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FIS acquires mobile banking guru mFoundry for $120 million
You may not be very familiar with mFoundry's name, but you'll probably know its work if you're reading this site: it's part of a deal with MasterCard for NFC-based mobile payments, powers many banking apps and wrote the earliest mobile app code for Starbucks. As such, it's no small deal that payment giant FIS just bought full control of mFoundry for $120 million. FIS isn't shy about its aims and sees mFoundry as the ticket to covering a mobile banking space that's growing quicker than other fields. Not that mFoundry will necessarily feel like a pawn -- its audience potentially grows to the 14,000 banks that FIS has for customers. We'll just need to wait until after the deal closes later in the current quarter to see what the union will bring.
RIM's mobile payment solution gets thumbs up from Visa
The final pieces of the puzzle are falling into place just ahead of the big reveal on January 30th. The carriers are on board, there's apps galore and now Visa has approved RIM's Secure Element Manager (SEM) for its mobile payment system. Being given the green light means that BlackBerry wont have to worry about being upstaged by the flood of Android devices coming down the pipeline with NFC payment solutions embedded in them. It's also a major boost to the SEM platform developed by the Canadian firm which has already won the backing of many carriers in its homeland, like Bell, Rogers and TELUS, but has struggled to gain a foothold in the US. For more, check out the PR after the break.
US Bank releases NFC iPhone case for 'Go Mobile' payment service trial
US Bank has announced it is kicking off a limited trial of its Go Mobile payment service via an NFC-enabled iPhone case. The Go Mobile wireless payment service is initially being rolled out in Salt Lake City, Utah, and Portland, Ore. US Bank customers in either city can visit a bank branch for information on how to obtain a case. It's not immediately apparent if the cases will be free to customers or if there's a charge. On their website US Bank says the requirements are "an iPhone 4 or 4S and [the ability] to qualify for a US Bank FlexPerks Travel Rewards Visa Signature card to use the US Bank Go Mobile Payment Service." The NFC-enabled case can be used at retailers in either city that use Visa's payWave terminals. Apple has chosen to hold its payment cards close to the vest while rival phones using Google's Android OS experiment with the Google Wallet NFC payment system. Although there were hints that iOS 6 would include some payment/digital wallet capabilities that might be supported by future mobile hardware, the current Passbook feature delivers quite a bit of payment and check-in power -- but saves a lot of engineering by simply displaying 1D barcodes that work with conventional laser scanners at retail, and 2D codes that work with airport/Amtrak check-in and other scanners.
Starbucks begins selling Square card readers at 7,000 coffee shops
It wasn't too much of a surprise to see Starbucks begin accepting Square payments at many of its coffee shops last year, but the company's latest expansion of that partnership is a bit more unexpected. It's announced today that it has started selling Square card readers at some 7,000 locations across the US, letting customers pick up a means to accept credit card payments along with their beverage of choice. That's only the latest retail deal for Square following partnerships with Apple, Walmart, Best Buy and others, and as with those the readers themselves are essentially free -- you pay $10 up front, but get a $10 credit that you can redeem after you activate your account.
VeriFone retreats from mobile payments, says acquiring users 'fundamentally unprofitable'
After joining the mobile payment bandwagon last spring with Sail, VeriFone is ready to scale back its efforts in the venture. "Our experience through 2012 with tens of thousands of these micro-merchants tells us that the standalone economics of micro-merchant acquiring are fundamentally unprofitable," the firm's CEO, Doug Bergeron, said in a quarterly conference call. According to the head honcho, the cost of wrangling up new business users through ads and the like "will never justify the razor thin-margins produced by merchants with infrequent volumes and extremely high attrition." As a result of those costs and the risks of fraud associated with payments, the outfit will be handing off the user recruitment side of Sail to banks and "merchant acquirers," and plans to sell some of the platform's related assets. Despite the company's retreat from mobile payments, Bergeron considers the only way others could survive in the space is to provide merchants with auxiliary services, such as digital wallets, which competitors such as Square have begun to dabble in. VeriFone may have soured on mobile payments, but it's highly likely we'll see others give it the old college try as well.
Square starts offering gift cards, ties them into Passbook for iOS 6 recipients (video)
Square payments have so far been self-centered affairs that won't let us share the wealth with others. In rather convenient timing for the season, updates to Square Register and Square Wallet for Android and iOS have made a little of that sought-after generosity possible through the introduction of gift cards. Americans can now give and receive credit for any location that uses Square Register to process payments: if friends would like nothing more than to treat themselves to triple-shot espressos at the local indie coffee shop, you can make their day. The update also brings a treat for the Apple-inclined who've kept up-to-date with iOS 6, letting them redeem their cards quickly through Passbook instead of diving into Square Wallet or QR codes printed on old-fashioned paper. We're still waiting on word of gift card availability for our Canadian friends, but most everyone in the US just hast to check for the relevant app updates to spread some affection.
Intuit GoPayment comes to the UK, renames itself Intuit Pay
In a bid to catch mobile payment rival Square napping, Intuit GoPayment is leaping across the pond to begin an assault on the UK. It's certainly putting the effort in, having had to rework its hardware to be compatible with Chip-and-Pin and being forced, for legal reasons, to drop the "Go" and "ment" parts of its name. The service is currently in a limited trial before being rolled out to switched-on stallholders and itinerant fraudsters (we kid) nationwide.
Visa teams up with RBS for V.me's first UK outing
Soon after getting V.me past the beta stage, Visa has signed up with old partner RBS for the UK launch of the digital wallet service. RBS and NatWest customers have started playing with the PayPal rival, and a full-blown rollout is aimed for spring 2013. While BBVA is slated to be the first financial institution to bring V.me to Spain, a French outing is planned for later this year. With mobile payments looking up, not least when springing for a cup of latte, it's yet another step leading towards a cashless world -- albeit a world where plastic still rules.
Vodafone and Visa announce mobile payments app for Android-toting Aussies
Sometime next year, Vodafone subscribers in Australia can expect to taste the sweet fruit of mobile payments, which comes thanks to the carrier's partnership with Visa. Computerworld Australia reports that Vodafone SmartPass is currently being tested on Android phones in the land down under, which relies on an NFC-enabled SIM card. It's also said that the carrier plans to introduce a Windows Phone app, although it has no intention of developing a solution for iOS, which is due to the iPhone's lack of NFC. While mobile payments still remains a mere pipe dream for many, it's said that Vodafone will eventually bundle the SmartPass app on all smartphones that support NFC. Unfortunately, the technology may remain cumbersome, as it'll require users to load currency into a prepaid account for use -- something Google has already kicked to the curb. If you'll recall, Vodafone first announced its initiative with Visa in February of this year, although at the time, it was said that only a few European counties would make the initial cut. To learn more about what Vodafone has in store for its Aussie constituency, feel free to hit up the source link.
CIBC Mobile Payment App reaches BlackBerry App World for the rare chance you can actually use it
Rogers kicked off Canadian NFC mobile payments at the start of the month through what was mostly a ceremonial gesture -- until the CIBC app arrived, locals simply had to wait. It's at last time try some Suretap mobile shopping now that the CIBC Mobile Payment App has popped up in BlackBerry App World. As promised, the title will let Canucks tap to pay with a credit card (up to $50 at once) at the 17 store chains offering use of a MasterCard PayPass or Visa PayWave terminal. The catch remains the sheer number of conditions that need to be in place: on top of requiring an NFC-aware SIM card, a CIBC credit card and the right stores, the early software only works its magic with the BlackBerry Bold 9900; Curve 9380 support depends on a future update. Having the crucial app is still a step forward, and the handful of trailblazers can always recount tales of buying Timbits with their Bolds while those on other platforms have to sit tight until 2013.
Square reaches $10 billion in payments per year, stays ahead of a growing pack
It was just this spring that Square had reached a grandiose $5 billion per year payment rate and cemented its position at the top of the mobile payment processing field it practically started. Any attempts to catch up just got a lot harder now that the startup has crossed the $10 billion mark, only half a year later. A fifth of that new rate came in the past two months and hints that the company isn't about to slow down anytime soon. The increase doesn't have any clear driver, apart from wider media exposure, but founder Jack Dorsey notes that this doesn't include the Starbucks deal that took effect just days ago. We know the rocket-like pace won't last forever; all the same, the record-high levels of business undoubtedly give Square a lot of competitive padding when a deluge of recently established alternatives are still getting started.
Visa's V.me digital wallet service graduates from beta with 53 banks, 23 retailers on board
After roughly a year since its unveiling, Visa's digital payment platform V.me has emerged from beta with support from a total of 53 banks, including PNC and U.S. Bank, and 23 retailers. If V.me has escaped your memory thanks to the proliferation of electronic payment options, you'd be forgiven. For those in need of a refresher, the service lets users check out at participating online stores using a one-click solution that remembers credit card details from multiple providers (American Express, Discover, MasterCard and Visa) in addition to billing and mailing addresses. Visa's Global Head of eCommerce, Jennifer Schulz, told TechCrunch that the firm is planning on making mobile apps and bringing the service to checkout terminals next year. How does the company plan on standing out from the sea of options? Visa's banking on its brand-name and ability to spread the service far and wide. If V.me has piqued your interest, leap past the break to catch the full list of supported banks and retailers. [Image credit: Philip Taylor, Flickr]
Bank of America gets into card swiping with Mobile Pay on Demand, because 29 can play at that game
To call the mobile-based card processing business crowded would be a slight understatement -- launching a reader is nearly an instinctual reaction for commerce outlets that see Square running away with the market. What's to stop a bank from joining the fray? Bank of America doesn't see anything wrong, as it's starting up a me-too service through Mobile Pay on Demand. The headphone jack reader with Android and iOS support will seem very familiar to anyone who's been paying attention; the company does have some tantalizing lures for entrepreneurs, however, such as an ever-so-slightly lower 2.7 percent fee per transaction as well as a year-long deals marketing service subscription for any 2012 sign-ups. US shops that haven't already jumped on the bandwagon with Square (or Groupon, or Intuit, or Pay Anywhere, or PayPal or VeriFone) can pre-order a reader today and start taking payments on December 3rd.
Starbucks begins offering Square Wallet purchases from today
While you probably won't be able to get Jack Dorsey to buy you a grande spearmint green tea the next time you go for coffee (we should know, we've tried), you can at least use his payment service. Yes, today's the day that Starbucks begins accepting Square Wallet purchases at 7,000 of its stores -- just scan a QR code or NFC-tap your smartphone to make a payment. In 2013, you'll also be given the ability to tip your barista, presumably assuming you can go through the awkwardness of pre-selecting how much you think their service is worth in front of them.
Rogers and CIBC kick off Canadian NFC-based mobile payments with mini event (update: full details)
Rogers and its banking partner CIBC have been making much ado over bringing NFC mobile payments to Canada since the spring, but the companies have been mostly silent on actual availability and let a rumored October 15th launch date pass by without fanfare. The two partners are at last ready to swing into action, at least symbolically -- a photo-op at a Tim Hortons in Toronto on Friday will officially represent the first instance of their payment system being used in the wild. What we've seen officially and otherwise hasn't changed, which means that event star and triathlete Simon Whitfield will be using one of two NFC-equipped BlackBerry phones with a special SIM card while he buys a meal that we imagine involves coffee and maple-glazed donuts. Rogers hasn't said how soon the less sporty among us will be making payments, although the limited choices of phones (two) and carriers (one) will only give a handful of Canucks a chance to join in. Update: Just as Whitfield's coffee is cooling off, Rogers has given out full details: the CIBC mobile payment option will roll out later in the month to at least 2,300 Tim Hortons restaurants across Canada, with 3,000 more joining in by December. It's called Suretap, as the earlier leak confirmed, and there's no sudden support for Android, Windows Phone or other platforms until 2013. A total of 17 merchants using MasterCard PayPass and Visa PayWave will be eligible to start.
Google Wallet update purportedly leaks plans for a real-world card, transfers and transit passes
Google Wallet hasn't had much uptake in the real world. When most of its use has revolved around one carrier, few payment points and even fewer phones, most of us have had to sit on the sidelines. If an Android Police source really did come across a leaked future build of Google Wallet as he claims, though, we may know how Google surmounts that problem: going old school with a real-world card. Screenshots in the app supposedly show a mail-in option for plastic that could completely replace credit and debit cards without turning to NFC. Any charges after a typical swipe of the magnetic strip would simply go to whatever payment source is set as Wallet's default, letting minimalists slim down their actual wallets while sharing in the same discounts as their phone-wielding counterparts. Digital-only purists would still get something out of the deal, as the update could also bring person-to-person money transfers and support for mass transit cards. How soon the as yet unconfirmed app would appear is still a mystery, but it dovetails with Google teasing a Wallet revamp that's rumored to take mobile use beyond its Android-only roots; we just didn't anticipate that the company might bypass our phones altogether.
Square launches in Canada, streamlines payments on the world stage
For all of Square's fast growth, it's been exclusively the domain of US shopkeeps; others had to scrounge for an alternative, if there was one at all. The payment pioneer clearly isn't content to isolate itself or anyone else, as it's making its international debut with support for Canada. Locals can immediately request the free Mobile Card Reader and swipe credit cards with an Android or iOS device at the same flat, 2.75 percent rate that more experimental American stores know very well. Complete equality isn't available to Canucks just yet, as Square Wallet won't be available until 2013, but the access remains a step forward for Canadian merchants that don't want to be tied down to a terminal any more than their southern neighbors.
Samsung Galaxy S III is the first MetroPCS handset to support Google Wallet
While the US wireless industry seems far away from finding a universal mobile payment system, T-Mobile's new BFF MetroPCS appears to have made its choice. Taking to its official Facebook page, the carrier announced on Monday that the Samsung Galaxy S III is its first handset to support Google Wallet. In choosing Google's mobile payment platform, MetroPCS joins two of its biggest competitors, Sprint and US Cellular. It should be noted that T-Mobile is deeply committed to Google's wireless payment competitor Isis, which recently became ready for public consumption. Once the two carriers exchange nuptials next year, it's possible that we could be looking at the wireless industry's first mobile payment Brady Bunch. However, looking back at T-Mobile's previous attempts at mobile matrimony, we won't be holding our breath waiting for this union to become official.
Google Wallet update "coming soon," to bring support for more handsets?
The folks over at Business Insider spotted a change on the Google Wallet website today indicating that a new version of the payment system -- separate from the recently released web version -- is "coming soon." Folks itching to get in on the fresh NFC payment action can ask for an invite right now, but alas, details about the forthcoming update are scarce. We do know that upon submitting a request for the new Wallet, users are asked if they use an Android, iOS, or "other" mobile device. So, might we be in for more widespread Wallet adoption with this next iteration? Only one way to find out, so head on down to the source, sign up, and see for yourself.
Isis' NFC payments go live in Austin and Salt Lake City: 3 carriers, 9 phones, 1 long way to go (video)
To say that the launch of Isis has felt drawn out would be a mild understatement. The alliance first signaled its intentions two years ago, detailed its first markets one year ago and faced a last-minute delay. All the ducks are finally in a row, however, and residents of both Austin as well as Salt Lake City can tap to pay (or score discounts) at the "hundreds" of locations that accept NFC-based purchases through American Express, Capital One, Chase and Isis' own cash card. Launch day brings app- and SIM-enabled access for nine devices spread rather unevenly across AT&T, T-Mobile and Verizon: only the Droid Incredible 4G LTE is confirmed working for Verizon subscribers, while the rest are divided more equally between multiple Samsung Galaxies and HTC devices like the Amaze 4G and One X. Over 20 phones should be Isis-aware before the end of the year. It's a potentially strong start to one of the few truly cross-network mobile payment systems in the US, but we see a long road ahead before Isis gives Google Wallet some jitters -- there's legions of banks, cities and stores needed before Isis is widespread, and we're not counting on that ever-elusive universal hardware support.
