Posts Tagged ‘ ecr ’

PayPal Introduces ‘Bypass’ Model to Retail Payments

PayPal Bypasses Payments Indusrty

How PayPal Bypasses Payments Industry

Twenty-five years ago, telecommunications was facing their biggest threat since deregulation, and most executives did not take the threat seriously. Ten years later, it had decimated international telecom revenue models and profitability. Today, it is the reason that most phone calls cost close to nothing. It’s called “Bypass,” and it has just appeared in the payment card industry. If you are a payment industry executive (or investor), don’t make the same mistake as your telecom colleagues by ignoring this trend.

BYPASS BEGINS IN PAYMENTS

PayPal’s announcement on May 25 received significant Continue reading

Contactless EMV – What is the Value to Retailers?

VeriFone can process EMV transactions using NFC through Vantiv.

Retailers often ask, “What new POS equipment should I buy?” My answer has been the same for almost 4 years: “Nothing, yet.” My logic is this: The upcoming liability shift occurs in October 2015 for merchants that have not deployed EMV. So, any retailer that wants to accept Visa, MasterCard and/or Discover after October 2015 needs to buy and deploy EMV equipment before then, if they have not already.

But EMV is predominately a contact sport -meaning that two computers need to plug into each other physically for it to function, which is why a contact EMV card needs to be inserted (or “dipped”) into the physical slot in the terminal until the transaction is over.

So, how do you ‘dip’ a Smartphone into a slot? There are two ways:

Continue reading

Google, Mastercard, VeriFone, and (Many) Others Create a Third Mobile Commerce Format

Google, MasterCard, VeriFone, First Data, Citi, Sprint, Bloomingdales, and many others teamed up today.

Google, MasterCard, VeriFone, First Data, Citi, Sprint, Bloomingdales, and many others teamed up today.

Mobile commerce in the United States will have three Mobile commerce products,  each with similar features, similar benefits, similar functions.  However, all three have different sets of partners,  operate on at least two different types of networks, and will certainly have three different delivery systems.   It’s like a triangular boxing ring with the  boxer in each corner:  if two of the three decide to work together, it’s over.

Chapter 3 of the book, The SmartPhone Wallet describes the negative impact that a Continue reading

VeriFone Defines Next Generation of Mobile Commerce Services with PAYMEDIA

Verifone's New PAYMEDIA Solution

VeriFone has crystallized its long-term position in a pivotal announcement today about a new product determined to put the VeriFone POS devices at the coveted center of payments, loyalty, and mobile commerce industries.  As reported by American Banker this morning, VeriFone’s new service is called, “PAYMEDIA Solutions” and it appears to have the feature-rich experience that several different companies are attempting to provide to consumers through the emerging mobile commerce sector. Continue reading

Combining Payments and Loyalty Programs

(c) 2010-2011 by David W. Schropfer

Interpretation of a Possible Isis Mobile Wallet Design

The first pictures of the Isis mobile wallet are probably many months away from being released to the public. No, the image on the left is neither from Isis nor endorsed by Isis, but it has merit based on recent public statements from the company.

Last week, two executives on the Isis management team discussed critical elements of the company’s future product, specifically:

-A Convenient User Interface;

-Integration between payments and digital loyalty (including coupons and advertising), and;

-Open format for payment schemes, banks, credit unions, even transit systems.

Jim Stapleton, the new head of sales and account management for the joint venture, was joined by Sarab Sokhey of Verizon, an advisor and lead consultant for Isis, at the Mobile and Transit Payments Summit in Salt Lake City, hosted by the Smart Card Alliance.

In his keynote address, Mr. Stapleton said: Continue reading

Starbucks Mobile Payments and…the NRA?

Starting today, my wallet will forever stay in my pocket at Starbucks.  That doesn’t mean I’m going to stop buying Starbucks coffee; it means that I can finally feed my caffeine addiction using only my SmartPhone.

When Starbucks Coffee announced yesterday that over 6,800 of its locations would accept mobile payments, there was a significant amount of buzz in the press.   This morning, I used this service for the first time.

My first unfortunate impression was that the philosophy behind Starbucks mobile payment was reminiscent of the philosophy of the National Rifle Association (NRA).   This requires some explanation, obviously, so here it is: Continue reading

Will Mobile Payments Become a Format War?

Mobile Payment products either use the current payment system, or challenge the current payment system.

It is called a “Format War.”  Two or more companies with different products compete for your attention.  Of course, as a consumer, you get to choose the product you want.  If you don’t like it, certainly you are free to switch to another product. However, since companies know this, they can make it incredibly cumbersome for you to do so.

Mobile Payments could be heading toward a format war, and the first casualty could be consumer privacy.  On one side are all of the mobile wallet and mobile payment products that are based on the existing payments system in use around the world today.  On the other side are alternatives to the existing payment system, which could bypass the processors or schemes that are the backbone of the payment system. Continue reading

The SmartPhone Wallet is Now Available

A torrent of advertising and promotional marketing is heading your way to try to get you to use new services on your SmartPhone at retail stores.  Perhaps you have already seen some, or signed up for some.

At stake is the future of the credit card system that moves over $11 Trillion per year from consumers to retailers. Some of the largest companies in the world think this system should change, starting now.  Other, equally large companies think everything should stay the same.

And these two sides are already lining up on a battlefield, with you standing in the middle.  And, if you are not careful, the first casualty will be your privacy.

Continue reading

How ISIS Could Challenge Visa and MasterCard

Michael Abbott, Isis CEO

Michael Abbott, Isis CEO (Photo: Business Wire)

Washington at Yorktown. Grant at Vicksburg.  Abbott at San Francisco?

Michael Abbott is the new CEO of the joint venture announced yesterday by AT&T Mobility, T-Mobile USA and Verizon Wireless.  The name of the venture is ISISTM and their primary charter is building a national mobile commerce network that aims to “fundamentally transform how people shop, pay and save,” according to a press release from the company.

To do that, Abbott will need to create an environment for San Francisco-based Visa (and the other payment giants) that will eventually present them with the same ultimatum which Washington and Grant gave to their opponents: Starve or surrender. Continue reading

Bricks, Not Bits, Will Drive the Mobile Wallet

The most widespread misconception about potential of M-Commerce is that it will primarily be a way to shop online.  But, online retail accounts for only about 4% of all retail transactions today, and will probably grow to about 8% by 2014. While the growth rate is impressive, the fact remains that brick and mortar retailers hold the key to M Commerce, Mobile Payments, the Mobile Wallet.   Even if every bank and credit union in the world enables you to use your Smartphone as a payment device, these applications would be virtually useless if you could not walk into your favorite store and buy something. Acceptance at brick and mortar retailers is key. Continue reading

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