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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

And our survey said...

Mark Bridge writes:

The coolest person in the country admires the French president's wife and lives in East London. Oh, and they use a BlackBerry by day but an iPhone by night. That's what recent surveys say. Nonsense, isn’t it?

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The mobile phone tries to grow up

Mark Bridge writes:

The end of civilisation. The dawn of the future. Mobile phones are somewhere in the middle. Once seen as novelties for people with too much money, the mobile phone is now ubiquitous. And with that ubiquity comes an acceptance that they’re just tools. Doesn't it?

Which is why I was surprised to see a news article from Voice, a trade union that wants mobile phones banned from nurseries because of concern about inappropriate photographs.

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Sounding good to me

Mark Bridge writes:

"Sounding good to me". So sang Charlie Dore, back in the day when radio stations started to realise that quality was as important as quantity. "AM, FM, I feel so ecstatic", opined Cliff Richard, although I’m betting he’d have preferred the lack of hiss and crackle on FM stations.

Yet no-one’s really thought much about the quality of a phone call. Until now.

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The landline phone may be fading... but its number still remains

Mark Bridge writes:

In last weekend’s Sunday Times, Ali Hussain asked "Is this the end for the landline phone?"

He pointed out that the average mobile bill almost halved between 2003 and 2008, while landline bills fell by less than a fifth – which has meant the average mobile bill is now lower than the average landline bill. He went on to list fibre-optic broadband, mobile broadband, mobile calls, VoIP calls and satellite phones as alternatives to using fixed-line phones.

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Mixed verdict on mobile phones as cancer cause

Art Chimes of voanews.com writes:

Nearly two-thirds of the people on Earth now use mobile telephones, according to a study by the International Telecommunications Union. But how safe are those phones? Scientists still aren't sure, but some evidence is starting to suggest there may be danger along with the convenience.

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