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:
[click to continue…]
Verifone's Opinion about NFC
When VeriFone speaks, they often reveal the next advances in Mobile Commerce. They spoke clearly at the GSMA conference earlier this month regarding both Near Field Communications (NFC) and Mobile Network Operators (MNOs).
In October of 2010 when VeriFone announced that for the first time their systems could circumvent the established payments industry, it received little fanfare because there was no adoption and no clear path to mass appeal. Today, every Home Depot in the United States accepts PayPal as a form of payment, and that is only the beginning. Next, in 2011 VeriFone announced its services would expand to include loyalty and social media components, and again the popular reception was, “yeah, that will be great someday.” But today, behemoth Google considers VeriFone a key strategic partner. This month, when VeriFone clarified its position on NFC and opened the doors for MNOs, it is likely reveals the next industry steps once again. They said:
[click to continue…]
Click this image to access the calendar
Here is a free resource from The Luciano Group.
Have you ever wondered which mobile commerce events were happening this month? Ever get frustrated trying to weed out the mobile commerce events from the events lists of other industries like payments, telecommunications, and banking?
The resource you need is here: www.lucianogp.com/mc-events [click to continue…]
For a free copy of the Executive Summary, click the image above.
The Mobile Payments industry 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: [click to continue…]
Steve Jobs (Photo Credit: SF Weekly)
Update to previous post:Steve Jobs passed away Wednesday October 5, 2011. Farewell, and thank you.
Here is the original post from August 24:
Steve Jobs, legendary of Apple Incorporated, resigned today as CEO. The Board of Directors of Apple named him chairman, then named Tim Cook as the new CEO according to an article that appeared in Reuters today, and a letter from Jobs posted on the Apple Web Site tonight.
As a practical matter, Steve has been on medical leave since January 17, 2011, and has been seen and heard from by the general public rarely during that period. While it is unclear to what extent Steve is been influencing the operations and direction of Apple since his bout with pancreatic cancer began, stepping down as CEO and becoming chairman may not, in fact, materially change the role he has been playing at the company for over a year.
However, as someone who is focusing on the emerging Mobile Commerce industry and has been waiting for Apple to make a stand in this new arena, I am particularly sorry to see him go at this time. The reason? In a word: innovation. [click to continue…]
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 [click to continue…]
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.
Image Credit: www.memeburn.com
Columnist Alistair Fairweather recently published an article detailing 4 different Mobile Payments Models. With one caveat, the analysis is one of the best-written and most succinct written on the topic to date; a must read for anyone who wants to take a crash course in Mobile Payments.Mr. Fairweather clearly indicated that his list was not exhaustive with his comment, “There are at least a half dozen different approaches competing to become the de facto format.” However, the model that is notably missing is one the includes payments as a component, and not the sole function: the Wallet model. The Google Wallet (often categorized as a payment method) uses the ‘Wallet” model,which produces no revenue for Google directly from payments; the revenue from payments remains intact for the banks, processors and ISO’s and the ‘Wallet’ is simply a form-factor replacement for a plastic card. But, Google is not a non-profit; they will make plenty of money from this model; Here’s how: [click to continue…]
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.
[click to continue…]
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 [click to continue…]
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 [click to continue…]
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. [click to continue…]
Photo Credit: http://moviecitynews.com
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.
[click to continue…]
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. [click to continue…]
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:
[click to continue…]
This is how PayPal could offer micropayments at B&M retailers. Everything except the dotted lines exist today.
PayPal’s
announcement yesterday rolls out micropayments (transactions under $12) for online purchases, and further improves their position for a large stake in the mobile payments arena. But how would they leverage this micropayment capability at a brick-and-mortar store? One possibility is the ‘do-it-yourself’ approach, as shown in the diagram. The multi-billion dollar system that supports standard formats like MasterCard, Visa, Discover and American Express are based on two things:
[click to continue…]
