Posts Tagged ‘ mobile wallet ’

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

Whitepaper: Google Wallet and the New Payments Ecosystem

Google Wallet Whitepaper by David W. SchropferMobile payments is starting over. When the Google Wallet launched on September 20, 2011, the first test of a remarkable new financial ecosystem began. But despite the apparent success of traditional mobile payments products like M-PESA in Kenya and South Africa, Google and rival Isis have decided to rewrite the business model – and for good reason. Actually, four good reasons: 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.

Insightful Report on Mobile Wallets by Nora Young, Spark Radio

Nora Young–host of “Spark” on CBC Radio

Next  Sunday, an insightful report on the Mobile Wallets by Nora Young will be broadcast on CBC Radio’s “Spark” program in advance of the Mobile Money Forum in Montreal on June 21, 2011.  The podcast of this report was posted this morning.

In her report, Nora uses a variety of different interviews and prior reports to present to her listeners with a clear picture of what mobile wallets will become in the relatively near future.  Also, Nora’s report touches on the most important issues that surround the mobile wallet and mobile commerce in general. Unlike many other reports in the media that I have seen this since the Google/ MasterCard/ First Data/ VeriFone announcements last week, Nora focuses on the consumer experience, and the practical application  of mobile  wallets. Also, she uses excerpts of interviews with myself and others to clearly describe some of the terminology the benefit of consumers without using overwhelming jargon. Continue reading

Google ‘Wallet’ Will Be More Secure Than Plastic Credit/Debit Cards

Image Credit: cloudave.com

Yesterday, the Google Wallet was announced.   given that security has always been the number one concern of consumers, the most important question on people’s mind is, “will it be more secure?”

The short answer is: Yes.

Here’s why:   a Smartphone can be secured on the network of your bank, or the network of your credit card company, or any other network using the exact same technology that secures your smart phone on the network of your mobile phone company.

Do you remember decades ago when fraudulent 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

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

The Key to Amazon’s Mobile Payments Strategy: Know JACC

WIll Amazon Mobile Payments rely on NFC?

Last week, Bloomberg.com reported that Amazon.com’s “Amazon Payments” unit is working on a mobile solution based on Near Field Communication (NFC).    But an analysis of the potential business models and revenues strategy of Amazon all but precludes  is as the sole strategy of Amazon.  Here’s why:

Although NFC is certainly making the news these days, and multiple companies are positioning products and services leveraging NFC, Amazon.com is likely to have something better with significantly shorter lead-time. Continue reading

Mobile Payments Strategy of Mastercard is Crystallizing

Image Credit: TechShout.com

For over two years now, conventional wisdom and industry pundits agreed that the general strategy of MasterCard and Visa would attempt to make mobile payments simply another form factor of a credit or debit account. The tactics that these companies would use to accomplish this strategy, however, had been the subject of extensive speculation and conjecture.   The recent article in the Wall Street Journal detailing MasterCard’s joint effort with Google and Citi, the tactics of MasterCard became remarkably clearer.

MASTERCARD AND MOBILE

MasterCard’s mobile payments strategy seemed significantly less potent and newsworthy than Visa’s lately.  Back in 2009, MasterCard’s Mobile Payments Gateway appeared to be a strong start. Continue reading

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