The target market is mostly small businesses, particularly those that are mobile. When they’re reading to ring up a customer, they simply tally up the order in the app–either by selecting items they’ve added to their inventory or simply punching in the full amount–and then select the method of payment. If they opt for a credit card (or presumably debit card too), you use the swiper in the triangle-shaped credit card dongle. The customer adds a tip (if desired) and signs right on the iPhone’s touchscreen. Yes, that means handing over your iPhone to your customer.

The PayPal Here app can also be used to accept payment via cash, check (using the iPhone’s camera), invoice, or PayPal. I imagine they’d have to sign into their PayPal account to get it to work, which could be a little time-consuming. You’ve also run into a snag if someone has a chip and PIN-enabled credit card, since the swiper only seems to work with the standard magnetic stripe.

In any case, the initial rollout is planned for USA, Australia, Hong Kong and Canada. Merchants are charge 2.7% on card swipes and they can get a business debit card with 1% cash back on eligible purchases. The little dongle, which simply plugs into the headphone jack on your iPhone, is free upon request.

[Source]

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The Google Nexus S has a near field communications (NFC) chip in it, so you know that Google is interested in pursuing this technology for a variety of purposes. The most obvious application is mobile payments and it looks like the search engine has just made its next big move on this front, buddying up with MasterCard and Citigroup to make it happen.

The concept of using NFC for mobile payment isn’t novel, by any stretch, but it’s just on the cusp of hitting the mainstream in North America. This partnership could really be the tipping point, rendering the “barcode” style Starbucks app obsolete. Just tap the phone, pay for your latte, and be on your merry mobile way.

The interesting thing is that Google isn’t at all interested in taking a cut from the transaction revenue. Instead, it’s going back to its search business, selling (aggregate) customer information back to retailers. The stores can then offer targeted ads and discounts to their customers.

Considering all the security things with chip-and-pin technology, requiring signatures, and all that jazz, it’s almost ironic that they want to make it as easy as tapping a phone to pay for a new Xbox at a brick and mortar store. Now, if you lose your phone, you could be losing so much more. The thief can check your email, update your Facebook, and potentially load up on filet mignon at Morton’s Steakhouse!

[WSJ]

The post Google Partners with MasterCard, Citigroup to Develop NFC Payment Scheme appeared first on Mobile Magazine.

What do you get when you bring together some of the major giants in business? The answer is simple: a lot of money. And how do the giants make that money? By making it easier for people like you and me to give them that money. This is exactly what’s coming our way. A mobile phone based payment system.

Apparently, AT&T, T-Mobile and Verizon seem to be unaffected by the Global Economic Crisis. Or perhaps they have figured out a way to combat the crisis. Either case, the fact of the moment is that the three firms have decided on a name for their mobile phone based payment system. And the name is (assume drum-rolls in the background) Isis!

Ok, so what exactly is this payment system? Just another check-out portal? Well, sort of. It is a method for using an application on your phone to send payments to a POS system using NFC (Near Field Communication) technology. This means that using Isis, one will be able to make point-of-sale payments to vendors. Initially, Isis will be available to the 200 million users of AT&T Mobility, T-Mobile USA and Verizon Wireless. Barclaycard US is expected to be the first issuer of the same. Judging by what the three founders have to say, Isis is expected to be the Paypal-of-the-future. Using NFC, encrypted exchange of information shall be possible and thus, Verizon’s claim that Isis will eventually replace credit cards and cash may seem far-fetched but definitely not impossible. Isis is expected to roll out to major regions within the upcoming 18 months.

[Isis]

The post AT&T, T-Mobile and Verizon announce new mobile based payment system appeared first on Mobile Magazine.

Swipe your ZoomPass tag module to make a transaction.

It sounds very similar to some systems you may have seen overseas, but it seems that the “use your cell phone as a payment system” technique is being fully transferred over to the Canadian marketplace. Following up on Zoompass from EnStream is the new Zoompass Tag.

Bell Mobility, Rogers, and Telus are all on board with this new technology, since they are a part of the joint venture known as EnStream LP. With ZoomPass Tag, you effectively tap your cell phone at a point of sale machine and the payment goes through in matter of seconds.

Your mobile phone, with the aid of a special sticker, is transformed into a virtual credit or debit card. This works with the PayPass system that you may have seen at places like Tim Horton’s and Superstore. Since it is based on Mastercard, it is no less secure than using the conventional piece of plastic and it is completely contact-less.

The ZoomPass Tag is currently going through a three-month pilot project and they will evaluate the results at the end of that period. What makes the ZoomPass tag special is the mobile application that you will use to track  purchases, without that it’s just as good as any other key fob.

Mobile payment services are expected to grow to 103.9 million users worldwide in 2011, according to Gartner Research.

ZoomPass Tag on the backside of an iPhone. ZoomPass App on an Android HTC smartphone.

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The One Card Electronic Card is meant to replace every credit card in your wallet. An OLED display occupies the entire face of the device and it will display the information that you would normally see on the front of a credit card. When you want to swap your MasterCard for your Visa, you simply turn the dial on the side.

In doing so, the OLED display will switch to your Visa. What about the magnetic strip, you might ask? There is a special strip on the back that mimics this functionality as well and it will switch at the same time as the front display.

As if the credit card swapping functionality were not enough, the OLED display will also be used to record your transactions and show off your purchase receipts as needed. All of the information for the cards and transactions is stored on a removable memory card, so you can save it on your computer too.

Aside from the technological hurdles, the single biggest obstacle before the One Card Electronic Card can graduate from concept status is to get the support of the major banks and credit card issuers. That might take a while.

Source: Yanko

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