Mobile phones have increasingly become tools that consumers use for banking, payments, budgeting, and shopping. Given the rapid pace of developments in the area of mobile finance, the Federal Reserve Board began conducting annual surveys of consumers’ use of mobile financial services in 2011. This 78-page report, “Consumers and Mobile Financial Services” (March, 2015) examines trends in the adoption and use of mobile banking, payments, and shopping behavior and how the emergence of mobile financial services affects consumers’ interaction with financial institutions.
Visa Introduces Digital Wallet
Visa Inc. has announced the a number of new offerings, including a secure cross-channel digital wallet and a range of customized mobile payments services.
“Our new solutions deliver greater consumer choice, convenience and control while helping our clients grow their businesses. By helping to reduce abandoned online shopping carts and bringing new account holders into the Visa network, we create a win-win-win for merchants, consumers and financial institutions,” noted Joseph W. Saunders, Chairman and Chief Executive Officer of Visa Inc. “In addition, we believe Visa’s new payments products and services will help expand financial inclusion to the billions of mobile subscribers today who currently lack access to traditional financial services.”
In certain countries with established electronic payments infrastructures, expansive Internet usage and broad mobile network penetration, Visa will be introducing a digital wallet and services platform. The digital wallet will store Visa and non-Visa payments accounts, support NFC payments through the innovative Visa payWave application and deliver a wide range of transaction services to accommodate multiple commerce scenarios–including eCommerce, mobile commerce, micropayments, social networks and person-to-person payments.
Visa is working with various leading payments card issuers, community banks, credit unions, acquirers, payments processors and merchants to launch the digital wallet. Among the financial institutions and organizations supporting Visa’s wallet strategy are:
- Barclaycard US
- BB&T Corporation
- Card Services for Credit Unions (CSCU)
- ICBA Bancard
- First Financial Bank of Ohio
- Nordstrom fsb
- Pentagon Federal Credit Union
- PNC Bank
- PSCU Financial Services
- Regions Bank
- Royal Bank of Canada
- Scotiabank
- TD Bank Group (US and Canada)
- US Bank
Visa expects to launch the digital wallet in the U.S. and Canada in fall 2011.
Key features of the wallet are expected to include:
- Click-to-buy: Consumer enters an email address, alias or online ID and password, instead of a billing address, account number and expiration date. In addition, Visa is exploring dynamic authentication technologies that will bring added layers of security to online purchases.
- Cross-channel payments solution: The wallet consolidates multiple Visa and non-Visa payments accounts and can be used in mobile, eCommerce, social network and retail point-of-sale environments.
- Preference management: A menu that enables consumers to set preferences for how their wallet will work, allowing them to customize and control the features of their personal wallet from privacy settings to designating which account will be accessed based on merchant type or purchase amount.
- Merchant offers: A service that allows consumers to personalize their shopping experience by opting-in to receive money-saving discounts or promotions from participating merchants.
“The widespread adoption of Internet and mobile technology is changing the way people connect and transact across the globe, so we’re focused on delivering locally-tailored payments products and services,” said Saunders. “We are introducing new solutions for eCommerce and mobile devices that provide the same ‘Visa-quality’ experience–convenience, reliability and security–people enjoy when using their Visa cards at a retail location. In doing so, we are accelerating the global shift to digital payments by harnessing our brand, products, network and 50-plus years of payments experience.”
Mobilizing Payments in Emerging Economies
In certain emerging geographic markets with significant mobile penetration, Visa will work with financial institutions and mobile-network operators to provide consumers with a secure, reliable and globally accepted form of payment and the ability to transfer and receive funds, manage financial accounts or top-up wireless air time using their mobile handset. The wide range of features and functions being developed for the digital wallet will allow Visa to pursue a number of strategies to tailor or bundle services to local needs.
- In countries like India and Russia, where card issuance and mobile subscriptions are high, but card usage is relatively low, Visa will help drive account activation and usage by working with financial institutions and mobile operators to link existing card portfolios with mobile devices to give handsets payments functionality.
- In countries within Africa and the Middle East where mobile device usage is high and traditional electronic payments infrastructure is less developed, Visa will work with mobile network operators to link new virtual mobile prepaid Visa accounts to mobile phone numbers to enable cash-in, cash-out, personal payments and mobile payments –including bill payments and wireless airtime top-up. Visa also intends to connect existing “closed loop” mobile money services that today provide basic mobile banking and payments services to unbanked and under-banked consumers to its global, open loop network–VisaNet. The integration will open closed loop systems, and provide consumers and merchants with unprecedented scale, functionality and acceptance beyond their existing local geographic footprints.
Across all emerging geographic markets, Visa’s payments technology and significant work in establishing global payments standards will aid in navigating the complexity of the myriad of network operators, handset models and operating systems in use globally, helping to enable millions of new and existing Visa account holders to simply use mobile technology for payments services.
Expanding Capabilities of Visa Network
Visa is developing its next generation services by integrating VisaNet, its global processing network, leading credit, debit, prepaid and commercial product platforms, new capabilities it has acquired through its subsidiaries CyberSource, Authorize.net and PlaySpan, and the unique expertise and services of key commercial partners. In deploying flexible solutions that are locally relevant and globally interoperable, Visa aims to attract more participants to its network and better enable them to connect and transact.
“Our build, buy and partner approach puts Visa in a unique position to deliver the speed-to-market and scalable solutions needed to stay ahead of new demands created by the convergence of Internet, mobile and electronic payments technologies,” said Saunders. “Visa and our subsidiaries are working with financial institutions, merchants, mobile network operators, and innovative technology providers to bring new ways to pay and be paid to more consumers and merchants around the globe.”
Source: Business Wire
Bankons Launches Mobile Merchant Offer Platform
Bankons recently launched its mobile merchant offer platform, which provides financial institutions a platform to engage with their customers via smartphones. Bankons delivers mobile merchant funded offers that are geo-located and linked to a customer’s transaction history.
Linking geo-located offers from local merchants with geo-located transactions, the Bankons platform then incorporates customer bank transaction history making the offers highly targeted and timed to the moment of purchase intent by delivery to a smartphone app rather than a paper bank statement or an email buried in an inbox. According to the company, this helps financial institutions increase customer loyalty by delivering repeated savings to the consumer at the most useful moment.
Linking transaction history to geo-location lets financial institutions offer suggestions at the moment of purchase and can provide an additional revenue stream to financial companies through mobile merchant funded offers, adding a new income stream independent of interchange fees and requiring no account managers to oversee custom programs. Bankons is available as a co-branded white label application, or it can be embedded as a native experience inside existing mobile applications via Bankons API integration.
“With Bankons financial institutions are able to connect with their customers on daily basis whenever the customer checks their smartphone for anything from a bank balance to directions to their favorite restaurant,” said Joshua Greenough, founder and CEO. “The power of our platform to link transaction data to a customer’s location makes it possible to deliver highly targeted and welcomed offers, creating new and repeated revenue opportunities for financial institutions and savings opportunities for consumers. It’s a win-win situation.”
Bankons makes the consumer experience simple with no complicated demographic profile for the customer to fill out. They simply enter their bank login information into the consumer app and the transaction data is linked to geo-location data through the powerful platform. Customers are then presented with a variety of local offers, based on where they are and their purchase preferences. Bankons provides information on nearby discounts and deals along with directions on how to get there.
“While slow to adopt new technologies, the financial sector has really embraced innovation in recent years,” said George Nguyen of George Nguyen Consulting, a marketing and business alignment consulting firm. Currently consulting with clients such as the Fed and Wells Fargo, Nguyen was formerly in Business Intelligence with Coupons.com and Washington Mutual. “They know that their future success depends on winning customers over by delivering the best experience possible. With Bankons, Joshua and his team have developed a product that creates a positive consumer experience, repeatable on a weekly if not daily basis, while also providing a repeat revenue opportunity for financial institutions without effort on their part. I’m excited to watch as banks begin to take advantage of the enormous opportunity that Bankons has created.”
According to The Mobile Movement Study by Google/Ipsos OTX MediaCT earlier this year, 9 out of 10 searchers have taken action as a result of a smartphone search. The patent-pending Bankons platform creates a new opportunity for banks and consumers to reap greater benefit from these searches than ever before.
Source: PR Newswire
BankAtlantic Launches New Mobile Banking Application
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
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
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
Mobile Payment Strategies Opportunities & Markets 2011-2015
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
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.
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
Mobile Money Network Announces UK Service, “Simple Tap”
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…]
ING Direct Launches Mobile Banking App for BlackBerry PlayBook
ING Direct Canada has announced the launch of a BlackBerry PlayBook App to its suite of mobile banking applications. According to the company, ING Direct was the first bank in Canada to offer a BlackBerry App, iPhone App and mobile website simultaneously last year, and has since added iPad, Android and Windows Phone 7 Apps.
The company’s new PlayBook App, released today, will let Canadian consumers bank from their BlackBerry PlayBook devices. The App allows clients to check their account balances, review transactions, transfer funds, buy and sell The Streetwise Funds, and get directions and hours of operation for the ING Direct Cafés.
“We know that mobile banking today represents what the ABM did in the 1980’s – the future of banking,” said Peter Aceto, President and CEO of ING Direct. “Mobile banking Apps give people the ability to have their own personal branch in their pocket. This is the future of banking and our PlayBook App is another example of ING DIRECT leading the industry in mobile banking and helping Canadians stay closer to their money, something we’ve been advocating for 14 years.”
Source: ING Direct
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