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Friday, June 11, 2010

Mobile payments: solutions get dumber while cards get smarter?

Mark Bridge writes:

Last week I spotted a couple of mobile-related news stories that involved payment company MasterCard. One came from CPI Card Group, which had introduced a “next-generation, MasterCard-approved payment tag” (a.k.a. 'sticker') that enabled “any mobile device to be used to make payments anywhere using the worldwide contactless MasterCard PayPass standard” (by sticking it on the back).

But that's not really about the mobile payments market, is it?  Sticking a flexible payment card to the back of a phone is no more “mobile payment” than sticking it on my shoe would demonstrate CPI's commitment to the shoe-payment market – or swallowing an MP3 player would turn me into a cyborg.

It's convergence by gaffa tape, that's all.

Mind you, if I could replace a fingernail with one of those cards… hmmm… watch out, Professor Kevin Warwick.

MasterCard's own MoneySend application doesn't seem much better. Oh sure, it's online, but it's not really adding anything to the m-payment story. If you live in the USA you can use your iPhone to send or receive payments between friends. It works with certain banks and credit unions... and sounds a bit like PayPal to me. Except that PayPal launched its mobile service in those days of pre-history before Apple launched its iPhone.

This week there’s still no sign of smartphones turning into payment cards – but payment cards are definitely getting smarter. NagraID Security has developed a debit card and credit card that looks like other payment cards but includes a small display and a button to generate one-time passwords for additional authentication. These cards comply with MasterCard’s standards, so there’s no reason we shouldn’t see them soon. Very soon.

The moral?  There’s more than one direction that electronic ‘real-world’ payments could go. Or, as Saint Ben of Masabi puts it, “Just because you can do something with mobile doesn’t mean you should”.

 

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1 comments on article "Mobile payments: solutions get dumber while cards get smarter?"

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The Fonecast

4/19/2012 7:55 AM

Today Barclaycard has announced a stick-on credit card. That's all - no talk of apps or the web. And it's supposed to be 'mobile'. Pah!

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Opinion Articles

How long can Apple remain torn between two lovers?

Mark Bridge writes:

“Torn between two lovers, feeling like a fool, loving both of you is breaking all the rules”.

Mary McGregor sang those words in 1976 – and Apple would do well to bear them in mind today. Why?  Well, Rick Astley is to blame for it all.

Oh, alright, Rick’s not personally involved. It’s worm-writer ikee, along with the people who’ve followed him in creating security threats for the Apple iPhone. But why am I invoking the lyrics of Mary McGregor?  It’s because Apple has two loves... and it may be struggling to choose between them.

Author: The Fonecast
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Everyone’s selling Android phones… but who’s selling Android?

Mark Bridge writes:

Samsung. Huawei. Acer. HTC. Motorola. LG. Toshiba. Sony Ericsson. INQ. Dell. They’re all after a slice of the Android cake. (The Android cake is an éclair at the moment. Not particularly good for slicing. But I digress).

And my, what advertisements we’ve seen. Most recently Motorola has been knocking the iPhone while HTC has been playing with marker pens.

But those ad campaigns are mainly about manufacturers and phones. As you’d expect, really. Not about Android.

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1 paisa for 1 second

James Rosewell writes:

One paisa is equivalent to 1/100 of an Indian rupee. In American dollars, a paisa is worth 0.00022 cents. For the British reading this, that’s 0.00013 pence.

Why is this important?

A company in India called MTS have launched a pay as you go SIM card that allows you to make on-network calls for ½ paisa per second...

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Two mobile operating systems to rule them all

Mark Bridge writes:

Cain and Abel. Price and Andre. Judge Dredd and Rico. History is full of pairings that didn’t work out. Two forces that started off together but ended up trying to destroy each other. And so it could be with mobile phone operating systems.

This week it’s been reported that Nokia will be dropping Symbian from its N-series devices by 2012, favouring Maemo instead.

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Who ya gonna call when the phones go dead?

Mark Bridge writes:

This week there’s a government exercise taking place in London. A number of civil servants and private sector employees are simulating the failure of the UK’s fixed-line telephone network. Called “White Noise”, it imagines a scenario where telephone exchanges are destroyed by a giant subterranean monster that pulls really hard on all those underground cables.

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