Wallet Mediaand its founder and chief editor, Randy
Smith, introduce an invention that may solve the problem of
standardization in mobile payments.
NFC or Near Field Communications technology is broadly used in Japan to
enable mobile payments. NFC replaces the swipe of a magnetic-stripe
through a credit card terminal. With NFC, the consumer taps their mobile
phone, equipped with NFC, to a payment terminal also equipped with NFC.
NFC uses a short range radio signal to transmit card credentials. Here
in America, despite years of best efforts by Google, ISIS, MasterCard,
Visa, major banks, mobile carriers and many others in promoting NFC as
their technology of choice, NFC is still only present in less than 10%
of retail payment terminals and smart phones in use today.
This delay of adoption has opened the door for several alternative
methods to surface. PayPal, LevelUp, Square, Tabbedout, Dwolla, Mocapay,
Paydiant, Corfire and mFoundry offer alternative solutions to NFC such
as the scan of a QR code, mobile check-in or display of a code, name or
picture to the cashier. This has effectively worked to fracture the
market, thus preventing the formation of an industry standard similar to
what we have with magnetic-striped credit cards. Merchant Customer
Exchange (MCX) was recently founded to solve the problem of
standardization in mobile payments. A few of the MCX retail partners are
Wal-Mart, Target, The Gap, Lowes, Best Buy, Shell and 7-11.
So what is the invention? The invention will enable a mobile or digital
wallet to utilize any mobile payment technology adopted by a retailer. A
retailer must be registered for a mobile wallet using the inventions
technology. The mobile payment service provider must also be integrated
to work with the inventions technology. A single mobile app or website
is used complete transactions using the inventions mobile payment
How it Works
1) Login into mobile app, 2) Verify store location, 3) Within a single
mobile app or web site, the invention enables the use of the mobile
payment technology adopted by the retailer, be it NFC, scanning a QR
code or any other method and will be white-labeled or connect to the
native apps interface and technology to complete the transaction.
Read complete story: MobileWalletMedia.com.
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Information Source: Business Wire