Mobile Payment Magazine

Facebook Plans to Acquire Mature Mobile Startups, Says CTO

by

With its newly replenished cash hoard, Facebook plans to acquire mature mobile start-up companies to work toward its goal of being a platform company, according to Facebook CTO Bret Taylor.

“We’re really focused on acquisitions,” Taylor said at the Inside Social Apps conference at UC San Francisco on Tuesday. “Every investment we make is aligning ourselves with the vision of being a platform company.”

The company raised $1.5 billion last week through an investment organized by Goldman Sachs, and is likely to file for an IPO later this year.

via Wall Street Journal.

iPhone and iPad Will be Equiped with NFC for Mobile Payments, Says Consultant

by

Apple Inc. plans to introduce services that would let customers use its iPhone and iPad computer to make purchases, said Richard Doherty, director of consulting firm Envisioneering Group.

The services are based on “Near-Field Communication,” a technology that can beam and receive information at a distance of up to 4 inches, due to be embedded in the next iteration of the iPhone for AT&T Inc. and the iPad 2, Doherty said. Both products are likely to be introduced this year, he said, citing engineers who are working on hardware for the Apple project.

via Bloomberg.

Square Inc. Signing Up 30,000+ New Accounts Per Month

by

Jessica Guynn of the Los Angeles Times interviewed Square COO Keith Rabois about Square’s latest round of funding,  which according to some sources puts the company valuation at over $240 million. According to Rabois, the company has “been signing up 30,000 to 40,000 new accounts per month and the pace is accelerating.”  Not bad!

Square provides a  new platform to accept debit and credit cards on a mobile devices. The Square product is a small (square) piece of hardware that attaches to mobile devices (e.g., smartphone, laptop). It’s basically a small card reader that allows merchants to swipe a customer’s credit card and complete a mobile transaction from virtually anywhere.

Before the company launched, Square Inc. raised $10 million,  with a valuation of $40 million. The lead investor of the $10 million round was Khosla Ventures.

At first blush the current $240 million valuation may seem rich for an enterprise that launched just over a year ago, but given that one of the company’s co-founders is Jack Dorsey, best known as the creator of Twitter, a blockbuster success is not out of the question.

In the Los Angeles Times blog post, Guynn asks: “How do you increase awareness of Square?”

According to Dorsey, “Historically the way people have found out about Square is that they pay a merchant at the farmers market with it and decide they want to get it themselves or they read about it on Twitter or in media coverage. But we have not engaged in traditional marketing campaigns. We are going to invest in marketing. You will see that go live in January. It’s a big task to ensure that the 180 million people who carry plastic in their wallets know about Square.How has adoption of Square grown since October, when you launched to the public?We have been signing up 30,000 to 50,000 new accounts per month and the pace is accelerating.” (via: Lost Angeles Times)

Mobile Payments Research Report 2011: Battle in a Fragmented Market

by

Research and Markets  has announced the addition of the “Mobile Payments – A Battle of Giants in a Fragmented Market” report to their offering.

This study spotlights the mobile payment market, provides details about the related services and their technological aspects, analyses the usages and the industrial structure with a drawn of the value chain. The report makes an in-depth look in examining several business models – for NFC, SMS, Fixed/mobile wallet & App Stores – their impacts and upcoming opportunities.

Key Questions

  • What are the different mobile payment services and which technologies are being used?
  • Who is using M-payment and how do they use it?
  • How are this emerging market and its value chain structured?
  • What are the existing business models and who is the furthest along with their deployments?
  • What are the market’s key figures and what are the main forces driving development?
  • What does the competition landscape look like?
  • What sustainable opportunities are available to the different kind of players?

Key Topics Covered:

  • 1. Executive Summary
  • 2. Introduction
  • 3. Market structure and key factors
  • 4. Organisation & Industrial Strategy
  • 5. Strategic analysis
  • Tables
  • Figures

Companies Mentioned:

  • Amazon Mobile Payments
  • American Express
  • Apple
  • BarclayCard
  • Billing revolution
  • Boku
  • Carrefour
  • Deutsche Telekom
  • Facebook
  • Gemalto
  • Google
  • McDonald
  • MoBeePay
  • NFC
  • Nokia
  • NTT docomo
  • Obopay
  • Orange
  • PayPal
  • PTC
  • Sprint
  • Starbucks
  • Subway
  • Telecom Italia
  • Telefonica
  • Venmo
  • Verifone
  • Visa
  • Zong

More information: Research and Markets

Payments 2011 Conference – April 3-6, 2011, Austin, Texas

by

Payments 2011 ConferencePayments 2011 is a conference for payments professionals from across industries and around the globe to get vital and actionable information to help address the myriad issues and opportunities in today’s rapidly-changing environment.

  • Presented by payments practitioners, PAYMENTS 2011 delivers unsurpassed value to all attendees:
  • Timely industry research from 14 professional firms results of which you would pay thousands to access were you to purchase them commercially;
  • The latest trends, technologies, and business practices invaluable information that gives you the insights you need to help your organization stay ahead of the competition;
  • Regulatory advice and forecasts – straight from the legal firms and agencies who deal with the issues on a daily basis.

In short, a wealth of information presented all together in one exciting venue that you simply can’t get anywhere else!

PAYMENTS 2011 challenges you to think beyond industry conventions and silos with thought-provoking keynote and industry agenda sessions, and allows you to network with and learn from thousands of attendees who are driving industry innovation.

The PAYMENTS conference provides the ideal environment specifically designed to assist you in identifying collaboration partners and cultivating critical relationships. Gather even more information from and build relationships with exhibiting and sponsoring companies delivering industry-changing products and services.

The PAYMENTS conference agenda offers more than 130 sessions divided into eight tracks plus workshops: Automated Clearing House (ACH) | The Payments Biz | Corporate Payments Solutions | Risk & Compliance | Global Focus | Card Solutions.

Featuring 2 NEW Tracks for 2011: Healthcare Opportunities| Mobile Banking & Payments

Who Should Attend

Payments Executives, Officers, Managers, Consultants, Analysts, and Professionals with responsibilities in:

  • Business Development/Marketing
  • Risk Management/Fraud Detection/Loss Prevention
  • Audit/Compliance/Legal
  • Internet/Electronic/Mobile Banking
  • Healthcare Payment Processing
  • Treasury/Cash Management
  • Card Services
  • Operations/Product Management
  • Check Services & Imaging
  • Retail Banking
  • Payments of all Types

More Information: Payments 2011

Bank of America Expands Mobile Banking Trial

by

B of A plans to expand a mobile payments trial it is conducting in New York to San Francisco and Atlanta this quarter, according to Michael Upton, the emerging channels capabilities executive at the Charlotte, N.C., company.

“We have liked what we learned,” Upton said of the trial in an interview on Monday. “It does … give us some of the market differentiation in terms of consumer adoption, behavior, preferences [and] perceptions by moving to some of the other markets.”

Bank of America also plans to make the system commercially available to customers by the end of the year, Upton said.

via American Banker

Florida Turnpike Enterprise Partners with Epay for Payment Solution

by

epay, a prepaid and payments processor in the U.S., has announced a partnership with Florida’s Turnpike Enterprise (FTE). The company says that now SunPass customers can now reload their accounts using cash at more than 2,000 epay locations statewide. Customers can also check their SunPass account balance. SunPass is Florida’s electronic prepaid toll program, and is accepted on all toll roads and nearly all bridges in the Sunshine State.

“Through our partnership with epay we have nearly tripled the number of SunPass cash replenishment locations from 1,161 to more than 3,100 locations statewide, including more than 450 locations in Miami-Dade,” said FTE Deputy Executive Director Jennifer Olson. “It is important that we provide as many places as we can for our customers to reload their SunPass accounts, especially as we get close to February, when we will implement all-electronic no cash tolling on the Turnpike Extension in Miami-Dade County.”

Reloading an existing SunPass account with epay is easy. Customers just give their SunPass transponder number to the cashier at any participating retailer, along with the amount of money they want to add to the SunPass account plus a $1.50 convenience fee per transaction. Customers then get back a receipt showing the amount added to the SunPass account. Checking SunPass account balances works the same way, except there is no convenience fee.

The new locations offering SunPass cash-reloading services include gas stations, convenience stores, check-cashing stores, wireless dealers, bodegas and more. The locations generally have on their door or window a green and yellow sign with the SunPass logo, clearly advertising to the customer the availability of the service. Customers can go to the SunPass website to find a reload location nearby. It is as simple as entering a ZIP code and choosing a preferred location. Customers can click on a location to view a map and get directions. Many new locations will be added in the near future, for added convenience.

FTE is working with its current vendors, including epay, to provide additional cash-based services to its SunPass customers in the coming months.

“epay is extremely pleased to be partnering with FTE to offer a simple payment method to SunPass cash customers through our innovative technology platform,” said Eric Mettemeyer, Managing Director of epay Americas/APAC. “When customers reload their SunPass account at an epay location, they also have access to other cash-based products, such as prepaid wireless top-ups, bill payments and Internet credits.”

In June 2010, Florida’s Turnpike Enterprise became the first toll agency in the U.S. to provide its customers a program to replenish their transponders with cash at retail locations. FTE is a leader in transportation and continually strives to provide its customers value in the form of safety, service and convenience.

Source: Business Wire

Square Versus Intuit GoPayment: Mobile Payment Comparison

by

For business that want to accept credit card payments through their smartphones, there are quite a few choices available. Two leading contenders are Square and Intuit’s GoPayment. Both services offer this feature, but there are some differences that may sway your decision on which one is best for you.

For example, GoPayment requires a credit check, square does not. Intuit’s free reader supports the iPhone, and Square currently supports only Android or IOS devices.

Business Insider provides a good side-to-side comparison chart of these two services.

More information: Business Insider.

Starbucks Mobile M-Payment May Be Tipping Point for Mobile Payments

by

Drew Sievers believes Starbucks’ rollout of an app-based mobile payments system to more than 7,500 locations nationwide could represent a tipping point toward mainstream acceptance of the phone as a means to make purchases. And, ultimately, that adoption could pave the way for future advances in mobile and Near Field Communications payments.

Sievers, the co-founder and CEO of mFoundry, the mobile banking and payments solutions provider behind the app, says that Starbucks saw the ability for its customers to make payments through their mobile phone as a game changer. “They wouldn’t have done this if they didn’t believe it wasn’t valuable to them,” he adds.

via Bank Systems & Technology

Japan’s Softbank Mobile Selects Gemalto for Mobile Contactless Payment Trial

by

GemaltoGemalto, a leading digital security company, has been selected by Softbank Mobile for the latest mobile contactless payment trial in Japan. Softbank Mobile is a leading mobile operator in Japan with 21 million subscribers. The program is the first in Asia to enable secure mobile Near Field Communication (NFC) transactions from a choice of different credit card accounts. The pilot is expected to roll out in the first quarter of 2011.

Near Field Communication (NFC) is a short-range wireless technology that enables the communication between devices over a distance of less than 10 cm. The key benefits of NFC are compatibility with the existing contactless infrastructure and simplicity, as NFC is characterized by a natural and intuitive “just touch” movement.

“Gemalto’s end-to-end solution brings the simplicity and convenience of NFC, while ensuring interoperability across business partners in Japan and beyond.”

Softbank Mobile customers will be able to use their mobile phones for contactless payments in convenience stores, fast-food restaurants and theaters. The program also offers users the option to perform NFC transactions from two credit card issuers – Orient Corporation, the largest service provider of MasterCard PayPass in Japan, and Credit Saison, another Japanese leading financial institution. This is made possible by embedding multiple MasterCard PayPass applications in the secure UICC (Universal Integrated Circuit Card). UICC is the smart card used to authenticate the subscriber for GSM and UMTS/3G networks. Now in the pipeline for LTE, the UICC brings a host of fundamental features, tried and tested within GSM and now perfected for LTE.

For this program, Gemalto will provide a turnkey NFC solution comprised of its Allynis Trusted Services Management operated services, UICC cards and N-Flex devices. Gemalto’s trusted services allow for the secure deployment and management of contactless mobile payment. The N-Flex enables users to turn a conventional handset into an NFC-enabled mobile phone, without any change to the device.

“Gemalto’s end-to-end solution brings the simplicity and convenience of NFC, while ensuring interoperability across business partners in Japan and beyond,” commented Mr. Naoki Kinoshita, General Manager, SOFTBANK MOBILE. “Gemalto’s expertise in secure operated services will enable SOFTBANK MOBILE to focus on providing a broader range of value added services to our customers.”

“Japan is the most progressive country in the world when it comes to using the mobile phone for contactless services and Gemalto is delighted to support Softbank Mobile in this new project,” added Tan Teck-Lee, President, Gemalto Asia. “The advent of NFC in Japan will enable to massively deploy mobile contactless services in payments and other domains like transit, loyalty programs or couponing.”

Source: Business Wire