Mobile Payment Magazine

Top Mobile Payment Solutions without Startup Costs

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The ability to process credit cards using a mobile device is gaining well-deserved attention across the credit card processing industry. Joseph Brady, an avid entrepreneur in various industries since 2006 and featured writer for BizOffice.com, recently updated business owners on the available mobile processors.

Square Credit Card Processing, the major name in mobile credit card processing, has gained a large following since Jack Dorsey the co-founder of twitter also became a founder and CEO of Square. Receiving slightly less press but nevertheless major players in the mobile processing world, Pay Anywhere and Inuit GoPayment are making major strides to accommodate their customers.

Brady ranks Pay Anywhere as number one for mobile payment solutions “with no startup costs, monthly minimum, monthly service fee, competitive rates, multi- device platforms, and very few complaints with the Better Business Bureau Pay” (http://www.bizoffice.com/top-three-mobile-payment-solutions). The swiped rate with their free credit card reader is 2.69%; keyed transactions are priced at 3.49% and $0.19 per transaction.

Intuit GoPayment, listed second for mobile processing solutions by Brady, is a reliable source for both Android and iPhone devices. The benefits for Inuit GoPayment match Pay Anywhere for the most part; Brady finds their competitive edge in their service for both low and high volume merchants. Brady suggests those who process a low volume seriously consider Inuit since no “monthly minimum opens up the market of people who would like to process cards from time to time but not enough to justify the monthly fees that come along with a typical merchant account.”

Compatible with Android, iPad and iPhone devices, Square is rated third because of the degree of restrictions it places on its users. Square lacks customer service and keyed transactions, a constant necessity when swiping falls, is placed within a monthly minimum. Exceeding that minimum results in keyed transactions funds being held for thirty days, a major hindrance to up and coming businesses.

Mobile payment solutions are hitting the processing industry with force. The convenience for customers to pay and quickly have businesses run their credit cards is beneficial on both ends of the payment. Brady’s insight into the mobile processing world is highly appreciated. His ideas in full are found on the Biz Office website at http://www.bizoffice.com/top-three-mobile-payment-solutions.

Source: BizOffice.com.

NFC Payments USA: Nov. 2-3, 2011, Miami, FL

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NFC Payments USA conference and Exhibition has been developed to offer you industry professionals a clear path to develop NFC payments as a commercial proposition and to provide attendees with the contacts to do so.

  • Finally meet the contacts and partners you need: This is the first opportunity for North America’s NFC community to meet under one roof and drill down into key strategies for commercial rollout
  • Reach critical mass: The latest forecasts on how soon it will happen, plus drivers such as bridging technologies, coupons and loyalty programs
  • Overcome lack of devices: Hear from industry experts and understand what to do to ensure your business remains unaffected
  • Definitive business models: What’s best for banks, carriers and other parties? Plus protecting your organization and making money from day one
  • Triumph over interoperability issues: Best ways to deliver interoperability between carriers and banks and create a positive experience for everyone
  • Inside Wallet Wars: Understand what the rise of the wallet means for your business and get valuable ideas to differentiate your offering within a wallet

This is the only event in North America to unite Banks, Payments, Mobile Carriers, Handsets providers and chip providers all intent on unleashing the industry’s rich profit potential.

The conference brings together leaders in the  industry to share their knowledge with you. From MasterCard to Nokia, Citigroup to Amex, IBM to Coupons Inc. you will get key insights from the industry’s most respected members and ensure you’re on the right path to success.

More information: NFC Payments USA

U.S. Advanced Payment Summit: Nov. 28-29, 2011, Washington, DC

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The US Advanced Payments Summit (Nov 28-29, 2011, Washington D.C) is the only place to meet industry leaders with cutting edge innovations and strategies in mobile and contactless, government and transit payments.

With over 75 senior payments speakers from the fastest growing sectors, this is the best opportunity you’ll have all year to benchmark your advanced payments strategy to build a more comprehensive business case to secure investment.

Speakers include:

  • Candace Carlson, Operations Manager, ORCA (Seattle)
  • Tonya Dunyon, EBT Coordinator, Utah Department of Workforce Services
  • Walt Henderson, Director, EFT Strategy Division, U.S. Department of the Treasury, Financial Management Service
  • Sean Patrick Kemple, PMP, Navy Cash Program Manager, US Department of the Treasury, Financial Management Service
  • Connie Reinhardt, Staff Director, Office of Administrative Services, Florida Department of Children and Family
  • Al Rios, EBT Bureau Chief, Office of Temporary and Disability Assistance, Division of Employment and Transitional Supports
  • Sarah Rotman, Microfinance Analyst, CGAP
  • David Dick, Electronic Revenue Collection Program Manager,Golden Gate Bridge Highway and Transportation District
  • Dara Duguay, Director, Office of Financial Education, Visa
  • Catherine Murchie, Group Head, Transit, MasterCard
  • Ames Robb, EBT Coordinator, Department for Children and Families, Vermont Agency for Human Services
  • Brian Triplett, Head of Commercial and North America Prepaid Products, Visa
  • Mung-Ki Woo, Global Mobile Team Lead, MasterCard
  • Sabha Sobhani, Programme Manager, United Nations Programme Development (UNDP)
  • Safwan Shah, CEO at PayKloud (Former Founder & President of Infonox at TSYS)
  • Marc B. Keller, Global Enterprise Payments, Director, Digital Networks & Mobile, Citigroup

This multi-industry gathering presents never before heard case studies on cutting edge payments systems, guaranteeing you will go back to the office having identified cost-saving programs to meet your requirements.

  • What exactly is your business case for investing significantly in an advanced payments systems and what is the best solution for your need?
  • In a time of limited budgets, how much are state and federal agencies saving from the transition of cash to advanced forms of payments and disbursements? How can you demonstrate cost saving strategies in your RFP?
  • How can you create and leverage open dialogue between operators, agencies, card networks and banks to create partnerships and uniform advanced payments standards?

Find out more at www.advancedpaymentssummit.com.
T: +44 (0)20 7067 1831. E: advancedpayments@clarionevents.com

Chinese Company B.Shark to Extend Mobile Payment Offering to Physical Goods

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Years ago, operator billing was only applied for value-added services such as ringtones, ring back tones, wallpaper, news, music, and the like. Later it was applied to other fields such as mobile games, game tools and the mobile application market. Now, operator billing is extending to more and more fields, including physical goods payments. B.Shark, a Chinese company offering worldwide mobile payment solutions, now plans to extend its offerings to physical goods payment.

Operators are concerned about being a communication/data channel only, so some operators are reducing operator revenue share, especially reducing their own revenue share when it comes to physical goods payments. That is to say, when customers pay for physical goods via operator billing, merchants will receive a higher revenue share than for virtual goods. This strategy will increase the competitive power of operators when competing with banks.

“B.Shark will launch a physical goods payment solution with the cooperation of an overseas e-commerce platform,” according to the marketing director of B.Shark.

Other mobile payment companies, such as Paypal, Boku and Zong, are also planning to cooperate with e-commerce platforms in the field of physical goods payments.

Source: B.Shark

Google Wallet and Retail NFC Mobile Payments Ignite Buzz, Says ABI Research

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Recent developments in contactless payment technology are generating renewed interest, and suggest that the long-delayed dream of comprehensive contactless payment systems may finally be approaching reality. The introduction of Google Wallet and the expectation that several new NFC-enabled smartphones will reach consumer markets soon have created a sense of optimism.

According to ABI Research, in 2010 only about 10% of total POS terminal shipments included some form of contactless technology. While the analyst firm does not agree with some of the wilder media predictions for contactless POS growth – for example that within 12 months, one third of all terminals in the US will accept contactless payments – it does forecast that 85% of terminals shipped worldwide will be contactless-enabled in 2016, driven by increased proliferation of contactless cards and especially, rapid adoption of NFC-enabled cell phones.

Senior analyst Craig Foster comments, “Contactless has the potential to change the way we pay for goods completely, significantly reducing time spent queuing at the point of sale. It also represents an almost perfect fit for the vending industry, because:

  • The increased speed and simplicity of check-out go hand-in-hand with the very essence of the vending machine – to provide goods quickly and conveniently;
  • The fact that small-value transactions – typically under $25 in the US – do not need to be authenticated by signature or PIN entry is very appealing to vending machine operators.”

M2M practice director Sam Lucero adds, “Contactless technology is also in the very early stages of adoption in ATMs: rather than inserting the card, a customer waves it in front of the machine and enters a PIN.”

Ingenico, VeriFone, and Hypercom are the three leading vendors of POS terminals and command most of the market. VeriFone recently completed the acquisition of Hypercom after satisfying the antitrust concerns of the US Department of Justice. Contactless terminals have formed an increasingly significant part of Ingenico’s portfolio in recent years, accounting for a claimed 21% of the company’s shipments in 2010.

ABI Research’s “Cellular-enabled POS Terminals, ATMs, and Vending Machines” study examines the overall market opportunity for each segment, with a particular focus on value chains, competitive landscapes, market adoption drivers and inhibitors, and technology issues.

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 40+ research and advisory services. Est. 1990.

Source: ABI Research

B.Shark Holds Forum on Who Will Play a Leading Roll in Mobile Payments

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B.Shark, a Chinese company offering worldwide mobile payment solutions, recently collaborated with SPforum, the largest microblog dedicated to the Mobile Internet industry in China, to hold a forum about who will play the leading role in worldwide mobile payments. The discussion was lively, and experts from Paypal and Alipay participated, among others.

Some highlights from the forum include:

  • “Telecom Operators, Financial Companies (such as Banks) and third-party payment companies (such as Alipay, Boku, Zong) are playing important roles in mobile payment,” said Mr. Peng, an expert from Paypal.
  • Operators have huge numbers of mobile subscribers and have a good understanding of  the behavior of mobile subscribers; and operators’ customer care centers can also be the customer service centers for mobile payment transactions.
  • The advantage of financial companies is that banks have the best understanding of customers’ payment behavior, and bank branches also can be the place to educate customers about how to use mobile payments.
  • Third-party payment companies, such as Alipay, Boku, Zong, Obopay and Square are playing a more and more important role in mobile payments. “Third-party payment companies always try to improve service for customers and integrate resource from different organizations in the payment value-chain; this is the advantage of third-party payment companies,” said Mr.Ding, an expert from Alipay.

In the area of global payments, mobile payment can be divided into three areas geographically. “In Asian countries, especially Japan and South Korea, with the strong support from operators, a large quantity of applications and services based on NFC drive NFC payment forward; In Africa, only around 20%-30% of adults have bank accounts, mobile payment via telecom networks are successful, M-Pesa in Kenya is an example; In America and Europe, the redit card industry is matured, however operators also try to play a role. For example, Everything Everywhere, O2 and Vodafone, formed a joint venture to accelerate the uptake of mobile commerce in the U.K, and AT&T, T-Mobile, Verizon also formed a joint venture mobile company named Isis utilizing near-field communication (NFC) technology in the U.S.A,” said ZhongYuan, Zhang, COO of B.Shark. “The fact that eBay bought Zong for $240 million in cash, shows the value of third-party mobile payments focused on operator billing.”

The mobile payment chain is very long. It includes telecom operators, banks, third-party mobile payment companies, mobile phone producers, etc. When all the parties cooperate, the mobile payment will move faster and more smoothly.

Mobile Payment Startups

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Venmo was founded by under 30-year-old entrepreneurs Andrew Kortina and Iqram Magdon-Ismail in Philadelphia. Fewer people carry cash these days and Kortina and Magdon-Ismail saw this as an opportunity to tackle the simple problem that comes with paying back friends and family while on-the-go. Venmo lets friends pay each other back for anything – lunch, dinner, drinks, rent, groceries, tickets, trips – whatever. It works with all the major banks in the US, like Bank of America, ING, Chase, Wells Fargo, Citi, etc., making it very easy for users to adopt.

Overview of Mobile Payment options:

  • Venmo
  • Zong
  • Square
  • iZettle
  • Google Wallet
  • Starbucks
  • TabbedOut

Red full article, via Tech Cocktail.

Mobile Banking and Payments Report: The Role of the Mobile Phone as a Banking Device

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With over 2 billion users worldwide, mobile phone usage penetrates every core demographic of the world’s population. Research and Markets has announced the release of a new report entitled “ Mobile Banking and Payments.” The report assesses the role of the mobile phone as a banking device as well as a payment function. The report provides readers with the ability to:

  • Assess the prospects for mobile banking and payments
  • Learn how additional revenue can be raised through value added services
  • Review the strategic and operational issues that face the mobile banking sector
  • Study the profiles of leading banks within the mobile banking arena

After abandoning initial roll-outs a few years ago following poor consumer take up, banks worldwide are now re-entering the market. Mobile banking is an opportunity and a threat to established retail financial players. The first section of this report provides the business case for successful mobile banking. It presents the short-term solutions and the longer-term strategy needed to create a successful program.

Key Points Addressed in This Report:

  • The mobile banking phenomenon explained.
  • Trends among emerging and developed markets.
  • Mobile banking and mobile payments defined.
  • Reasons for low adoption by banking customers.
  • Importance of mobile as a marketing tool and as a customer retention strategy.
  • Negotiating the relationship between banks and mobile carriers.

Case Studies and Examples Include:

  • Bank of America
  • Blaze
  • Charles Schwab
  • Citi
  • ClairMail
  • Co-op Bank
  • Elite mBanking
  • Facebook
  • Fi-Mobile
  • First National Bank
  • iTunes
  • Mfoundry
  • Microsoft
  • Mshift
  • MTN bank
  • Nokia
  • Paypal
  • Regalo Card
  • St George Mobile Banking
  • Sun mBanking
  • Twitter
  • Vancity CU
  • Visa
  • Wells Fargo
  • Wizzit bank

Key Topics Covered:

  • Business case for mobile banking
  • Business case for mobile banking
  • Generate revenue through value added services
  • Enhance other delivery channels
  • Marketing via the mobile channel
  • Banking the unbanked
  • Strategic and operational issues
  • Choosing the technology platform
  • Security considerations
  • Usability considerations
  • Marketing considerations
  • Market profiles
  • USA
  • South Africa
  • Key emerging markets

More information: Research and Markets – “Mobile Banking and Payments Report”

 

Source: Business Wire

Hypercom Mobile Payments Terminal to be Marketed by Avant-Garde Marketing Solutions

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Hypercom Corporation today announced that Avant-Garde Marketing Solutions, Inc., an independent sales organizations,  is now marketing Hypercom’s Optimum M4230 multi-application mobile payment terminal and Mobile Network service to its thousands of merchant customers nationwide. Financial terms were not disclosed.

Avant-Garde will market the M4230 mobile terminal with Hypercom’s Mobile Network as an affordable bundled solution that increases businesses’ revenue by enabling them to extend their payment acceptance reach beyond fixed locations.

“The M4230 with Hypercom’s Mobile Network dramatically simplifies activating, conducting and managing wireless transactions, eliminates unnecessary gateway transaction fees, and is a reliable high-security solution that can be deployed anywhere,” said Michael Varian, Director, Avant-Garde Marketing Solutions, Inc. “Demand for mobile payments is clearly increasing as merchants themselves become more mobile. Hypercom’s Mobile Network service and terminal is a perfect package to address the increasing mobile needs of our customers.”

“Avant-Garde’s selection of Hypercom’s GPRS terminal plus network service package is an innovative, highly secure, cost effective and easy to use solution to support the soaring demand for mobile payment acceptance,” said David Cronin, President and Managing Director, North America, Hypercom Corporation. “Many ISOs, distributors and payment processors serving thousands of merchants nationwide have already chosen Hypercom’s mobile solution over all others. And demand continues to grow.”

Unlike competing solutions, Hypercom’s Mobile Network service features simple, usage-based billing with no roaming charges, no additional transaction fees, fast and simple browser-based SIM activation, and 24/7 technical support from a single, secure, reliable source.

Hypercom’s global GPRS network connects to more than 200 networks in over 90 countries.

Source: Business Wire

Worldwide Mobile Payment Volume Up 76% to Reach $86 Billion in 2011

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Worldwide mobile payment users will surpass 141.1 million in 2011, a 38.2 percent increase from 2010, when mobile payment users reached 102.1 million, according to Gartner, Inc. Worldwide mobile payment volume is forecast to total $86.1 billion, up 75.9 percent from 2010 volume of $48.9 billion.

Despite these strong growth projections, Gartner analysts said the mobile payment market is growing slower than expected.

“In developing markets, despite favorable conditions for mobile payment, growth is not as strong as was anticipated. Many service providers are yet to adapt their strategies to local requirements, and success models from Kenya and the Philippines are unlikely to be translated to other markets,” said Sandy Shen, research director at Gartner. While developing markets have favorable conditions for mobile payments, such as high penetration of mobile devices and low banking penetration, this is no guarantee of success, unless service providers adapt their strategies to local market requirements.”

“In developed markets, companies are trumpeting the prospects of Near Field Communication (NFC) without realizing the complexity of the service model. We believe mass market adoption of NFC payments is at least four years away,” Ms. Shen said. “The biggest hurdle is the need to change user behavior by convincing consumers to pay with mobile phones instead of cash and cards.”

Gartner expects Short Message Service (SMS) and Unstructured Supplementary Service Data (USSD) to remain the dominant access technologies in developing markets due to the constraints of mobile phones. Wireless Application Protocol (WAP) will remain the preferred mobile access technology in developed markets, where the mobile Internet is commonly available and activated on the phone. Mobile app downloads and mobile commerce are the main drivers of WAP payments, and WAP will account for almost 90 percent of all mobile transactions in North America and about 70 percent in Western Europe in 2011.

Money transfers and prepaid top-ups will drive transaction volumes in developing markets. These are seen as the “killer apps” in developing markets, where people value the convenience of sending money to relatives and topping up mobile accounts. This is most obvious in Eastern Europe, the Middle East and Africa, where these two services will account for 54 percent and 32 percent of all transactions in 2011.

“Thanks to the success of mobile application stores, such as Apple’s App Store, and the efforts in driving mobile sales by major retailers, such as Amazon and eBay, merchandise purchases far outweigh other use cases in developed markets, which include North America and Western Europe,” Ms. Shen said. “We predict that in 2011, merchandise purchases will account for 90 percent and 77 percent of all transactions in North America and Western Europe, respectively.”

Additional information is available in the Gartner report “Market Trends: Mobile Payments Worldwide, 2011.”