White Papers

SVP Enables Financial Institutions to Regain Market Share for Alternative eCommerce
To Assist Financial Institutions in Capitalizing on the Trends of Alternative Payments for online
Transactions: SVP brings Non-card Transactions back to Financial Institutions

In the evolution of eCommerce transactions, financial institutions have held the upper hand as issuers of credit and debit cards, the most popular and traditional payment methods for online transactions. This is beginning to change, however. In recent years, various alternative methods of payments have gained in popularity, and have demonstrated near parity in terms of brand equity with the card networks. While credit and debit cards still dominate the online retail transaction arena, alternatives such as PayPal, BillMeLater, eBillMe and others are making their way into consumers' lives, taking transaction volume that would otherwise be bank-oriented. Javelin Strategy & Research forecasts that credit cards will represent only 44 percent (down from 56% of total online retail transaction volume in 2008) of all online retail transactions by 2012. The most rapid transaction volume growth will occur among the aforementioned alternatives, essentially taking that transaction volume and slowing the growth of bank-centric payment methods. NACHA Secure Vault Payments (SVP) seeks to reverse that trend and bring these transactions back to the financial institution. As with any new payment type there are risks and unknowns to be dealt with, but given that, SVP will enable banks to regain the position as the arbiter of all types of ecommerce transactions-traditional and alternative-doing so in a manner that does not cannibalize existing, profitable lines of business such as credit and debit card.

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