Merchant Payments Digest - 6th Edition

The Merchant Payments Digest is a regular update from Oliver Wyman to keep merchants apprised of developments in the rapidly shifting payments space.



Transformational payments solutions:Amazon’s patent for one-click checkout expired in September. It was originally granted in 1999. The patent protected Amazon’s intellectual property on executing an online transaction with a single mouse click that accessed stored payment card and shipping information. As a result of the patent, other merchants either had to develop their own technology or license it from Amazon. With the patent now expired, some additional merchants may adopt one-click checkout – although many have already developed their own methods for minimizing friction at online checkout.  

Source: Yahoo


Regulatory landscape:The People’s Bank of China has introduced a new mandate for mobile payments to be centrally cleared through a new clearing house, starting June 2018. Non-bank players such as Alibaba and Tencent dominate the Chinese mobile payments market and the move brings them under the central bank’s supervision. While this is expected to reduce operating costs and infrastructure investments for players, it also requires them to share valuable customer data, which may lead to the entry of new players and more payment options for customers to use at merchants.

Source: Forbes


Customers’ evolving expectations:EMV in the US launched two years ago, but consumers view EMV transactions as being slow and many merchants still do not conduct EMV transactions. In particular, there appears to be a disconnect between consumers, who believe the EMV transactions take too long, and merchants that offer EMV transactions, many of whom are not concerned that EMV transactions take so long. To combat the issue, the payment card networks (e.g., Visa, Mastercard) have launched initiatives to speed up EMV transactions.

Source: Digital Transactions


Data:Worldpay has invested in Featurespace, a machine learning based analytics firm that plays in the fast growing ~$14 BN fraud detection and prevention market. In addition to the investment, Worldpay also entered into a commercial partnership with Featurespace to license the technology to Worldpay’s merchant customers to manage risk and prevent fraud, among other use cases.

Source: Worldpay

New providers:

Square has submitted an application to be an industrial loan company. Square Financial Services, as it will be called, will offer loans and deposit products to small businesses. Square already offers loans to small businesses today via Square Capital with its partner Celtic Bank, but will be able to do so going forward without needing a supporting bank partner.

Source: Business Insider


  • Adyen has partnered with Alipay to ensure acceptance of Alipay in brick-and-mortar stores at all of its merchants worldwide
    • Alipay has over 520 million users, making it a key payment method to accept for merchants that cater to Chinese customers
    • Adyen’s Alipay solution is fully integrated into their existing POS devices, with no additional hardware required

Source: Finextra 

  • Mastercard and PayPal are expanding their partnership globally, catering to both merchants and customers
    • Merchants who process payments through PayPal’s Braintree will now have Masterpass as a payment option
    • PayPal customers can tokenize their Mastercard cards in their PayPal wallet and use it for in-store purchases at merchants

Source: Mastercard


  • Shake Shack, a burger chain is opening its first cashless kiosk in New York
    • In the absence of a cashier’s counter, customers will order and pay on digital kiosks or on their mobile phones
    • With this move, Shake Shack expects to improve customer experience by reducing delivery friction

Source: CNBC 

  • Walmart is bringing’s smart cart system to its own site next year
    • Walmart’s ecommerce customers can enjoy lower prices on products if they pay using a debit card instead of a credit card, buy more items together or forgo returns
    • The move is reflective of the growth in ecommerce sales and the importance of payment forms in driving purchases

Source: Bloomberg



Oliver Wyman is a global leader in management consulting with offices in 50+ cities across nearly 30 countries. Our Payments practice works with constituents across the payments value chain to deliver insights with real impact, combining deep industry expertise with powerful consulting capabilities. To have a discussion with Oliver Wyman on your payments issues and opportunities, please contact Beth Costa at