mobile payments
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Carriers at odds with RIM over NFC payment data
We've already heard a fair bit about RIM's plans for NFC-based mobile payments, but it's starting to look like some of those plans don't quite line up with what the carriers have in mind. As the Wall Street Journal reports, there's a brewing dispute between RIM and a number of carriers including AT&T, T-Mobile and Rogers over just how NFC payment-related data, or "credentials," are stored, and who actually controls that data. For its part, RIM unsurprisingly wants to store the data in a secure area of the phone itself, which would obviously tie folks to their BlackBerry more than ever, while the carriers are pushing to have that data simply stored on the phone's SIM card, which would let customers move from one phone to another more easily. While things apparently haven't gotten that heated just yet, it does certainly seem like there's a bit of a fight in store -- according to the Wall Street Journal, RIM is already reaching out to banks on its own in an effort to strike some deals, while Canadian carriers have apparently been telling RIM in a "gentle" way that "you won't be doing this."
Google said to be preparing NFC checkout trials for San Francisco and New York City
Google does not sell hardware, Eric Schmidt told us as much, but the company has few qualms about buying the stuff up. Bloomberg is reporting, on the authority of a pair of well informed sources, that the Mountain View team is about to buy up "thousands" of VeriFone's NFC payment terminals, with a view to installing them in stores across San Francisco and New York City. Those two technophile cities represent the most receptive audience NFC is likely to get in the US, and Google will be hoping that users there will be able to appreciate the convenience of being able to swipe their Nexus S (or other similarly equipped handset) to complete payments. We already know that Schmidt and co. consider the concept of "mobile money" a priority and there have been rumblings of Google setting up its own payment system, which together make this hookup with VeriFone appear highly credible. Bloomberg expects the trials to commence within the next four months, just in time to make iPhone 5 users green with envy.
VeriFone puts money near mouth, says it'll include NFC in all new POS terminals
Well, here's a bold step forward for NFC -- payment solution provider Verifone says its new batch of point-of-sale terminals will come standard with the touch-to-pay wireless technology. That's the word from Near Field Communications World, who quizzed the company just a few days after CEO Douglas Bergeron called on the payments industry to foot the NFC bill, saying "The retail point of sale represents a point of convergence for smartphone-initiated payments, social networking and electronic couponing, but it won't happen if retailers are expected, on faith, to absorb the costs of making it work." Sounds like a company that's very keen on letting us pay by swiping our phone. Unfortunately, he didn't say when such technology might roll out.
Ohio Girl Scouts accepting mobile payments for cookies, your thin mint craving starts now
Short on cash but wishing you could stock up on Girl Scout cookies? Then you no longer have an excuse -- at least if you're in Northeast Ohio -- as the local Girl Scout group there has teamed up with Intuit to accept credit cards using the company's GoPayment app (and accompanying card reader) for iOS and Android. What's more, while the Ohio group is the first to sign up, Intuit is now also extending the same offer (which includes reduced transaction fees) to Girl Scout organizations across the US -- something tells us it won't have much trouble getting attracting interest.
Square mobile payment system gets simpler pricing, keeps angular shape
If you hate doing math and you run a small business then surely you've looked longingly at mobile credit card systems like Square's longingly. No handling of cash certainly would make life easier, but Square's system of fees and surcharges weren't exactly easy to figure out themselves. Now the company has simplified things, dropping the $.15 per-transaction fee for swiped purchases, charging a simple 2.75 percent on each transaction. If, however, that transaction is being made without swiping the actual card the $.15 transaction fee sadly comes back, but the percentage fee has gone down from 4.0 percent to 3.5. So, a little less of your handiwork will be absorbed by the man. [Thanks, Brent]
Morpho's NFC / WiFi-enabled keyfob brings wireless payments, card management to the everyman (video)
Not interested in picking up an NFC-enabled smartphone? No matter -- Morpho's got you covered. The outfit was demonstrating a newly finished Simlink NFC keyfob here at Mobile World Congress, intended to provide contactless payment capability for those who lack it in their existing mobile. Rather than stopping at just payments, this dongle also supports frequent flier cards, membership accounts and pretty much any other members-only situation that may ever use NFC check-ins and registration. There's even a WiFi module here and an onboard web server, enabling any WiFi-enabled phone to immediately see your most recent transactions as well as what data / cards you have stored on the device. We're told that the onboard battery can last around a week if you don't use it continuously, and a simple micro-USB connector is responsible for charging. The only unfortunate part is the size -- it's hardly inconspicuous, but we're guessing revision two will lose quite a bit of weight. This particular model should go on sale by the end of Q4, with pricing to be determined. Head on past the break for a brief demonstration, you big spender, you. %Gallery-116875%
Apple job posts point to built-in NFC capabilities for iPad / iPhone
Ladies and gentlemen of the, ahem, jury, we intend to show -- through rumors and circumstantial evidence -- that Apple might very well be building Nexus S-like NFC capabilities into next-generation iPhones and iPads. We present for your consideration exhibits A, B, and C: three Apple job posts, seeking two managers of global payment platforms and one test engineer for iPhone hardware. According to the original post, the right engineer possesses a background in both ICT (information and communication technology) and RFID (radio frequency identification), which forms the basis for NFC. Suspiciously, Apple removed the "ID" in "RFID" sometime in the past 24 hours. Still not convinced of Apple's NFC involvement? Consider this: Apple's manager of global payment platforms is tasked with contributing "to the analysis and development of new payment types and processes." Okay, so there's not a smoking gun in sight, but a little innocent conjecture never hurt anybody.
iPhone 5 and iPad 2 will come with NFC built in, suggests well-connected analyst
You'll no doubt be aware of our (well justified) distrust for anything that passes a tech analyst's lips, but this time's a little different. Richard Doherty of Envisioneering Group cites "engineers who are working on hardware" for Apple's latest project in asserting what that project actually is: NFC capabilities are apparently being built into the next generation of iPhone and iPad devices. Contactless payments via NFC have been steadily building up in hype and adoption recently -- at least in the western hemisphere, the stuff is commonplace in Japan -- and Doherty predicts Apple will make its move into the field with some new hardware and an accompanying "revamp" of iTunes. The idea would be to allow the use of iTunes gift card balances and the credit card info Apple already has from you to make swiping payments at compatible retail outlets. Apple is said to be planning enticements, like loyalty credits and points, to get you using its service in the place of the competition, and there are already a couple of software patent applications from the company detailing other potential uses for the technology. All of which could mean absolutely nothing, of course, but this seems like an awful lot of smoke for there not to be a fire under it.
Starbucks lets you pay for that Trenta with the iPhone in your shaking, overcaffeinated hands
Expanding a trial that had already been underway in a few markets, Starbucks is now rolling out its Starbucks Card mobile app nationally with payment capability built-in, meaning you needn't reach into your wallet, pocketbook, or purse just because you're jonesing for that midday caffeine fix. Instead, you can fire up the app -- which supports the iPhone, iPod touch, and a number of BlackBerry models -- and hold up a barcode on the screen to a scanner in the store, at which point monies will be automagically deducted from your Starbucks Card account and transferred back to the mothership in exchange for high-octane brew. The circle of life, as it were. Follow the break for the full press release.
Intuit now offering GoPayment service without fees through February, also throws in a free card reader
Perhaps just to show that it is not hip to be a Square, Intuit has rolled out a serious incentive for businesses to jump on the GoPayment bandwagon. Since we last saw the mobile payment service, the company has decided to offer customers a free card reader (while supplies last) and no monthly service fees in an effort to expand its user base. Primarily aimed at those processing low sales volume, the deal includes $0.15 per-transaction fee. That's half the $0.30 fee for high-volume users, who still get the complimentary reader for signing up, but have to pay $12.95 monthly for the privilege. The offer is exclusively available to new customers, and the gratis reader only works with some phones (far fewer than the number of phones that work with the app itself), but hey, free is free. Let's just hope Intuit's system doesn't suffer from the security problems of its rival.
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]
Angry Birds developers to launch 'Bad Piggy Bank' mobile payment system
After millions of downloads of their popular game Angry Birds and a plan to take over the gaming world, Rovio is looking to get a little more from users; they now want to implement a mobile payment system inside the game itself. In an effort to grab a few more bucks from impulsive buyers/gamers they are launching Bad Piggy Bank, which with just a touch of a button will let customers make in-app game purchases without a credit card -- the price of anything they buy will just be added to their monthly cell phone bill. Rovio is based in Helsinki, Finland and is initially putting the payment system in place on Android with Elisa, the country's biggest telecom provider, but expects to roll the service out worldwide sometime in 2011. While Apple allows users to upgrade 'in-app' from free to paid versions and the buying and unlocking of special features, I do question if they would ever allow something like Bad Piggy Bank to purchase other Rovio games without a link going back to the App Store. However, I can say that if it were in place I would probably have bought every version of Angry Birds by now, since I cannot seem to stop playing it.
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.
