The document discusses the role of payment system operators, highlighting unbanked and underbanked individuals and their impact on credit card usage. It addresses the evolution of card technology from magnetic stripes to EMV chip cards, emphasizing the adoption of mobile payment systems and loyalty programs. Key players mentioned include PayPal, Wells Fargo, Square, and Kabbage.

1. payments system operators can be thought of as both networks and processors. NACHA Open
loop Merchant Closed loop
refers to people who rarely, if ever, have held a checking or savings account. Unbanked Payment
gateway Underbanked Virtual banked

2. have had the greatest impact on the increased use of credit cards over the last ten years. Rewards-
based loyalty programs Information security Convenience Status
recognized the potential to enable smart phones with wide area network connectivity and
availability, to be used as credit card accepting devices. PayPal Wells Fargo Square ACH
Kabbage
The evolution of card technology from magnetic stripe to EMV chip cards is considered an
change. revolutionary revolving evolutionary futuristic