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Editorial: Square gets the attention, but credit cards rule
Lower Manhattan, Pearl Street, the Financial District. A Starbucks with broad windows, great for people watching. Sipping my $5 flavored coffee, I watched a homeless man sit on the sidewalk. I liked him immediately: his sharp gaze and thoughtful expression. When I left, I squatted down next to him and put five bucks in his jar, contributing the cost of my first-world coffee to the man's case for survival. We talked. He knew his tech, this man of no possessions, describing his favorite productivity gadgets of the past decade, scorning Apple for form over function. He had been living on the street day and night for two years. My five dollars was "huge," he said. I knew that was true only microcosmically. He liked cigars. That's where the cash would go. Meanwhile, Starbucks had recently cut a deal with Square, one of the hottest startup stories of the season, so that people with five dollars to spend on coffee needn't pull out a wallet and ponder their privilege.
Square competitor Groupon Payments launches today, promises lowest cost for retailers
Popular deal website Groupon is venturing into the world of smart phone-based credit card payments today, launching the Groupon Payments initiative nationwide after a successful pilot program is the San Francisco Bay Area earlier this year. Groupon's boasting a guaranteed lowest cost pricing to merchants using Groupon Payments for credit card transactions -- MasterCard, Visa, and Discover will cost retailers 1.8 percent of credit card sales, plus a $0.15 per transaction fee, while American Express will cost three percent of credit card sales, plus a $0.15 per transaction fee. The biggest competition in the space comes from Square, headed by former Twitter co-founder Jack Dorsey, which charges a flat 2.75 percent rate on all transactions against all cards, though PayPal, Intuit, and Verifone all offer similar services. Today's news matches up directly with leaks we saw back in May, adding on that merchants will see the day's credit card purchases credited to their bank accounts overnight, rather than waiting two to three business days (per standard practice). Beyond credit card services, Groupon's Merchants app also accepts Groupon daily deals, which helps elucidate why Groupon would be interested in entering the mobile credit card payments market in the first place (beyond it being a lucrative market unto itself, of course). Interested parties can sign up over on Groupon's website, and snag the free payments app right here. Finally -- finally -- you'll be able to sell all those $10 gift certificates to Chili's you've been hoarding. Perhaps charge $5 a pop for their $10 value and ... is this a paradox? This might be a paradox.
MasterCard announces PayPass User Interface SDK, lets devs roll their own NFC payment-enabled apps
MasterCard has been in the cashless payment game for quite a while, and now it's hoping to get more developers on the PayPass bandwagon with its freshly unveiled user interface software development kit. By leveraging the SDK, programmers will be able to bake the firm's NFC payment system, which is compatible with over 70 handsets, into their own Android or BlackBerry OS 7 apps. The kit is free to license and includes API code libraries, documentation, a developer guide, sample code, a white-label reference application and a testing suite. Once apps are created with the SDK, they'll have to go through MasterCard's approval process before they go live. Yearning to code PayPass-enabled smartphone software? Check out the press release below for more details.
Isis mobile payment system primed for September launch, supported devices revealed
You've known it was coming, but Isis has been so quiet on the mobile payments front in the past few months that you might've forgotten the score. Now, the joint venture backed by AT&T, T-Mobile and Verizon has announced that it'll debut its system in Austin and Salt Lake City next month. At least part of the delay is attributed to its shift in strategy, when Isis shelved its plans to process payments through the carriers themselves and instead work with MasterCard and Visa. Isis representatives have declined to elaborate on future expansion plans. Coinciding with the recent update that enabled Isis support for T-Mobile's Galaxy S II, MasterCard has come clean with a list of devices that'll receive similar treatment. Specifically, those in the US can expect the Droid Incredible 4G LTE, One X, Amaze 4G, Galaxy S III to gain Isis support. Naturally, the possibility remains open for other devices as well, and if you'd like to see the complete list of candidates, make sure to check out the PDF below.
Everything Everywhere signs 5-year deal with MasterCard for mobile payments
MasterCard has switched up its NFC and Mobile Payments deal with T-Mobile and Orange to include corporate parent / sibling Everything Everywhere. The pairing will leverage the existing Orange Cash standard to get users onto the service, building out a person-to-person payment system similar to Pingit as they go. It's reportedly angered rival networks Vodafone and O2, still smarting from last week's 4G news, who were co-operating on a unified mobile payments service called "Project Oscar" that would have standardized the system nationwide. Given that Vodafone has partnered with Visa and O2 is trying things out on its own, perhaps the next time you choose a phone, you'll have to side with your card-provider of choice, too.
MasterCard denies BitCoin card rumors, BitInstant says it's still on track
Well, BitInstant is insistent that it will launch a BitCoin debit card, but MasterCard is claiming it will not be part of the plans. After a mock up of the plastic made the rounds featuring the company's logo, the financial powerhouse felt it necessary to reach out to us, clarifying its non-involvement. "MasterCard has no relationship with BitInstant. There are issuers who allow the conversion of Bitcoins to US dollars and other currencies, delivered on prepaid cards. However, we're not aware of this particular programme from BitInstant." Of course, if you read the transcript of Charlie Shrem's chat announcing the plans, he never actually names MasterCard. The logo was likely meant as a placeholder -- one that some outlets took a little too literally. Interestingly, this doesn't actually mean that MasterCard won't be involved... just that the company isn't at this point in the process. BitInstant released its own statement, just hours after the card house contacted us, saying that it has been working with MasterCard affiliates, but had yet to submit to the financial firm directly. "The card program is moving forward and the arrangement with MasterCard will be handled in due time at the proper stage of the process by the partners who work directly with that company." So, what have we learned today? Not a whole heck of a lot actually, other than the fact that putting out a debit card is a complicated business. You'll just have to stay tuned to see how this shakes out.
Google, PayPal, VeriFone and US carriers band together to form Mobile Payments Committee
There's little doubt that mobile payments hold a ton of potential for the future of commerce, but without proper direction (and willingness for adoption), the technology remains little more than an impractical curiosity for the majority of consumers. In an effort to define a way forward for the mobile payment industry, a large number of heavy hitters have banded together under the umbrella of the Electronic Transactions Association to form the Mobile Payments Committee. Not only does the group include all four of the top US carriers, but also Google, Isis, VeriFone and PayPal. Add to that financial institutions such as Wells Fargo and Capital One, along with American Express, Discover, MasterCard and Visa, and you'll quickly realize that this group is playing to win. Primary goals of the Mobile Payments Committee include fostering relationships with merchants, ensuring consumer access to modern payment methods, exploring best practices and ensuring interoperability of networks, equipment and financial institutions. The group will also engage in lobbying activities with legislators and regulators, and will additionally work to educate both merchants and consumers about the potential of mobile payments. With so many key players (and competitors) sitting around one big table, what wouldn't you give to be a fly on the wall during those meetings? For a little extra insight, just hop the break for the full PR.
MasterCard and T-Mobile to bring NFC payments to Europe in Q3 (video)
Poland and Germany could be the next two countries to get smartphone payments, powered by MasterCard and Deutsche Telekom. The SIM-based NFC solution will utilize the US bank's ClickandBuy service for processing and will be available to T-Mobile customers, rolling out to Poland in Q3 of this year and Germany in 2013. This latest partnership comes on the heels of Vodafone's pairing with Visa, which is also said to be making a push for the German market. What remains to be seen is whether or not there is in fact a demand for mobile payments -- the technology has yet to take off in the US, despite an influx of funding and infrastructure from MasterCard and Google. NFC is no doubt the future of cashless transactions, but it likely remains a few years away from hitting the mainstream, with compatible devices still limited, on both the customer and retail fronts. Hit up the links below for a closer look at DT's push to conquer the European market, one NFC-equipped SIM card at a time. Then jump past the break for a quick intro, compliments of Deutsche Telekom CEO Rene Obermann and MasterCard CEO Ajay Banga (the two seemingly random gentlemen that you may have noticed above as well).
Nokia 808 PureView enables NFC image share, mobile payment apps to come
Rounding off a busy day of shooting with Nokia's new imaging mistress, the company's Vesa Jutila, Head of Symbian Product Marketing, hooked us up with some more developments for the 808 PureView, specifically to do with NFC. He told us that picture sharing would be possible across devices -- not limiting itself to fellow PureView smartphones, and differentiating it from another hotly anticipated future smartphone. We'd err against using it on those full 38- or 34-megapixel images though, as they will often measure over 10MB and it could take some time. Further, Nokia's already applied for Mastercard and Visa accreditation to get those mobile wallets up and working. We're curating our own exclusive image gallery as we speak and they're likely to whet your appetite for more oversampling goodness. Expect a fully-fledged review with a final model in the not-too-distant future.
Live from CTIA with FCC chairman Julius Genachowski
The first keynote of the week is a doozy. We've got Gary Flood from MasterCard, Patrick Riordan president of Cellcom and Joe Kennedy the CEO of Pandora. Not too shabby. But, the big fish in this four person pond is clearly FCC chairman Julius Genachowski. The chief regulator of the wireless industry here in the US will be taking to the stage to talk... well, we're not entirely sure. But, if the topic of spectrum doesn't come up, we'll be quite surprised. May 7, 2012 10:30 AM EDT
MasterCard introduces PayPass Wallet Services, Online and API at CTIA 2012
MasterCard's PayPass is certainly one of the bigger players in the contactless payment scene. But, simply putting a few thousand branded payment terminals in stores across the nation isn't enough. The next step is expanding that empire, not only in terms of locations and handsets, but by turning the phone into just an accessory in a larger ecosystem. PayPass Wallet Services is a new umbrella product that includes an online payment system, a branded service and an API that allows developers to integrate PayPass into their own proprietary offerings. Simply put, PayPass is no longer a product, but a platform. The service remembers not only credit cards, but shipping addresses and other identifying info that streamlines the shopping process, while the API means that others can build value added offerings around PayPass. There's even a dedicated Android app. The company is hoping to have the system ready for a broad roll out by the third quarter of the year. When that time comes, a pile of partners have pledged to support it in various ways. The names on that list should ring at least a few bells: Intel, Barnes & Noble, Newegg, MLB and American Airlines. It all seems pretty impressive (though, we'll reserve judgement till we get to try it out). Your move, Google. Zachary Lutz contributed to this report
Join us for FCC chairman Julius Genachowski's CTIA keynote tomorrow at 10:30AM ET
Ain't no party like a Genachowski party, cause a Genachowski party don't stop. So long as you've got the spectrum and bandwidth to keep your your Niki and the Dove Pandora station bumpin'. The festivities here at CTIA Wireless 2012 in New Orleans are already underway, unofficially, but the true fun really kicks off tomorrow with a keynote from FCC chairman Julius Genachowski. The event will also feature appearances from Gary Flood of MasterCard, Joe Kennedy (the president of Pandora) and Cellcom CEO Patrick Riordan. What's the topic du jour? You'll just have to check back here at the time listed below to find out. May 8, 2012 10:30 AM EDT
MasterCard gives PayPass blessings to HTC One X, 16 other NFC phones
MasterCard is widening the universe of phones that officially support PayPass in a big way, with a new MasterCard PayPass Ready program certifying that devices with NFC will play nicely with its mobile payment system. A total of 17 phones are part of the first wave getting the official A-OK. Some of these are known quantities already using PayPass, like the LG Viper 4G LTE and the Samsung Galaxy Nexus HSPA+, but others are new to the PayPass ways. Among the picks are the HTC One X, Intel's smartphone reference device and the Nokia Lumia 610 NFC. A raft of BlackBerrys and lower-end Samsung Galaxy phones are likewise in the fray. While only a handful of these might ever work with Google Wallet or other US-focused NFC payment methods, you can check out the full roster in the release after the break.
MasterCard reveals roadmap for our electronic payment future: EMV in, magnetic strips out
It's been over fifteen years since MasterCard, Visa and Europay developed EMV technology to make your credit cards more secure, but it has yet to really catch on here in the US. However, MasterCard has created a master plan to help usher in the EMV era and sound the death knell for the magnetic strip. Why? The EMV infrastructure is far more fraud-resistant because each transaction is authenticated dynamically using cryptographic algorithms and a user-specific PIN. That's why MasterCard plans to help build out the EMV POS infrastructure by April of next year and have its secure e-payment system functioning at ATMs, online and with its myriad mobile payment options as well. For now, the nuts and bolts of how the credit card firm plans to bring its plan to fruition are few, but more details will be forthcoming, and there's a bit more info at the source and PR below.
MasterCard's QkR mobile payment system enters trial in Australia
MasterCard is all over the map when it comes to mobile payments. The credit company will partner with anyone, anywhere, anytime if it means getting new customers and making a buck on the deal. Its latest offering is called QkR, an Australian effort with support from the Hoyts chain of movie theaters and Commonwealth Bank. The initial trial run will be at La Premiere cinemas, where customers will be able to order and pay for food and beverages right from their seat with the QkR app. To initiate the transaction a you scan the QR code or tap the NFC tag attached to the arm rest, and a staff member delivers the trough of popcorn and kiddie pool of coke right to your seat. Now all we need is this sort of high-end treatment in American movie theaters. Check out the video after the break to see it in action.
RIM and Turkcell partner to bring NFC payments to Bold 9900, Turkish pazars
Turkcell subscribers looking to make a purchase from their favorite Istanbul bazaar now have one extra payment option -- if they're a BlackBerry Bold owners, that is. Research In Motion and Turkcell have announced the availability of touchless NFC payments for the BlackBerry Bold 9900 via Turkcell's Cep-T Cüzdan mobile application. Interested parties can visit their local Turkcell retailer to trade-up to an NFC-compatible SIM, load the Cep-T application and begin swiping their Berry wherever (worldwide) MasterCard PayPass is accepted. Purchases under 35TL (around $20) won't require any additional verification, though procurements over that threshold will require you to enter a PIN on the handset or tender your signature. Hopefully, with MasterCard, Visa and Google all aboard the NFC bandwagon, 2012 will see a major push towards the technology here in the US.
Moneto NFC microSD to bring contactless features to any Android phone
DeviceFidelity and Spring Card Systems have teamed up on a NFC-capable microSD card that will hopefully forgo the need of buying specific mobile handsets for the privilege of contactless payments. The card, which has been in development for a few years, houses an NFC radio and antenna that deals with payments through MasterCard's PayPass system. Moneto's iPhone case is already available, offering swipe payment delights for iOS users for $80, and includes $10 of spendable cash. The microSD card is set to land in the next few weeks, pegged at $30. Both will be available at the source below, with plans to support several -- as yet unnamed -- Android devices by Q2, rolling out further throughout 2012.
Confirmed: Intel's Ivy Bridge chips will support NFC
Well, looky here. We're reporting live from a keynote on Ultrabooks starring Intel's Mooly Eden, where the star exec just revealed that the company's forthcoming Ivy Bridge chips will support NFC, demoing a transaction involving a laptop and PayPass-enabled MasterCard. Suffice to say, we haven't really seen this technology incorporated into laptops, though it is reminiscent of the older TransferJet standard (not that that ever took off). Unfortunately, Chipzilla's otherwise being mum on details: it's too early to know which credit card companies, software developers and laptop makers are on board, but hopefully Intel's backing is enough to spur some innovation here. Billy Steele contributed to this report.
MasterCard and mFoundry partner to offer NFC payments within mobile banking apps
Hoping to add more punch to the standard mobile banking app, mFoundry has announced that it will be making MasterCard's NFC feature PayPass available in its financial apps. What that translates to for the mobile banking user is a quick and easy way to pay without having to use an additional service like Google Wallet or whatever Isis has up its sleeve. mFoundry currently provides mobile banking services for more than 560 financial institutions and credit unions including PNC, Bank of America and Citi -- so chances are, if you're using a mobile banking app, it's powered by mFoundry. Sadly, the same cannot be said for the extremely limited amount of NFC phones that can actually support the feature. Perhaps having the option within a standard banking app will help the trend take off -- at least amongst those with NFC phones.
Intel and MasterCard to offer Ultrabook users 'safer' NFC checkout via PayPass, impulsive shoppers rejoice
Entering a 16-digit credit card number may be a thing of the past with a new initiative from MasterCard and Intel, which allows users to checkout online by tapping a PayPass-enabled card, tag or smartphone to their Ultrabook. Calling the checkout "safer" and "simpler," Intel is bringing its Identity Protection Technology to the potluck, giving shoppers two-factor authentication and chip-based display protection when forking over that hard earned cash. Here's how it all works: when you tap a NFC smartphone or other PayPass-enabled device, it will communicate with the Ultrabook, generating a six-digit code from the embedded processor or from within the Manageability Engine. The ME hardware, encrypted with third-party algorithms, then transacts with the e-commerce site, hopefully offering shoppers more protection than standard software solutions. Since using the feature requires an NFC-connected device as well as the Ultrabook and a username and password, forgetful folks who tend to misplace their phone or computer won't have to worry about unwarranted spending. Sadly, the solution won't protect your wallet from the perils of a late night shoe shopping spree. Check out the full PR after the break.
