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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

T-Mobile and Orange isn't a big deal

Mark Bridge writes:

It’s the telecoms industry deal of the year. T-Mobile and Orange form a joint venture. The UK’s "big five" networks (or "big four", depending on your predilection for Hutchison 3G UK) will now be a "big four" (or "big three", if you don’t include 3. Confused yet?)

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Here’s one for the laydeez

Mark Bridge writes:

Once upon a time, I’d probably have described myself as a feminist. These days I probably wouldn’t. Not because my opinions have changed, just because I’ve realised there are a lot of women who’d argue that I can’t be a feminist because of my male undercarriage. And me, by birth and possibly by education, therefore being part of the problem – not part of the solution.

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Mobile phones cause brain tumours?

Mark Bridge writes:

Mobile phones fry your brain. That’s been a warning from some people pretty much since the first cellphones appeared. And although the mobile phone industry has changed and the technology has advanced, the warnings haven’t gone away.

Ten years ago, the Independent Expert Group on Mobile Phones was set up to look at concerns about the possible health effects from the use of mobile phones, base stations and transmitters.

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Enthusiasm is my enemy!

Mark Bridge writes:

Enthusiasm is one of the great intangible powers of the world. It’s attractive, it’s compelling and sometimes it’s dangerous. And – yes, I’m going to try to keep this relevant – it sells mobile phones.

I was reminded of this the other day when I read a Sunday Times article about Apple’s Steve Jobs.

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A Blyk day

Mark Bridge writes:

Marketing, not unlike football, is a funny old game. I don’t claim to be an expert in either… but every so often something happens that starts sowing the seeds of doubt in my mind. And no, I’m not thinking about Liverpool's penalty claims in Sunday’s game at Tottenham. I’m thinking about Blyk.

Here at The Fonecast, we like Blyk. They shook up the industry and worried some of the big names when they arrived with their youth-focussed virtual mobile network two years ago. We interviewed their MD Shaun Gregory in May last year. And now they’re quitting the MVNO game in favour of arranging advertising deals for networks.

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