.
transaction processing is old technology.
innovative companies are looking for a new technology platform to escape the limits of “old” technology. banking and transaction services are based on 10 year old hardware and 20 year old software. cell phones and the wireless infrastructure are most likely the next step to process high volume microtransactions like grocery shopping and incidental purchases.
the need for new services is creating a need for a next generation technology platform. for example “valleylist” could charge you $1.00 to read or print out the latest articles. how would you pay?
credit card.
buy (these) articles. soon.
planned new titles – - people who lined it up
planned new titles and sponsorship online
actual publishing schedule online at http://calendar.yahoo.com/g_mcpaul
pub date - – - # title - – - – - – - – - – - [avatar] – - – - – - version
thursdays
3/10/2011 – - 1_(electronic publishing) [martin nisenholtz] v149 [done]
3/17/2011 – - 2_(newspapers) [william randolph hearst] v150 [done]
3/24/2011 – - 3_(magazines) [jann wenner founder rolling stone] v151 [done]
3/31/2011 – - 4_(ibooks and ereaders) [gutenberg] v152 [done]
04/7/2011 – - 5_(internet / browsers) [search] v153 [done]
4/14/2011 – - 6_electronic banking [h ross perot] v154 <- – current edition
4/21/2011 – - 7_electronic commerce [barry diller] v155
4/28/2011 – - 8_internet social groups [marc zuckerberg] v156
05/5/2011 – - 9_other electronic publishing [richard adler] v157
5/12/2011 – - 10_email [arpanet] v158
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(“valleylist” ecommerce concept demo)
planned titles and sponsorship is online for those ambitious enough to drop off some cash and buy lots of influence. did i say cash? [any starbucks after 5pm]. the “valleylist” publishing schedule includes almost everybody in san francisco. most important. coffee with future mayor leland yee. art events abound. it’s spring so clean up the polk street area. meet new people us at the polk merchants spring fling.
“valleylist” people should “eat cake” at the modern times bookstore birthday bash. dance away the heartache at janet jackson live and robert plant band [of joy] from another planet.
sf “valleylist” art aficionados found themselves nearly breathless.
north beach first fridays art walk. obligatory stop at city lights bookstore. all is not well with the city. urban green exhibition a chance to find eco center director carole nutter dressed like britney spears. latest fact. shut down civic center wind power project. technical problems. art explosion open studios just too much fun. the artwork made it worthwile. adorable art from david bontypo ken haney abbos nathivin and lani tanaka made viewing 400 artists in 4 hours worth while.
saturday live macy’s cooking show fairmont chef jw foster featuring honey cultivated on the hotel roof. center for urban education [cusa] sponsored the event. chef’s delicacy. lavender honey citrus cured salmon carpaccio. sunday open mic at st. luke’s. monday the latest edition of “valleylist” written at cafe flore. tuesday’s on the phone to me – - it’s ben and jerry’s free ice cream day.
conclusion. cell phone technology already accesses existing electronic banking and transaction processing services. the need for a future better than plastic is driving the business to a new technology platform. the cell phone. the electronic banking and transaction processing industry is in need of a comprehensive upgrade. why not total technology retrofit. better yet throw it out and start all over again. that is a real waste of time.
rather try a swing at a total redesign. existing systems deliver a lot of value. the need for innovation based on market driven factors is where it’s at.
real solutions to the problems of the future are needed.
checks are passee. credit cards too easily compromised.
“valleylist” could help.
cash only.
greg mckenna
publisher
valleylist
valleylist_news@yahoo.com
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