mobilepayments
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Google building its own NFC-based payments system?
Can't say we're surprised to hear this at all, but Bloomberg BusinessWeek says Google's working on its own NFC-based mobile payments system. That makes perfect sense, given that Eric Schmidt has been enthusiastically extolling the virtues of NFC since just before Google launched the Nexus S -- which, of course, features an NFC chip. BusinessWeek says the system might launch as early as this year, although we think Google's got plenty of infrastructure work to do first -- and it's facing plenty of competition from the likes of Verizon, T-Mobile, and AT&T, who are launching their own Isis payment system, as well as direct device competition from RIM and Apple. Should get interesting -- we'll see if we hear anything at CES this week.
iPhone 4 getting stickers in Japan for mobile payment solutions
NFC technology comes to the iPhone 4 thanks to the Japanese carrier SoftBank, which is offering Sony's FeliCa payment system for the iPhone 4. The system includes an NFC-enabled "seal" that affixes to the back of the iPhone 4 and is compatible with the official Apple bumper case. From the carrier's press release, the system functions independent of the iPhone, so you do not have to install specialized software for the system to work. Three different vendor systems will be available including those from WAON, Nanaco and Edy, a bitWallet solution. This NFC solution will be available for ¥2,980 (US$36) starting February 2011. Of course, iPhone customers interested in NFC technology may want to wait for the iPhone 5 to arrive. The next generation iPhone may include an integrated NFC chip that would let you use your smartphone as an electronic wallet, a security passkey or even an eTicketing device for concerts, conferences and more. Such capabilities would boost the iPhone above the Android-powered Nexus S, which is being used in an NFC pilot program for local businesses in Portland, Oregon. [Via Engadget]
Visa clears DeviceFidelity's In2Pay mobile payment microSD card for use in smartphones
No iPhone? No problem. If you'll recall, we heard back in May that Visa was in cahoots with DeviceFidelity, with the two trumpeting a not-exactly-svelte In2Pay case that would add contactless payment support to Apple's darling. Today, the rest of the world is finally being taken into consideration. The aforementioned firms have just cleared a new In2Pay microSD solution for use in the real world, with the BlackBerry Bold 9650 and the Samsung Vibrant in particular named as compatible. In theory, it seems that nearly any smartphone with a microSD slot could be ushered into the arena, and Visa itself expects to add additional phone models for use with this technology, "including phones based on the Symbian and Windows operating systems." This unveiling is happening after a solid 18 months of testing around the globe, but there's no definitive word on which banks will be offering this to customers. Between this and the sudden interest in NFC, America seems more poised than ever before to slip ever further into an endless pool of debt, and with way less friction than before! We kid, we kid... kind of.
Dispute over Square card reader patent gets litigious
As folks who follow such things may be aware, there's been some dispute over the origin of Square's card reader technology more or less since the company (led by Twitter's Jack Dorsey) went public with it last year. That dispute has now gotten even more contentious, however, with Square and its chairman, James McKelvey, taking aim at REM Holdings and Robert Morley, who actually holds the patent to the technology. The key issue is that McKelvey is not listed as one of the inventors in the patent, despite claims that he was the one that actually conceived the idea in a "flash of inventive insight," and that he and Morley worked together to develop the idea (and later discussed obtaining patent protection with Jack Dorsey). And that's pretty much where things stand at the moment -- Square is requesting a court order to add McKelvey as a co-inventor on the patent, but there's no indication as to when or if that will happen.
AT&T, T-Mobile, and Verizon announce Isis national mobile commerce network
Just in time for the total economic collapse of Europe and the rise of the cyber-nomadic tribes, the kids at Discover, Barclaycard, AT&T, T-Mobile, and Verizon have a name for their mobile phone-based payment system: Isis. Essentially it remains what we heard from Bloomberg a few months back: a system for using an app on your phone to send payments to a POS system using NFC technology. The Isis team thinks it has "the scope and scale necessary to introduce mobile commerce on a broad basis," and we wish them the best. But we know how it all ends anyways: with the lucky among us dead, and the rest of us living in caves, hiding from death-dealing robots, and bartering for what we can't scrounge from the ruins of our once-great cities. PR after the break.
Visa gets Bank of America on board for mobile payments trial, starting in New York next month
It didn't take long for Visa to react to the three-headed beast of AT&T, T-Mobile and Verizon entering the mobile payments arena. The world's foremost payment processing company has just announced that it's about to start a trial of its contactless payment system in partnership with Bank of America. Kicking off in the New York area this September and lasting through the end of the year, the scheme will most likely involve the MicroSD NFC communicator and In2Pay iPhone case that DeviceFidelity has been developing for Visa. No disclosures are being made on the size of this pilot scheme, though we're told that only a "select" group of employees and customers will be getting the mobile payment chips. Don't worry if you miss out on this one, though, as a similar trial is scheduled to begin in October with US Bancorp. That should give you enough time to turn yourself into a high-rolling select customer, right?
Square payment system is coming back in full force by 'late summer'
Unsurprisingly, given the small company and big ambitions behind the project, the Square mobile payments system got off to a shaky start earlier this year. Hardware shortages were resolved relatively quickly, but setting up the proper fraud prevention infrastructure without transactional limits -- which, shockingly, were disfavored by merchants -- threatened to shelve the little credit card reader for a long while. Not to worry, though, as today the Wall Street Journal has word that Square is looking to be back in business, kicking ass and taking card numbers, before the summer is through. We're now at an advanced stage of said season, so it shouldn't be too long before those dongle-assisted microtransactions start flowing again.
AT&T, Verizon and T-Mobile team up to transform your smartphone into a credit card
Contactless payments made using your phone are hardly a new idea in themselves, but when three of the big four US carriers decide to unite behind it, the time might have come to start paying closer attention. Bloomberg reports that AT&T, Verizon and T-Mobile are about to test the NFC payment waters with pilot schemes in Atlanta and three other cities, potentially aided by partnerships with Discover Financial Services and British bankers Barclays Plc. This would require all-new readers for merchants and embedded NFC chips in phones, but we reckon plenty of people might be happy to pay a small premium to streamline their lives that little bit more and leave the plastic behind. Either way, Visa's nascent attempts at conquering the mobile just got themselves a big old cabal-sized competitor.
Square working on 'a credit processing and risk issue' before shipping more card readers
If you've tried to get in on Square's mobile payment system, you know that a critical part of the whole setup is the tiny credit card reader that plugs into your phone's headphone jack -- and in all likelihood, you don't have it. The company just sent out a message to those who've signed up for their service today, saying that a prior hardware shortage is resolved but that it's only half of the problem; the other half, and arguably a more serious one, is that the company needs to find a way to "handle the huge demand for readers and still manage the risk of chargebacks and fraud." So far, those risks have been mitigated by setting limits very low, but customers have apparently complained that they're too low, which is requiring a "rethinking and expanding" of the company's underwriting. Everyone's being assured that they'll be good to go once this whole process is over and clients go through a credit check -- but in the meantime, Square readers might be a little scarce, so it's back to IOUs and pocket change for a while. See the full letter after the break.
FaceCash mobile payment apps are like real money, only with your face on it instead of someone smart
ThinkLink's FaceCash mobile payment system has debuted several apps (for BlackBerry, iPhone, and Android devices) which allow you to pay for things merely by scanning your phone -- and showing off the attached photo to confirm it is, in fact, your own money that you're spending. You sign up, link your FaceCash account to your personal checking and savings account, and you're good to go with participating merchants. The apps can also store credit card numbers and banking information (perfect for when you lose your phone during a night of heavy partying), making it easier to leave your wallet or purse behind... or so they say. Sadly, FaceCash currently only has merchants in California, and really, who wants to live there?
Square mobile payment system goes live on iPhone, iPad, and Android this week (video)
We've been intrigued by the Square Payment System since it first ditched its Squirrel costume back in 2009, and now it appears we're on the eve (or eve of the eve, or pretty close anyway) to its release for not only the iPhone, but for the iPad and for Android as well. The software is said to be hitting App Stores and Markets this week, working with a sugar cube-sized card reader that pops into the 3.5mm headphone jack, a device that the company is giving away for free to those who sign up. Using it will not be free, with retailers paying fees starting at 2.75 percent plus a 15 cent surcharge, but that's considerably cheaper than many other options out there (which often require costly hardware to boot). There's another new video after the break, and we can't wait for these things to start showing up at the farmer's market. No more early morning ATM runs! Update: Apps for the iPhone, iPad, and Android devices are now live in their respective download abodes. None will require that you enter a single digit of your credit card. [Thanks, Ed]
First Data and Tyfone announce partnership for NFC payments by microSD card
We've already seen Visa team up with DeviceFidelity to deliver NFC payments via microSD card, and it looks like they now have some company from First Data and Tyfone, who have just announced a partnership of their own to help bring the technology to the cellphone-toting masses. At the heart of their system is Tyfone's SideTap card made by NXP Semiconductors (pictured after the break), which is not only able to function as an actual memory card in addition to a NFC payment device, but should cost about the same as a regular memory card of the same capacity as well. Using a microSD card instead of a phone with built-in NFC technology also cuts out the need for carriers or phone manufacturers to be involved, which is apparently where First Data comes in, as it will responsible for bringing the cards to consumers (in addition to dealing with retailers, carriers and financial institutions). Complete details on a rollout still seem to be a bit up in the air, but the two companies are promising that it will hit the market in the second half of 2010, with trials slated to begin mid-year.
Mophie iPhone credit card reader coming to a CES near you
iPhone accessory maker and recession antidote regular Mophie is about to make the most buzzworthy move of its short history by offering a credit card reader and accompanying transaction app for the Apple handset. Positioned as a direct competitor to Jack Dorsey's Square iPhone Payment System, Mophie's solution looks to be integrated into an iPhone case -- making it possible to keep the reader on permanently, albeit at a slight cost to your device's aesthetics. The decidedly cube-shaped Square system has a less ergonomic design, but we suspect that the winner (if either of these two succeeds) will be primarily determined by the usability of the app and affordability of the service. Look out for more info to emerge at some point during the maelstrom that will be CES 2010.
VeriFone Payware Mobile iPhone peripheral looking ready to square off with, er, Square
Sure, it's not quite as elegant as a little cube jutting out of one corner of the iPhone à la Square, but it looks like the Payware Mobile could certainly double as a pretty sturdy case should it drop. More importantly, the backing of VeriFone means this mobile payment peripheral has some pretty important backing and should be able to hit the ground running. That magical date should be January 15th of next year, free on a 2-year Payware Connect contract, and pre-orders are now live on the website for those who want to join in on the phone. Just one word of advice: when you hand the iPhone over for someone to sign as proof of purchase, make sure you're able to outrun the chap. Just in case. [Thanks, Jason]
GSM Association proudly endorses NFC and Carrier ENUM
The GSM Association has been gung-ho about near-field communications (NFC) for a good while now, but just recently at a meeting in Macau did it take the opportunity to officially proclaim its support for NFC and Carrier ENUM. As for the former, it's urging manufacturers to have NFC technology (which is most commonly used for mobile payment systems) in "mainstream mobile phones by mid-2009 by using the standardized single wire protocol (SWP) interface, which enables communications between NFC hardware and a SIM card." Furthermore, it gave a hearty thumbs-up to ENUM (previously known as Number Resolution Service), which is an IETF-sanctioned standard for converting traditional phone numbers into IP addresses. It also announced that a related service (dubbed PathFinder) was generally available to mobile and fixed network operators from NeuStar. All this sounds fine and dandy, but what we're really interested in is what these folks did in Macau after the business was settled. Lucky...[Via phonescoop, image courtesy of ISOC]Read - Official GSMA support for ENUMRead - Support for NFC / ENUM
Mobile payments coming to Mexico
Like Canada, Mexico's getting mobile payments, too, but these are just a bit different in two very important respects. One, this is a full-fledged service being underwritten by Telefonica, Iusacell, Citibank, and BBVA -- not just a trial. Two, unlike the NFC-based Canadian system, this one will rely on text messages to get the cash flowing. The service is expected to launch in the next few months and get backing from restaurants, stores, and taxis, all places where we can recall specific times when we would've rather kept our wallets in our pockets when the time came to pony up. Of course, considering how miserably unsuccessful mobile payments have been across North America so far (we've still got our fingers crossed that NFC is going to take off one of these days), this one could die off as quickly as it started unless it catches a break and goes big.
NFC-equipped phone surfaces at FCC... with Citi logo
We've handled handsets with unorthodox keypads before, but there's quite a bit more about this here device that's off-kilter than just a unique method of input. Discovered in the always unpredictable database of the FCC, the Mobicom-built mobile plays on the 850 / 1900 GSM bands and features a built-in MP3 player, file manager, speakerphone and accelerometer -- you know, for accessing icons by simply tilting the phone. The most astounding inclusion, however, isn't the integrated NFC technology that allows users to make payments on the go, but rather the unmistakable logo of a financial services company. Sitting front and center. On a cellphone. Something tells us this thing better print greenbacks if it hopes to seriously lure any suits away from their precious BlackBerrys. [Via PhoneScoop]
Kenya gets SMS-based money transfers
Mobile commerce is taking some parts of the world by storm right now, and Kenya didn't want to be left out of the party. The country's largest mobile carrier has introduced a service to allow monetary payments to be made by SMS, guaranteeing that just about any customer can use the new service. Safaricom's M-Pesa mobile transaction service was developed by Vodafone and is expected to revolutionize Kenya's banking industry according to official reports. Not only will all Kenyans with a Safaricom subscription be able to make mobile payments by text message, but they'll also be able to keep a decent amount of pocket change in a "virtual account" to be used for mobile purchases. [Via textually.org]
Mobile carriers making it easy to send money home
With tons on top of tons of content making way to the mobile space (where are all those .mobi websites?), it seems natural for payments and the processing of transactions to make their way to the mobile arena as well. But without the support of major banks involved, these efforts won't go far -- but good news is afoot. This week at 3GSM in Barcelona, mobile carriers are teaming up with banks to make it easier and cheaper to send money over the airwaves. No, you can't turn bills into RF waves or anything, but the new partnership (if it can be called that) will allow immigrants and migrant workers to send money home using mobile phones. We're not sure from the PR stuff, but everyone else won't be able to use this new "service". Just kidding -- but when sending small amounts of cash from here to there, those that make smaller piles of it need a method without fees that eat into, well, their money. Can you imagine a 24% fee for sending $50? Goodness sakes.
