The online retail channel, despite still representing a relatively small percentage of overall retail sales, is a high profile channel in which many payments alternatives attempt to establish themselves and usurp transaction volume from financial institution-controlled credit and debit cards. Several once-alternative payment methods are now becoming mainstream, even though credit and debit cards still own the online channel; what will the final outcome be? This report defines competitive threats to credit and debit cards; and identifies the emerging “alternatives” that have the greatest chance to succeed and thrive, based on Javelin’s research-based forecast for online retail transactions through 2013.The report also addresses key success factors driving traditional and alternative payments methods, and how organizations can maximize transaction volume and margins. Report Preview

The banking industry is watching carefully to see if Wells Fargo has developed a winner with the national rollout in October of its vSafe online storage vault, believed to be the first offered by a large U.S. bank. While there is clearly demand for products that will help consumers cut through the financial clutter in their lives, it is too early to tell if such vaults will pay off for banks and credit unions in terms of revenues, cost savings or increased loyalty. This report analyzes consumer sentiment regarding the need for online vaults, shows that banks and credit unions have a temporary edge in this market, delves into how consumers are likely to use such vaults – and outlines why vaults are not likely to catch on overnight. It also profiles five banks and vendors who are taking different approaches to the online storage market: Wells Fargo, Vault Street, Morgan Street, CheckFree and eGistics. Report Preview

With more than one in ten consumers notified of a data breach in the last year, concern over personal data security and identity fraud is also on the rise. Breaches are about more than identity theft or fraud, placing brand equity and customer loyalty at serious risk. A patchwork of state-by-state notification laws imposes stringent requirements from a consumer-protection standpoint, mandating breached organizations to notify all affected individuals. This report examines the consumer-facing implications of data breaches, and how public perceptions impact reputations and business relationships, particularly those of financial institutions. Using robust consumer data from actual data breach victims as well as data from the 2008 Identity Fraud Survey, Javelin analyzes consumer reactions to breach notification, perceptions of who is at fault, the sensitivity of the data being exposed, and the impact of breaches on consumer financial behavior, such as payment card usage. In addition, Javelin provides strategic recommendations for breach response and notification, as well as an overview of third-party vendors providing breach resolution services. Report Preview

The Apple iPhone and the T-Mobile’s G1 phone, the first Google-powered Android phone, are fueling interest in smartphones among users who are young, affluent and increasingly mobile – creating an enticing market segment as banks wrestle with whether to build a mobile-banking platform around SMS texting, a browser or a downloadable application. This report analyzes Javelin consumer data to profile the mobile behaviors of smartphone owners, high-income Americans, college-age customers, and other consumers who are most likely to become first adopters and spread the word to friends, family and co-workers. It explores how to best build a platform using one or more of the mobile-banking platforms to suit different types of consumers. And the report includes a Q&A with Bank of America executive Douglas Brown, who discusses the strategies that have led to the banking giant’s immensely successful program, including how the firm recently reached a new milestone of 1.3 million mobile-banking customers, why it added a downloadable application to its mix, and why wireless carriers are a “critical component” to the success of mobile banking. Report Preview