Not surprisingly, consumers trust incumbent payment brands when they think about the future of mobile payments. Facebook is the least trusted, despite big numbers of consumer who spend a lot time sharing personal information on the site. [Read more...]
Olympics will be a big test case for mobile payments
February 8, 2011 by Leave a Comment
Handset variety remains a big issue, one that isn’t going to go away fast.
Some interesting stats in the article about the ongoing trail in Spain the includes Telefonica and Visa.
Amplify’d from www.mobileeurope.co.uk
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Schropfer: US mobile payments $1 trillion by 2015
February 2, 2011 by 1 Comment
The fundmental proposition is threefold:
1. Reduced fee’s could be a motivating factor to drive retailers toward mobile payments.
2. An overhaul of the aging payment communication network is overdue.
3. Carriers should band together to challenge incumbents
my take: $1 trillion is a really big number to achieve in 4 years for a lot of reasons, not the least of which are the slow pace of consumer adoption for new lifestyle technology, and point of sale upgrades. Its more likely that mobile payments via e-commerce sites will continue to set the pace in mobile commerce. And the begs the question, will “card not present” fee’s rise on the fears or realities of mobile payment being less secure?
Amplify’d from www.mobilecommercedaily.com
US mobile payments could reach $1 trillion by 2015: exec
Mobile payments will approach $1 trillion by 2015 in the United States if retailers receive lower payment-processing fees based on a more efficient system, according to projections by International Telecom Strategies’ The Luciano Group.
Mobile Commerce Daily’s Dan Butcher interviewed David Schropfer, partner at International Telecom Strategies’ The Luciano Group, Red Bank, NJ, and author of “The Smartphone Wallet – Understanding the Disruption Ahead.†Here is what he had to say:
Who are the primary combatants in the impending mobile payments war, and what factors are bringing the conflict to a head?
Generally, the two sides are in the payment system as we know it today—Visa, MasterCard, First Data, Fiserv, etcetera—and all of the other companies that are either using or contemplating using an alternative to the payment system—PayPal, Isis, EnStream and others.
What are some of the key conclusions and takeaways from the book?
The payment system as we know it today was designed in the 1960s and ‘70s. Technology has improved, but the architecture is the same.
Mobile payments have the potential to create a more efficient and less expensive payment system.
A less expensive payment system could mean much lower fees to merchants, and lower retail costs to consumers.
Consumers need to know that mobile payments and mobile loyalty programs will offer them a chance to regain their privacy.
For retailers, mobile payments may represent a chance to cut their credit card fees in half. The same is true for loyalty and reward programs.
The reduction of these fees is not because mobile payment companies want to survive on thinner margins.
Instead, these fee reductions will be based on a more efficient infrastructure and architecture.
Credit card schemes and processors, however, need to take a serious look at the smartphone, GSM technology, UICC, Trusted Service Management and other technologies to decide if greater processing efficiencies can be realized.
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Starbucks Pay By Mobile Goes Nationwide
January 19, 2011 by Leave a Comment
Amplify’d from www.usatoday.com
Starbucks began testing mobile payments in 2009. To expand nationally, it had to retrofit older scanners with new ones that could accept the bar code from the apps. “We’re going to see big adoption,” Brewer says. He wouldn’t say how much the changeover cost the company.
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Google Testing Wireless Payments
January 8, 2011 by Leave a Comment
Will 2011 be the birth year of nfc proximity payments through mobile phones in North America?
Maybe, but only if Google’s mobile ad initiatives on mobile via Android don’t become the equivalent of modern day toxic waste.
Amplify’d from www.businessweek.com
Google’s Search for a Digital Wallet
The search giant is working on a payments service for smartphones using NFC, or near-field communication, technology
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Related articles
- Google Ready To Rule NFC-Based Mobile Payments? (tech.slashdot.org)
- Android Wades Into Apple’s Patent Minefield to Capture Wireless Credit Card Payments (fastcompany.com)
Mobile Payments will augment, but not replace your wallet – anytime soon
December 23, 2010 by Leave a Comment
2011 will bring us a lot of tech talk about NFC and other mobile payments but few transactions – and certainly no wallet replacements.
The mobile payments sector – especially for in-store proximity point of sale (POS) use case – as a number of really big items to address. They range from what do you when a phone is dead, a POS is not working or a clerk has no idea how to process the transaction, to the challenges of provisioning credit/debit credentials on handsets,what does the payment model (aka interchange?) look like and what happens when you loose your phone.
tell me what you think.
Amplify’d from www.americanbanker.com
Mobile Payments Inheriting the Problems of Contactless
Dead phone batteries. Wrong merchant terminals. Terminals turned off. Terminals unrepaired. No terminals at all.
In hyping mobile payments, many proponents focus on the way point of sale transactions could change, frequently describing people who leave home without their wallets but never without their phones. But that oft-cited cliche is not likely to become reality anytime soon.
When the payments networks several years ago began pushing contactless cards, which let a consumer pay for a transaction by tapping the card against a payment terminal instead of swiping it through, “there was a lack of consistency in terms of telling people what the cards can do,” he said.
Breaking or losing a phone would be handled similarly to losing a plastic card, Bernard said, requiring the consumer to contact a wireless carrier for a replacement and to remotely wipe the lost handset if necessary. Depending on the business model, a consumer may also need to contact the bank that issued his payment card account.
Dave Wentker, the head of mobile products at Visa Inc., said some handset manufacturers may enable contactless capabilities when a handset is not charged, though they can also take the opposite approach and require the phone to be switched on before payments are allowed.
“I think it’s a viable short-term strategy to get key merchants to accept the NFC or contactless payment device, but there needs to be two sides,” Bernard said. “You can seed the market with terminals but then you need a proliferation of the NFC handsets and stickers … so it feeds off of each other.”
“We can’t talk to a tier-one retailer today without talking about contactless and NFC,” Hypercom’s Rossiter said.
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Google, Nokia to drive NFC Growth in 2011?
December 23, 2010 by Leave a Comment
My call: 2011 is the big year of NFC tech talk, but material levels of proximity payments will remain elusive until at least 2015 in North America.
In one corner, we may well have Google w/ Samsung and in the other corner, Microsoft w/ Nokia sparing for share in mobile proximity payments using NFC technology. Apple, RIM somewhere in the middle.
Nokia has the most experience of the handsets makers to use NFC, followed closely by Samsung. Samsung made did a nice job putting NFC in the new Nexus S while trading away MicroSD extra memory.
Note: The forecast here seems low. Chip makers have already come out and said they are building against a 50mil handset inventory in 2011 – based on orders.
Amplify’d from www.v3.co.uk
Google and Nokia to spur on mobile phone payments in 2011
thanks to increasing support for near field communications (NFC) technology from
key players such as Nokia and Google.
The analyst firm predicts that mobile handset shipments will rise to 220.1
million units by 2014, of which 13 per cent will feature NFC software capable of
supporting mobile transactions.
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