Tag Archives: POS

Digging a wider moat: Apple shifts to loyalty

Wallet

Apple eschewed banks for a retailer focus onstage at the WWDC when it spoke to payments. I sense this is an intentional shift – now that stateside, you have support from all four networks and all the major issuers – Apple understands that it needs to shift the focus on signing up more merchants, and everything we heard today drove home that note. That includes Square’s support for NFC, as well as the announcements around Kohls, JCPenney and BJ’s. MasterCard’s MDES (opposite Visa’s VTS) is the tokenization service that has enabled these partnerships – specifically through MA’s partners such as Synchrony – their press release linked – (former GE Capital) which brought on JCPenney, Alliance Data which brought on BJ’s, and CapitalOne which enabled Kohls. Continue reading

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From Chip to NFC: A necessary evolution

Consider this: Over its Sept 19th launch weekend, Apple has effectively shipped over 10 million EMV cards. Maybe these weren’t actual cards – rather, containers that could end up being a host to over 80M issuer cards eligible for Apple Pay. So how many among those will knock on a retailer’s door at launch? Initial device sales are to a loyal fan base. Should be easy to guess. Should be easy to spot too, as the aggregate NFC payment volume in US has never been more than a whimper. Continue reading

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Apple in Payments: Bluetooth Edition

bluetooth

This is the Part II of my Apple in Payments take – and it’s early because of the leak last week around Apple’s MFi program. In the first half of my take, I had touched upon Apple’s program for 3rd party hardware attachment market as being significant and likely to be a key aspect of its payments approach. So below, I will cover more on the approach, how Bluetooth will be the standard of choice – not NFC, and how Apple plans to secure Bluetooth enough to be able to handle payments. Continue reading

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Apple in Payments – A Disruptor’s dilemma

signatureThis post is an attempt to look beyond what the presence or absence of any specific radio in iPhone6 may mean to Apple’s intent in Payments and instead – provide some color around three things that are part of this debate: a) Bring 800M credit cards on file in perspective b) Address the question of radios on the device – a topic that has a disproportionate share of the debate and finally c) Consideration of steps made by Apple to secure both iOS and its devices as waypoints in its payments journey. Oh wait, that last one is not part of the Apple payments debate today. I believe it should be. Read on to see why. Continue reading

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Lessons from a breach

iceberg

In the days following the Target breach, both clarity and objectivity are in short supply. Everything that didn’t already exist became suddenly the cure-all – EMV being one. Retailers bristle, albeit in private – due to the asymmetry in blame they have come to share compared to banks – despite having equal ownership of the mess they have come to call payments. Issuers and Schemes scramble to find an empty deck chair on the Titanic, just to get a better view of the first of the lifeboats capsizing. Continue reading

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Return of NFC: Curse of the Secure Element

Return of NFCThis post is in response to the recent Bankinter story of NFC payments at the point-of-sale without requiring SE – and the lack of any real detail around how it plans to achieve that goal. I am not privy to Bankinter’s plan to dis-intermediate the SE, but as I know a wee bit about how NFC works, I thought a post would help in clearing up any ambiguity as to how Card emulation and Host Card emulation differs, upsides, challenges – the whole lot. Continue reading

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There and Back again – A customer journey with Paypal

I remember creating my Paypal account back in 2000 when an acquaintance of mine wanted to split the lunch tab with me, and sent me $20 via email a couple of days later. I remember hurriedly opting to cash out via check, having little trust in a newfangled payment startup. That $20 actually languished in said Paypal account (despite issuing a check that ended up never being cashed) for another couple of years before I actually did something with that money and my Paypal account. What follows is the rest of that journey. Continue reading

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Let’s talk about Fraud

I am in Vegas and I am fascinated by my room key. This is not the usual “insert in to the slot, wait for it turn green or hear it chime” key cards, these are “tap and hold to a door scanner till the door opens” RFID key card. It is befitting the event I am about to attend – Money2020 – the largest of its kind bringing together over 2000 mobile money afficionados, strategists and technologists from world over for a couple of days to talk about how payment modalities are shifting and the impact of these shifts to existing and emerging players. Away from all the excitement of product launches, I hope some will be talking about one of the major barriers for consumer adoption towards alternate payment modalities such as mobile – security and fraud. Continue reading

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Vinod Khosla on Retail & Emerging Payments

It was Vinod Khosla’s Cliff notes on “What makes entrepreneurs entrepreneurial” that turned me on to Dr. Saras Sarasvathy’s brilliant paper and other works on effectual reasoning vs causal reasoning. Likewise, he is prescient in his post on Techcrunch about the areas in mobile and internet today that are silent performers. And alongside the well known areas and ideas such as Big Data, Data Reduction, Internet of things, I found the following section(s) that I have reproduced below: Continue reading

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Google Wallet, Meet me at Camera 3

I really didn’t intend this to be my next post on the DROP Labs blog. I was not planning to write about Google Wallet – again. I have an unhealthy obsession towards it, evidence of which can be found here, here, and here. After the last one, which chronicled my On the road experiences, I pretty much decided not to write about it for a while. There were other things I wanted to write about – Issuer strategy on mobile wallets, Ongoing turf battles between Platform providers/Manufacturers vs Carriers, and then it happened again. Continue reading

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