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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: 9th July 2012

MeeGo... and me come back again

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It was a good week for technology stories hitting the mainstream news, thanks to the apparent appearance of a Higgs boson, Sir Alan Sugar’s YouView online TV service and football goal-line technology.

Mobile-related news hasn’t been quite so big, although plenty of well-known names have turned up in the headlines. What’s also been turning up – rather more than usual – is the presence of WiFi.

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Last week at The Fonecast: 25th June 2012

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Microsoft started last week with news of an own-brand rival to the Apple iPad. The new Windows-based Microsoft Surface tablets will start to appear later this year, although full details of the specifications – including whether or not there’ll be cellular connectivity – remain unconfirmed.

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Adding a little extra to every mobile sale will make a big difference

Mark Bridge writes:

Is there any product that offers as much potential for additional sales as the mobile phone?

When I visit a coffee shop to buy a coffee, I’m often asked “would you like any pastries or muffins with that?”

On the one occasion that I bought a new car, I was offered the option of paying extra for different colours, for floor mats and for a fancy stereo. When you buy a DVD player or a games console, it’s pretty obvious you’ll be paying extra for entertainment.

Yet, when you consider the variety of add-ons available in the mobile industry, I’d say smartphones were in a league of their own.

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Last week at The Fonecast: 18th June 2012

What next for Nokia?

Mark Bridge writes:

Oh, how cheerful we were last Monday. Apple previewed iOS6, which will bring mobile tickets (and 200 other new features) to the iPhone and iPad this autumn. Vodafone cut the cost of using your phone in Europe with its flat-rate £3-per-day EuroTraveller deal and a few days later Three came up with its own ‘unlimited’ European data roaming.

Yet by the end of the week there were fewer smiles in the mobile industry.

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Last week at The Fonecast: 11th June 2012

Vodafone and O2 team up to battle Everything Everywhere

Mark Bridge writes:

With just three working days for many people in the UK last week, you’d be forgiven for thinking nothing much would happen. However, you’d be wrong.

Telefónica UK and Vodafone UK announced plans to pool the basic parts of their network infrastructure in an expansion of their existing ‘Cornerstone’ partnership. It means that Vodafone and O2 will be using the same base stations for 2G, 3G and 4G service across the country. Responsibility is being split down the middle; Telefónica UK will take care of the east, while Vodafone UK will have the west. I imagine the dividing line running conveniently between the headquarters buildings in Slough and Newbury respectively.

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