mobile payments
Latest
Engadget Primed: What is NFC, and why do we care?
Primed goes in-depth on the technobabble you hear on Engadget every day -- we dig deep into each topic's history and how it benefits our lives. Looking to suggest a piece of technology for us to break down? Drop us a line at primed *at* engadget *dawt* com. The introduction of Google Wallet felt a little too good to be true, didn't it? It's magical, like the tech equivalent of pulling a rabbit out of a hat. In reality, the tech behind mobile payments has been around since 2003 on a much smaller scale using near-field communications, more commonly known as NFC. The idea behind Wallet (amongst other services, like ISIS) is contactless pay -- using your phone as a credit card -- and is just one of the many ways NFC can be useful in our everyday lives. In fact, we're only scraping the surface of what's theoretically possible. Google is definitely not the first company to dabble in NFC, but it appears to be poised and ready to push the tech's adoption forward at a rapid pace with the advent of Wallet and Offers. Until now the coals have been hot; but if a fire's going to start, someone monolithic has to throw a few newspapers in as kindling -- and Google volunteered. But what good is NFC if it's just an acronym that causes our eyes to glaze over? Is El Goog the only instigator? After the break we'll focus on what NFC is capable of, and why we want it on our phones as soon as yesterday.
Paypal v. Google: a tawdry tale of trade secret misappropriation
Google and its poached Paypal employees got sued for trade secret misappropriation yesterday, but we didn't know the dirty details until now. A peek at PayPal's complaint reveals there's a bit more to the story. Apparently, Paypal and Google were in talks last year to use PayPal for payments in the Android Market. Osama Bedier was in charge of those negotiations for PayPal in October of 2010, when the deal was supposed to close, but was allegedly interviewing for a mobile payment position at Google at the same time (holy conflict of interest, Batman!). The complaint claims that Bedier initially rebuffed El Goog's advances, told PayPal of the job offer and professed that he would stay, but jumped ship a month later (bringing some PayPal coworkers with him) after being recruited by Stephanie Tilenius and the almighty dollar. Once it hired Osama, Google reportedly put the brakes on the PayPal deal and created Google Wallet. Then Google, Bedier, and Tilenius got slapped with a lawsuit. A brief rundown of the legal claims awaits you after the break.
Google Wallet mobile payment service, Google Offers announced
It may not be as big a surprise as Google hoped it would be at this point, but the company has now officially announced its NFC-based Google Wallet mobile payment service, complete with backing from a number of retail and financial partners including Subway, Macy's, Walgreens, Toys 'R Us, First Data, Citibank and MasterCard -- plus Sprint on the carrier side. In the case of MasterCard, that partnership means Google Wallet will be fully compatible with the PayPass contactless payment system that's already widely in place today. Trials are beginning immediately in New York and San Francisco, with a full release planned for this summer. Initially, the Sprint Nexus S 4G will be the only compatible phone, but support for more phones is promised "over time," and Google even suggested that phones without built-in NFC could simply use an NFC sticker (the Google Wallet app itself will work on non-NFC phones as well). You'll also have to use either a Citi MasterCard or Google Prepaid Card with the service, although the latter can obviously be funded from any other card. Also announced today is Google Offers, which will deliver an "offer of the day" to your inbox, and let you seek out other offers from retailers. Of course, it also ties into Google Wallet, and you'll be able to both redeem offers and receive loyalty rewards from retailers with just a tap of your NFC-enabled phone. As far as Google is concerned, however, mobile payments and special offers are just the beginning for Google Wallet. It eventually sees everything from boarding passes to tickets to IDs (and even keys) being stored on your phone. Not surprisingly, all of this is US-only for the time being, but Google is apparently working on international expansion. Head on past the break for a video and the complete press release. %Gallery-124537%%Gallery-124538%
Google and Sprint team up to take your digital dollars with new NFC payment system? (updated)
There's been rumors of a Google-fied mobile payment system for some time, and now it looks like the Mountain View crew is teaming up with Sprint to finally make it happen. Last month, we heard that the Now Network would bring NFC payments to its customers this year, and Bloomberg reports that the partnership and payment system will make its debut on May 26th. Apparently, New York, San Francisco, Los Angeles, Chicago, and Washington D.C. are the first cities getting the service, which is a much broader initial footprint than its Isis mobile payment competition. The anonymous sources also say that Verifone and Vivotech are providing the hardware and software that will let you replace your credit card with a Nexus S -- because you always wanted to replace your credit card with your Nexus S. Update: According to All things D, the payment system will be put through its paces by none other than El Goog's Executive Chairman Eric Schmidt at the D9: All Things Digital conference next week -- where we'll be on hand to peep the contactless payment presentation in person.
NTT DoCoMo announces 24 new mobile wonders (yes, really) to flood its network
So, Japan... want a new mobile device? How about 24? This grandiose announcement comes straight from NTT DoCoMo, which commonly lays its cards on the table for the delight of consumers. Among the selection you'll find eight new Gingerbread phones, six incredibly high-res shooters (ranging between 12.2 and 16.3 megapixels), eight waterproof handsets, and one embedded with Swarovski crystals. We're particularly thrilled to see the mighty Galaxy S II, 3D-capturing Aquos SH-12C, 700-nit Optimus Bright (contrastingly-named but nearly identical to the Optimus Black), ultra-slim MEDIAS WP N-06C, and mobile payment-enabled Xperia Acro. Oh, and don't forget about the LOOX F-07C -- a multi-talented handset that's running Symbian and Windows 7 Home Premium -- while two LTE-enabled WiFi routers are sneaking into DoCoMo's party, too. That's a lot to absorb, so check out the source for individual release timeframes, which begin now and continue through August -- or just check out the PR after the break.
Isis mobile payment system to work with Visa and MasterCard, shelving plans for its own network
When AT&T, T-Mobile and Verizon came together to create the Isis mobile payment system, they touted a standalone service, powered by Discover's payment network, that would revolutionize the way we make small purchases on the move. Well, the revolution is still on schedule, apparently, but the big trio is now being said to have made a concession in reaching out to the incumbent leaders in this field, Visa and MasterCard. The Wall Street Journal cites multiple sources in reporting that Isis has turned into a less ambitious "mobile wallet" project that would seek to let you use your Visa or MasterCard account via your NFC-capable smartphone. As far as the consumer is concerned, it's still the same swipe-to-buy proposition, but the move was apparently necessary for Isis "to avoid falling further behind" in the race to corner this developing market. We'd say it's encouraging to see these guys showing a bit of swiftness -- it's about time the rest of the world caught up to Japan.
Square to add encryption to mobile card reader, skimmers put on notice
It's only been a couple days since we first heard about Visa's involvement with Square, but the credit card giant is already making its mark on the mobile payment startup. At the Visa Global Security Summit on Wednesday, Square Security Lead Sam Quigley revealed that the company will distribute an encrypted card reader this summer, which will work exclusively with its mobile payment app. The current reader theoretically scans credit card data to any app, but the encrypted version will only work with Square, which should alleviate VeriFone's concern that the company was essentially distributing "card skimmers" to anyone with a social security number. Luckily, the new encrypted reader will remain free, giving Square a colossal advantage over VeriFone's Payware Mobile product, which carries a $49 activation fee, in addition to standard merchant fees. Not to mention, it isn't available in white.
iZettle's chip-reading Square competitor will take your money, no swipes required (video)
Everyone seems to be getting on board with Square's iPhone credit card reader -- Apple started selling the device in its stores last week, and even Visa has taken a financial interest in the company. However, due to the popularity of fraud-fighting chip-enabled smart cards on the other side of the pond, Square's offering doesn't quite fit the bill. iZettle has a similar solution for Europe that includes the ever-so-necessary smart card reader, which the company is launching in Sweden this June. Not only does it enable you to accept credit card payments from friends or customers, the app adds a social twist. Merchants can email a photograph and receipt to buyers, who can then share their latest spoils on Facebook. Of course, if this starts to catch on, it could make explaining that "awesome deal" you scored on a new laptop that much more difficult when it pops up on your significant other's news feed. [Thanks, David]
Square gets financial backing from Visa, asks to see some ID
Everything's coming up Jack Dorsey these days. Last week Apple started stocking Square's iPhone credit card readers in its 235 US retail locations, and now, according to Reuters, Visa has put its plastic where its mouth is. The credit card giant has invested in the personal payments startup, scoring itself a spot on Square's advisory board in the process. No word on how much Visa is actually dropping on the company, but one thing stands to reason: it probably didn't make the deposit via Verifone. If you would like to invest in a Square reader, it'll cost you a lot less -- the company is still offering smartphone plug-ins for free on its site.
Samsung Galaxy S II on pre-order in South Korea, introduces Olleh Touch for NFC payments
When Samsung teased us with those clever Galaxy S II commercials, we could feel the growing anticipation for its early UK arrival. Coincidentally, today marks an end to Britain's exclusivity, with South Korea's KT now offering the dual-core stunner for pre-order. We've learned this Korean Galaxy S II includes NFC, coinciding with the carrier's roll-out of Olleh Touch, a payment system being implemented at local grocer Lotte Mart. Sure, NFC inclusion increases the phone's thickness to 8.9mm, but if parlor tricks are your thing, we'd imagine it'll still easily pass under doorways. [Thanks, Aditya]
Apple Stores stocking Square credit card readers
Jack Dorsey's über-popular credit card readers got a big thumbs-up from Cupertino this week. Square's devices are hitting Apple's 235 US retail locations and Apple.com for $9.95 a pop -- plus the 2.75 percent that the startup takes off the backend each time you use the reader -- or you can always just sign up for a free one over on Square's site. The iPhone / iPad / iPod touch plug-in accepts Visa, MasterCard, Discover, and yes, even American Express. The CEO of VeriFone will no doubt have plenty to say about the matter. Update: It turns out you get a $10 redemption code in the box when you buy a Square reader at an Apple store, so it is still technically free (just not, you know, when you buy it). [Thanks, Michael]
Discover cardholders can send money to anyone with a cell phone, email address
With NFC payment systems just starting to roll out in the US, it'll be awhile yet before you can cut up those credit cards for good. But in the present, at least, you can use your handset to make sure you don't get stuck with a $100 bar tab... again. Discover just announced that it will let its cardholders send money to people in 60 countries -- so long as they have either a cell phone number or email address. As AllThingsD notes, Visa and American Express have hatched similar plans, though Discover is the first of the bunch to partner with PayPal. While people sending money don't need PayPal accounts, people receiving moola do -- or, at least, they must be willing to create one. For senders the service is free and, in fact, they get 0.25 percent cash back for the first $3,000 exchanged. As for Discover, a smaller player than Visa and MasterCard, it hopes some of PayPal's 230 million customers will sign up for a shiny new credit card while they're at it.
Sprint says its NFC-based payment service will launch this year, beat other carriers to the cash register
AT&T, T-Mobile and Verizon may have all lined up to support the so-called Isis mobile payment system for cellphones, but Sprint has decided to go it alone for various reasons, and it's now saying it plans to beat the others to market. As Bloomberg reports, Sprint is already working with payment networks and handset makers on its own NFC-based system, and it says it plans to roll out the service sometime this year, while Isis has previously stated that it only expects to be ready in 2012. While details are otherwise still fairly light, Sprint says that customers will be able to have purchases billed to their regular credit card statements rather than their phone bill, and that it will rely on alternatives to taking a percentage each transaction for itself as Isis plans to do. Of course, while this is Sprint's latest move in the space, it's far from its first -- in fact, it's been running NFC trials as far back as 2007. [Thanks, Carl]
Amazon said to be considering NFC-based mobile payment service
As you may be aware, Amazon does actually already make it easier for you to shop at places other than Amazon.com with its Amazon Payments service, and it now looks like it might even be thinking about expanding things to brick and mortar stores as well. More specifically, Bloomberg is reporting that Amazon is exploring a mobile payment service based on NFC technology, which would let you pay for items and receive things like loyalty points using nothing other than an NFC-equipped cellphone. Not surprisingly, Amazon is also said to be considering some other features that would send folks back to Amazon.com -- Bloomberg gives the example of someone shopping for jeans in a retail store who can't find the right size, and says that they could simply scan the jean's tag to order a pair online. Details are otherwise a bit light, and the service is apparently still not quite a sure thing, although a person familiar with the matter says Amazon will decide whether to go forward with it or not "in the next three to five months."
Android Market gets in-app billing, your virtual nickels are now spoken for
Google said they were coming this week, and here they are -- Android apps can now have their own miniature storefronts for in-app purchases galore. You'll find Tap Tap Revenge, Comics, Gun Bros, Deer Hunter Challenge HD, WSOP3 and Dungeon Defenders: FW Deluxe accept your credit card for microtransactions starting this very instant, and Android developers can start building similar functionality into their own creations right now. Head on over to our source link for instructions on how to shake those extra coins out. Don't want to commit to a full transaction yourself? Hit the break for a quick video refresher of how in-app purchases work. [Thanks to everyone who sent this in]
Windows Phone 7 getting NFC payments in next update?
Microsoft's Windows Phone 7 is still catching up to the competition in terms of apps and basic features, but when it comes to mobile payments it might not be left in the dust -- Bloomberg has two anonymous sources who say that Microsoft will outfit the next version of Windows Phone 7 with software support for near-field communications, and bake NFC tech into WP7 smartphones as early as this year. As we heard earlier this week, Google's reportedly working on a similar plan, complete with partnerships in the credit card space, RIM may or may not be arguing with carriers over its Bank of America trial, and the general consensus around the water cooler is that Apple won't be pursuing contactless payments this year. Yes, it's an exciting time to work in industries that rely solely on money changing hands.
Gemalto bringing NFC payments to phones of any intelligence with MasterCard PayPass SIM
We're seeing NFC chips showing up and tickling the innards of more and more mobile devices, but at this rate it's going to be ages before we see some proper market penetration. Gemalto may have just jump-started that process with a new NFC on a SIM card design that's certified by MasterCard PayPass. It's similar to the company's Zuckerberg on a SIM project we heard about last month, but this time it's wirelessly paying for a drink and not wirelessly telling your friends how much you just had to drink. This means near-field wireless payments could be brought to nearly every GSM phone on the planet, also allowing for secure on-device transactions, like adding more minutes to a pre-paid phone. This is said to be the beginning of a "mass commercial roll out," giving us reason to hope that soon forgetting our wallets at home will be a feature and not a bug.
American Express challenges PayPal with 'Serve' digital payment platform
American Express may have been lagging a bit behind the likes of Visa and Mastercard with digital payments over the years, but it's making a pretty big play in the field today. It's just announced its new "Serve" digital payment platform, which is more or less a straight-on competitor to PayPal. That means you'll be able to transfer funds to your Serve account from your bank account or credit card, send money to others using either the website or mobile app (currently available for iOS and Android), and even link your account to a reloadable Serve card, which you can use at any retailer that accepts American Express credit cards. Nothing fancy like NFC payments just yet, but American Express is promising to "quickly evolve" the platform by adding new features and functionality, and it's hoping to kick start things by waiving most of the consumer fees for the first six months. Head on past the break for the complete press release, and hit up the source link below if you'd like to sign up.
WSJ: Google teams with MasterCard and Citigroup for NFC payments, also files patent app
Ever since the Nexus S and its nifty little NFC chip hit the market, there's been speculation that El Goog was planning a foray into the mobile payment arena currently occupied by the likes of Charge Anywhere. Now, it looks like that plan may be in high gear, as the Wall Street Journal reports that Google's secretly partnered with MasterCard and Citigroup to test out just such a system. According to the publication, the early demo pairs "one current model and many coming models of Android phones" with existing Citigroup-sponsored credit and debit cards, and is using the phones' NFC chips with those VeriFone readers we recently heard about. What's more, a newly-published patent application from the crew in Mountain View may hint at the software behind such things. The application describes a service that sets up Google as a third-party broker who receives the shopping cart info of customers placing orders via a device (including those of the mobile variety), allows them to select shipping and other options, and provides the total order cost. It then collects payment, coordinates shipment, and forwards order information to the seller to complete the transaction. So companies can have Google handle all their payment-taking needs in return for getting a sneak peek at what folks are buying -- something that the WSJ's sources say might be a component of the setup Google's testing right now -- as opposed to other third-party services, like Paypal, that only obtain and exchange payment info with merchants. Looks like Alma Whitten (Google's Director of Privacy) has her work cut out assuaging the concerns such a system will inevitably create in an increasingly privacy-minded populace. Sean Hollister contributed to this report.
Charge Anywhere update turns Nexus S into full-on mobile payment terminal
Processing mobile payments via an external dongle? That's so early 2011. Charge Anywhere has a less troublesome idea, and if you're the lucky owner of a Google Nexus S, you could soon be accepting cold, hard virtual cash via NFC. For those already familiar with the space, you'll know that this very company already has applications out for the iPhone, BlackBerry and Android devices, but all of those obviously require a credit card swiping mechanism to be connected. According to CNET, the latest version will include support for the NFC module embedded within the Nexus S, enabling it to be a full-on mobile payment terminal with no additional hardware required. Both MasterCard PayPass and Visa Blink payments could be ingested, but don't go searching for the update in the Android Market; the company's done with the new build, but it won't be let loose to the public until it's ran past larger customers first. We don't get the impression that the NFC-compatible version will run any more than the $9.99 per month, but it's obviously a wait-and-see affair for now.
