Posts Tagged ‘ iphone ’

Five Reasons iPhone-5 Excludes NFC

Tim Cook Introduces the iPhone 5 on September 12, 2012

Based on Apple’s press conference on September 12, their strategy can be described as: change customer behavior now, encourage an upgrade later.

The Apple wallet going to be called “Passbook.” It works without an NFC chip, relying instead on geolocation to determine if an iPhone user is in the proximity of a compatible terminal. Geolocation is clearly not permanent solution because it includes obvious problems, such as: unwanted notifications (if you ever want to be notified that you can use your Starbucks card, for example, you’ll be notified whenever you can possibly use your Starbucks card, whether you want to or not), and imperfect functionality indoors (when you are in a shopping mall, GPS has a hard time figuring out exactly where you are).

So if geolocation is not the ideal permanent solution, why did Apple exclude NFC from the iPhone 5? Continue reading

New Mobile Commerce Industry Outlook Presented at PrePaid Press Expo in Las Vegas

Overview from PrePaid Press Expo

A detailed forecast and quantitative analysis of the emerging Mobile Commerce industry was presented and discussed at the Pre Paid Press Expo in the Paris Hotel in Las Vegas, and the results were remarkable.

Mobile payments and mobile commerce have become different products, applicable to different markets. One of the key differences is the use of Pre-Paid and Stored Value cards as a ‘ virtual bank’ and a new revenue source for products like the Google Wallet and Isis. Read an overview of the analysis presented yesterday by David W. Schropfer at the Expo. The presentation preceded an expert panel discussion which also included mobile commerce experts: Dennis Andrews and T. Jack Williams. Moderator Lori Breitzke expertly guided Continue reading

According to ISIS: “NFC…Just About to Explode.”

Image Credit: Dial-a-Phone / ISIS

Yesterday, Andrew Johnson  of American Banker magazine (and PaymentSource) interviewed ISIS head of marketing Jaymee Johnson (no relation).   In the article published today, Johnson said:

“The handset pipeline around NFC is basically just about to explode,” Jaymee Johnson, ISIS head of marketing, said in a June 22 interview.

“That will change pretty dramatically … by the early part of next year and really the end part of this year,” Johnson added.

Click here to read the full article.

Will Retailers Use “Tender Steering” to Control Interchange Fees?

A process called “tender steering” is new to most retailers.  It means that a retailer can provide incentives to customers to use a particular type of card to pay.  This method could give retailers the power to drive interchange rates down by driving customers to some types of cards and away from others.

You might think that after half a century of having little or no control over the fees they pay to accept card payments, retailers would be demanding that all mobile commerce products and NFC-enabled systems support tender steering.  They are not.  Retailer associations have been virtually silent on the topic, and there are no reports of major retailer pushing this service.

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

PayPal and VeriFone: Subtle Announcement, Sweeping Implications

Verifone's Paypal-Supported PAYware

Verifone's Paypal-Supported PAYware

Enjoy your holiday shopping this year; it could be the last time you reach for your wallet to pay for all of those gifts.

A week ago, conventional wisdom would have dictated that Americans would need to wait at least five years before such a reality were even possible, never mind widely available. On October 27, 2010 all of that changed when PayPal (the largest alternative financial institution in the world) signed an agreement with VeriFone (the largest producer of credit card acceptance devices for retailers in the US). Continue reading

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