Celent is out with a new report on Account to Account Transfers and the revenue opportunities they represent to US banks.
Celent expects 2003 to be a critical year for the US payment industry as ACH payment networks (NACHA with Project ACTION) and EFT networks (NYCE, Star Systems) race to support A2A transfers and enroll institutions. Over the next 2-3 years, Celent believes that the introduction of A2A could drive Paypal out of business while making banks‚ electronic payments offerings more like the Fedex model, in which consumers trade off between speed of delivery and cost.
“Drive PayPal out of business.” Now that’s a bold prediction! Wonder how eBay feels about that?
Speaking of eBay, the company held an analysts day yesterday. The presentation slides used are available for downloading.