Mobile Payment Magazine

BankAtlantic Launches New Mobile Banking Application

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BankAtlantic, based in Florida, has launched a new free* Mobile Banking Application for the iPhone, iPad and iPod Touch.

The Mobile Banking Application provides:

  • Checking account balances.
  • Recent transactions and transaction history.
  • Transfer of funds between accounts.
  • Use of the iPhones Geo Tracking functionality to locate the BankAtlantic branch or ATM location nearest you.

” The delivery of these new capabilities reflects our ongoing commitment to create value for our customers through the strategic, innovative use of technology,” commented Lloyd DeVaux, Chief Operating Officer of BankAtlantic. “Customers want and demand convenient banking solutions that help them manage finances while on-the-go, and, BankAtlantic’s Mobile Banking Application for the iPhone does exactly that whether they are in the office, on the beach, or in a taxi. Anytime. Anywhere.”

*BankAtlantic’s new Mobile Banking Application for the iPhone, iPad and iPod Touch is provided to its customers free of charge. However, network charges may vary depending on provider. If you aren’t sure what fees may apply, please consult with your network provider before enrolling in the service. BankAtlantic’s new Text Message Banking service is provided to its customers free of charge. However, standard carrier fees for text messaging, including message and data rates, from your communications service provider will apply.  If you aren’t sure what fees apply when you send and receive text messages, please consult with your mobile phone carrier and/or communications service provider before enrolling in the service.

Deposits are subject to verification and may not be available for immediate withdrawal.  Transactions may not appear in the order in which they will be posted at the end of each business day. Terms and conditions apply.

Source: Globe Newswire

Tabbedout Raises Additional Funding, Partners with MICROS

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Another mobile payment startup—Tabbedout—is becoming a more serious contender in the mobile payments space, and has just raised another $3.7 million, on top of $2.8 million raised previously, according to TechCrunch. The company allows consumers to pay their tab via smartphone at a network of bars and restaurants in twenty states.

In addition, the company recently announced that Tabbedout is now fully integrated with the POS technology of industry leader MICROS Systems, Inc. (NASDAQ: MCRS). This offering means a larger segment of the hospitality industry across the country can now promote a mobile payment option.

“Tabbedout’s approach marks a radical shift in the mobile payment landscape,” said Michael L. Russo, Chief Technology Officer, MICROS. “We partnered with Tabbedout as the integrated solution to provide our merchants with the peace of mind of security encryption on the back end, coupled with the marketing capabilities and social media integration on the front end.”

Available for free on both iPhone and Android smartphones, the company says its application was built by security experts with ease of use and marketing capabilities in mind. Unlike other mobile payment solutions, Tabbedout allows users to store credit card information directly on their phone, under pass-phrase protection, instead of on host servers. Consumers can open, view and pay their tab at their own pace, and share their social experiences with friends via Facebook, Twitter and Foursquare, all within the application.

Currently, Tabbedout’s payment solution has enabled thousands of mobile payments at a network of restaurants and bars across 20 states in 90 cities. The partnership with MICROS will greatly expand the number of merchants offering the Tabbedout service to patrons.

“Partnering with MICROS enables us to offer unparalleled integration and expand our network of venues, which means more consumers will be able to experience the security and ease of paying with their phone. Mobile payments are a hot topic, but research shows that mobile payment is a reality at only .1% of the overall U.S. retail sales landscape. We are excited to accelerate our growth while helping merchants generate more profit and offering consumers the unique capability to maximize their time with friends rather than anxiously awaiting their check,” said Rick Orr, CEO, of Tabbedout.

How it Works
Once Tabbedout has been downloaded from the iPhone App Store or Android Market, consumers can find locations and open, view and pay tabs. Credit and debit card information is encrypted securely on the user’s phone, not on Tabbedout’s servers. A random secret code is displayed on the screen each time a consumer opens a tab – that’s the only information the consumer needs to provide the server or bartender. Customers can leverage Tabbedout’s integration with top social networks to check-in and let their friends know where they are or to check-out and let them know where they are going next. Receipts can be emailed automatically and customers can even call a local cab using Cabbedout, all from within the app.

The company says merchants experience increased sales, payment security and operations efficiency with the Tabbedout solution embedded in their MICROS POS system. In addition, customers are able to pay on their own time, so restaurants and bars can serve more people, especially during peak hours, and merchants reduce fraud exposure for their patrons by removing the exchange of a physical credit card. Payment information is validated upfront and the POS clearly notifies the staff when a tab is paid.

Source: TechCrunch, Tabbedout

Mitek Systems Reports Q2 2011 Earnings

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Mitek Systems, Inc. (OTC: MITK.OB), a leader in mobile-imaging applications using smartphone cameras for check deposits, bill payments and ACH enrollments, today announced financial results for the second quarter of its fiscal 2011, which ended March 31, 2011.

Net sales for the second quarter of fiscal 2011 were $2,868,000, compared with $1,517,000 in the same quarter last year, an increase of $1,351,000 or 89 percent. Gross margin for the second quarter of fiscal 2011 was 91 percent, compared with 88 percent for the same quarter last year.

Net income for the second quarter of fiscal 2011 was $570,000, or $0.02 per diluted share, compared with net income of $7,000 or $0.00 per diluted share, for the same fiscal quarter last year.

The Company ended the second fiscal quarter of 2011 with cash and cash equivalents of $2,304,000, compared with $1,305,000 in the year-ago period. The Company had working capital of approximately $2,997,000 and stockholders’ equity of $3,244,000 at the end of the second quarter of fiscal 2011, compared with working capital of approximately $1,400,000 and stockholders’ equity of $1,001,000 at the end of the second quarter of fiscal 2010.

President and CEO James B. DeBello said the Company is experiencing increasing momentum in sales of its flagship Mobile Deposit® solution, with five of the nation’s top 10 retail banks now signed on to deploy the application. These include new customers Bank of America and Capital One Financial. In April 2011, Mitek announced that an additional 26 banks have signed agreements to deploy Mobile Deposit, bringing the total number of financial institutions to 40 – including many of the top U.S. retail banks and payments companies.

“Mitek is very pleased to add Bank of America and Capital One Financial as Mobile Deposit customers through our channel partner NCR,” DeBello said. “We continue to see an unprecedented level of interest in Mobile Deposit in our core banking channel and across the entire payments industry. After success last year in partnering with the financial industry’s top solutions providers, 2011 is the year deployment of Mobile Deposit is hitting its stride.”

In addition to its second-quarter operating results, Mitek significantly strengthened its balance sheet following the close of the quarter by completing a private placement of its common stock to select institutional investors in a transaction managed by William Blair & Company. Gross proceeds from the transaction were $15,000,000. As a result of the transaction, Mitek plans to file for the listing of its shares on the NASDAQ Capital Market.

“We are proud today to stand with the strongest financial position in the Company’s recent history following our share sale,” said DeBello. “We believe it is testament to the potential of Mitek and our unique position as a pure play mobile-payments company.”

DeBello said Mitek has established itself as a leader in mobile-payments innovation with its patented image-analysis technology and growing portfolio of products for the financial services industry that enable secure, accurate and convenient mobile transactions via smartphone cameras.

The portfolio also includes Mobile Photo Bill Pay, which allows a user to pay a bill without writing a check or licking a stamp simply by snapping a photograph of the paper document, and Mobile ACH Enrollment, an application that enables consumers to enroll their checking accounts as funding sources for mobile payments by taking photos of blank checks with their smartphones.

DeBello will discuss the second-quarter financial results in a conference call for shareholders, financial analysts and other interested parties at 9 a.m. EDT / 6 a.m. PDT today.

Source: PRNewswire

Text2Pay

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Text2Pay allows for online payments using the mobile phone. With strong security and high conversion rates being the most important factors, Text2Pay’s goal is to make the customer’s payments experience more enjoyable and easy.

Text2Pay is backed by mBill, a leading mobile billing company with over 10 years experience. mBill provides comprehensive mobile marketing and billing solutions to millions of customers globally.

Text2Pay’s team consists of industry-skilled mobile professionals who hold a wealth of mobile-based and digital marketing knowledge.

Text2Pay ensures that safe and fair industry regulations are in place for the protection of customers. The company works with industry regulators and associations to ensure their processes and systems adhere to global guidelines.

The company has offices in Brisbane, Sydney and New York.

Mobile Payment Strategies Opportunities & Markets 2011-2015

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This report by Juniper Research provides the definitive big picture view of the entire mobile payment market, delivering detailed vendor analysis and forecasts for three segments of this rapidly developing landscape; mobile payments for digital and physical goods, NFC retail marketing and mobile payments; and mobile money transfer & remittances (domestic and international).

This invaluable market sizing tool delivers an insightful synopsis of the opportunity for each of the mobile payment segments projecting gross mobile payment transaction values for eight key regions up until 2015. For more in-depth sector focused forecasts, please see each of three related reports within the mobile commerce stream.

This fully updated third edition defines the current mobile payments market structure, exploring a number of vendor applications and services, central to emerging trends within the value chain over the past 12 months.

More, via Mobile Payment Strategies Opportunities & Markets 2011-2015.

DigiMo Introduces Mobile Payment Solution Requiring No Hardware or Software Modifications from Merchants

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DigiMo, a mobile payment system provider, announced today the completion of its new platform for mobile payments, requiring no hardware or software modification at either the Point-Of-Sale (POS) or mobile device itself, whether cell phone, tablet computer, or smart phone.

According to the company, the system is  integrates with customer loyalty clubs, allowing for mobile payments, coupons, ticketing, and much more.

To use DigiMo, consumers start by registering for the service online, supply their preferred billing method and phone number, receive a PIN, and pay quickly and easily at any participating retailer.

The service is designed for online companies, credit card companies and mobile operators who want to launch a wide-scale mobile payment service at multiple retailers without requiring POS integration at each one.

“Over the past decade, numerous attempts have been made to launch a wide-scale mobile payments service. Up to now, no agreement existed regarding the technological standards and business model, due to heavy investments associated with the implementation,” said Yossi Yarkoni,  DigiMo’s CEO. “We’ve avoided this by developing an independent system that works at virtually any point-of-sale, replacing cash and credit cards with mobile handsets.”

With DigiMo, retailers, telecom companies, and financial service providers acquire a mobile payment solution that requires virtually no investment. With only one intermediary in the payment process, retailers can enhance the customer experience. The company says their solution integrate customer loyalty programs, coupons and interactive discounts, and Telcos, credit card companies, and financial institutions can white label DigiMo as a value-added service.

The company notes that its technology addresses all aspects of payment security, including end-user privacy, non-repudiation and administrative privileges. The solution can be operated from almost every handset with 2G and up or as an application for smart phones.

Source: PR Distribution Online

PaymentOne Files Patent Infringement Suit Against Zong Inc.

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PaymentOne Corporation a mobile payments and carrier billing company,  has filed a patent infringement lawsuit against Zong Inc., in the Northern District of California. In its complaint, PaymentOne asserts that Zong’s products and services infringe on multiple PaymentOne patents relating to phone number based validation, authentication, fraud control, and payments.

The complaint seeks unspecified damages and a court-ordered injunction against future infringement by Zong.

“For more than 10 years, PaymentOne has been at the forefront of developing and deploying technologies for carrier-based billing, mobile payments and advanced fraud protection,” said Joe Lynam, President and CEO of PaymentOne. “Since 2000, PaymentOne has invested significant time and money developing these proprietary technologies, and our systems have been deployed at numerous locations and merchants for much of this time. PaymentOne respects intellectual property rights and therefore has no choice but to aggressively pursue Zong and other companies that are infringing PaymentOne’s intellectual property.”

The asserted PaymentOne patents include United States Patent No. 7,080,049, entitled “Method And System For Processing A Transaction;” United States Patent No. 7,848,500, entitled “Method And Apparatus To Validate A Subscriber Line;” and United States Patent No. 7,848,504, entitled “Method And Apparatus To Validate A Subscriber Line.”

PaymentOne is represented in this action by the law firm Morgan, Lewis & Bockius, LLP.

Source: MarketWire

Retailers Increasing Mobile and Social Sales and Marketing

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In an effort to better serve multi-touchpoint, always-on, and empowered consumers, a growing number of retailers are experimenting with mobile and social initiatives — some that are paying immediate dividends and some that are still in the speculative phase.

According to Forrester Research, 91 percent of retailers currently have a mobile strategy in place or in development (up from 74 percent a year ago). Additionally, 72 percent of retailers say they will increase their spending on social networks this year over last year.

The report, entitled “The State Of Retailing Online 2011: Marketing, Social, and Mobile,” surveyed 68 companies, and was conducted  by Forrester Research Inc. for Shop.org.

Mobile

Retailers report that 21 percent of all mobile traffic is coming from tablets, amazing considering the iPad was launched barely a year ago.

Still, the overall amount of mobile traffic and revenue has not increased dramatically, suggesting that investment levels in site optimization may still be inadequate. For example, 48 percent of retailers report having a mobile-optimized website; 35 percent have deployed an iPhone app; and 15 percent offer an Android app and an iPad app, respectively. Challenges for retailers include differentiating the consumer experience on a tablet versus a smartphone and figuring out features and functionality in dueling app/mobile Web ecosystems.

“After spending the last few years learning how to capitalize on social media and new mobile technologies, one of retailers’ main focuses right now seems to be leveraging the tremendous popularity of tablet devices, such as the iPad,” said Shop.org Head of Research Fiona Swerdlow. “As sales channels continue to blur in retail, companies are creating mobile apps that make their brands seem current, entertaining, or fun, while at the same time creating a unique opportunity to connect with more shoppers than ever before.”

Social

Compared with past years, social networks surfaced higher as an investment area among retailers. Social networks ranked fourth on the list of successful customer acquisition sources, up significantly from last year. Yet the ROI associated with social is muddy: 62 percent of retailers said the returns on social marketing strategies are unclear, and nearly the same percentage said the primary ROI from social marketing is listening to — and gaining a better understanding of — customers.

“The data indicates that significant investments in social and mobile tactics will be in place this year,” said Sucharita Mulpuru, vice president, principal analyst, Forrester Research. “Retail executives should have modest expectations for the benefits of social commerce. With regard to mobile, retailers should be working to increasingly integrate features and functionality into the physical store experience. While consumers may not be extensively exploring product information yet, basic store information, transparent pricing, and easy checkout capabilities are likely to be the most pressing opportunities for most sites in the near term.”

“The State Of Retailing Online 2011: Marketing, Social, And Mobile,” is available to Shop.org members and can also be purchased directly at www.shop.org/soro. Forrester clients will be able to access the report as part of their subscription service one month from publication.

Source: Forrester Research

Mobile Money Network Announces UK Service, “Simple Tap”

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The Mobile Money Network (MMN) has announced what it calls “a common sense approach to buying products and services via a mobile phone.”  Dubbed “Simply Tap” the company says, the system will allow consumers with any mobile phone, on any mobile network and with any bank to buy anything from the retailers signed up to the service, wherever they are. [Read more…]

Mobile Payments Enter A Disruptive Phase 2011

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While Near Field Communication has created a lot of buzz in the mobile payment industry, it is clear that there remain significant hurdles before the technology is standard in U.S. mobile commerce.

Forrester Research recently published a report: “Mobile Payments Enter a Disruptive Phase,” excerpted below:

The pace of innovation in mobile payments is accelerating. 2011 is finally the year when Near Field Communication (NFC) will reach the hands of millions of consumers, while initiatives in the digital micropayment arena are accelerating.

While we believe that mass-market adoption of mobile payments is still years away, new entrants — be they mobile operators, alternative payment providers, or online players — have the potential to disrupt existing payment systems. Consumer product strategy professionals should anticipate different disruptive scenarios and determine the likelihood of them happening.

To define the correct strategy, be it defensive or offensive, they need to measure the convenience of their new products and services. And, at a tactical level, they shouldn’t underestimate the need to educate consumers about new payment methods.

Table of Contents

  • Making Sense Of Mobile Payments
  • Mobile Payments Are Disrupting The Existing Payments Landscape
  • Mobile Payments: What Product Strategists Should Anticipate

Recommendations

  • Anticipate Different Disruptive Scenarios And Think About Convenience
  • Supplemental Material
  • Related Research Documents

More information: Forrester Research.