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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

Last week at The Fonecast: 4th March 2013

What happened at Mobile World Congress?

Mark Bridge writes:

We’re back from Mobile World Congress – and what a show it was. Located at a new site that saw more visitors than ever before, the show had everything… except any particularly obvious theme from hardware manufacturers. Last year was the year of the quad-core smartphone, this year there was plenty of incremental innovation but nothing truly startling.

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Cell phone use increasing pedestrian danger

Faiza Elmasry of voanews.com writes:

Teenagers are often warned against texting on their cell phones while they are behind the wheel of a car, since distracted driving can lead to serious automobile accidents.

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Mark Bridge writes:

I like a challenge. I like learning. Ask me to do a spot of research and I’ll happily pore over books, trawl the internet and have lengthy conversations into the night.

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Author: The Fonecast
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Article rating: 5.0
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James Rosewell writes:

8 months ago I moved my main smartphone from Android to Windows Phone. I had entered a simpler world. There were less applications, no tethering option, voice dictation sucked and I couldn’t get a multi-SIM device. But overall I survived.

Then I started travelling more. I moved back to Android a few weeks ago... and what a disappointment.

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Last week at The Fonecast: 18th February 2013

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Mark Bridge writes:

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There are the announcements delayed until MWC begins because the company wants to be part of the buzz at Barcelona. And there are the announcements made in the fortnight beforehand because they don’t want their story to get lost.

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