Posts Tagged ‘mobile payments’

Dine and dash: TGI Friday’s lets customers pay their tabs on iPhone and Android

venerdì, aprile 27th, 2012

Giving new meaning to the phrase “dine and dash,” feel-good restaurant chain TGI Friday’s has released an application for iPhone and Android that lets diners pay their tab right from their mobile device.

The application, called “Friday’s,” lets customers start a tab, keep track of their bill, and checkout with a click of a button at roughly 350 of the establishment’s 600 U.S. locations.

The app, released this week on the top two mobile platforms, is meant to supplement TGI Friday’s refreshed brand strategy around creating a better dining experience and is said to be the first of its kind from a casual dining chain.

Here’s how it works: Customers who click to open a tab in the app are presented with a five-digit code to show to their server. The server matches the code on the restaurant’s point-of-sale system to tie the tabs together. The app user then orders with the server as usual, but can follow her tab on her phone and choose to pay at her leisure. Transactions are processed using credit card info saved inside the application.

TGI Friday’s mobile payment functionality is powered by Austin-based startup Tabbedout, a company with consumer-facing mobile applications of its own that allow users to locate participating restaurants and take care of their checks from their phones. The startup makes a solution that currently integrates with seven different types of POS systems, including MICROS used by Friday’s, for an encrypted exchange of credit card information.

“Between Tabbedout and MICROS, we were able to deliver some technology for TGI Friday’s that complements their brand strategy,” Tabbedout’s vice president of sales Kevin McKeand said in an interview with VentureBeat. “The mobile app and the mobile payment functionality is a core part of their new marketing strategy.”

TGI Friday’s, McKeand said, is intent on improving the customer’s dining experience “within the four walls.” The company, which owns many of its stores but also has franchise owners, is looking to grab guests with great service and believes that the mobile applications will free up servers and bartenders to communicate and engage with diners more.

Founded in 2009, Tabbedout has raised roughly $6.5 million in funding and has an especially strong presence in Portland, Seattle, Dallas, Houston, and Austin. Phoenix, Denver, and Washington D.C. are the startup’s next three target markets, McKeand said. With the addition of Friday’s, Tabbedout mobile payments are accepted at more than 800 locations in the U.S. and Canada.

Friday’s, the app, is available on the App Store and Google Play. Next week, Tabbedout application users can pay using that app at TGI Friday’s locations as well.

Photo credit: soeperbaby/Flickr


Filed under: mobile


O2 Launches Mobile Wallet to Bring the Benefits of Mobile Money to U.K. Customers

venerdì, aprile 27th, 2012

O2 Launches Mobile Wallet to Bring the Benefits of Mobile Money to U.K. Customers O2 Launches Mobile Wallet to Bring the Benefits of Mobile Money to U.K. CustomersIt’s a big day for mobile money in the United Kingdom.

This morning, O2 heralded the launch of O2 Wallet, which is being billed as “a seamless and secure digital wallet service that will deliver the benefits of mobile money to more UK consumers than any other product or service currently available.”

Not surprisingly, all the features you would want or expect from such an offering are included. O2 Wallet, for example, enables consumers to securely transfer money to any UK mobile phone number “as easily as sending a text.”

O2 Wallet also makes shopping much, much easier. A comprehensive barcode and search engine function compares the prices of millions of branded goods from more than 100 online retailers.

“With O2 Wallet,” says James Le Brocq, Managing Director at O2 Money, “it’s easier to transfer money, track expenditure and pay swiftly and securely, all using your mobile. We believe it will transform the way people manage their finances and spend money.”

Additional functionality will soon enable consumers to use O2 Wallet to top-up mobile airtime, and buy train tickets.

“We recognize that security is absolutely key,” Le Brocq adds. “O2 Wallet has been trialled internally for months and has undergone extensive ‘stress-testing’ with security experts. In additional to PINs and passwords, all personal details and financial data are held on remote central servers rather than on the mobile device itself. This, we believe, is the safest and most secure way to deliver mobile payment services.”

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Square now gives merchants next-day access to cash, annual payment processing hits $5B

mercoledì, aprile 25th, 2012

Life just got a bit rosier for merchants using Square’s mobile credit card reader. Merchants will now have access to cash on sales made before 5 p.m. by the next business day — meaning they won’t have to wait several days before getting access to their money, as they would with competitors PayPal Here and Intuit’s GoPayment.

Additionally, the company is now processing $5 billion worth of transactions at an annualized rate, Square chief operating officer Keith Rabois told Bloomberg in an interview. That’s up from a $4 billion per year rate a month ago.

“Sole proprietors and small businesses live and die by their cash flow,” Rabois told Bloomberg. “They don’t have access to capital; banks don’t give them loans. They need to take the money they make today and use it to pay bills, buy things and pay employees the next day, so having access to funds is super-crucial for them.”

While PayPal and Intuit are competing with Square by offering lower transaction fees and integration with other software (like Intuit’s financial suite), Square has an ace card with the promise of next-day payments. It’s a huge leap forward for payment processing, and for cash-strapped small businesses besieged with bill deadlines. For those businesses, this could be the difference between staying in business, or shutting their doors.

Square, coyly, isn’t revealing how it’s managing to move cash to merchants so quickly, due to competitive reasons. I don’t blame the company for keeping this secret — it’s a major feature that its competitors have somehow never figured out. (It’s especially embarrassing for PayPal, since it’s been handling online payments for over a decade.)

As Bloomberg points out, the past method for handling credit card payments through payments processors had several steps that delayed merchant access to cash. Payments were first evaluated for risk exposure, sent to the merchant’s bank, and then sent to a national network (or clearinghouse), before they reached a merchant’s bank account.

Square has released a handy schedule that shows when merchants can expect to see transactions in their bank accounts.

We’ve asked PayPal for comment on Square’s announcement, and will update when we hear back.


Filed under: mobile, VentureBeat


Berg Insight: 30 Million NFC-Enabled Smartphones Shipped in 2011

mercoledì, marzo 28th, 2012

Berg Insight 30 Million NFC Enabled Smartphones Shipped in 2011 Berg Insight: 30 Million NFC Enabled Smartphones Shipped in 2011Just how prevalent are NFC-enabled mobile devices becoming? The latest numbers from Berg Insight reveal that thirty million handsets equipped with Near Field Communications technology were shipped last year.

What’s more, global sales of handsets featuring NFC increased ten-fold over the previous twelve months.

As a result of the past and projected growth in the near future, Berg believes that shipments will reach 700 million units by the end of 2016.

The global rise in smartphone adoption is also driving higher attach rates for other wireless connectivity technologies in handsets including GPS, Bluetooth and WLAN.

“”Even though it will take some time before the stakeholders agree on business models for payment networks, other use cases such as reading tags and easy pairing of devices may well be compelling enough for handset vendors to integrate NFC in mid- and high-end devices already today,” said André Malm, Senior Analyst, Berg Insight.

The NFC technology for short-range wireless point-to-point communication reached a “breakthrough in 2011″ when several leading handset vendors released more than 40 NFC-enabled handsets, Berg Insight reveals in the new report.

To learn more about the study and its findings, click here.

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ViVOtech Gearing Up and Funding Up for Major NFC, mCommerce Push

martedì, marzo 27th, 2012

ViVOtech Gearing Up and Funding Up for Major NFC mCommerce Push ViVOtech Gearing Up and Funding Up for Major NFC, mCommerce PushThis week, ViVOtech, the near field communication (NFC) software and systems company, confirmed their ambitious plan for the near future.

The company announced the first closing of its Series D round of funding, which will bring ViVOtech’s total funding to $96 million since the outfit was founded in 2001.

So what will all the cash be used for? To support ViVOtech’s growing market momentum and drive the rapid expansion of mCommerce worldwide.

The company’s software and Point-of-Sale (POS) technologies are already used by major financial services firms, leading mobile carriers, smartphone OEM’s and online players such as the Google Wallet, and is integrated with Isis mCommerce solutions.

“Companies across the mCommerce ecosystem are racing to capture their share of what is expected to be a massive opportunity,” says Michael “Mick” Mullagh, ViVOtech’s executive chairman. “This is driving strong demand for our software and systems. With this latest financing, we’re armed to extend our leadership position providing the infrastructure needed to deliver on the promise of mCommerce.”

“We’re fortunate to be supported by a stellar group of venture and strategic investors,” added Mullagh. “It’s gratifying to see that, after many years of seeding the NFC reader market, we’re now gaining strong commercial traction with our market-leading Trusted Service Management (TSM), Touch, Marketing and Loyalty software offerings for NFC- and QR code-based mCommerce initiatives.”

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Paypal faces a lot of competition in mobile payments (infographic)

venerdì, marzo 16th, 2012

Excerpt from Visual.ly graphic on mobile payment wars

PayPal announced today that it would be entering the mobile payment market with its own smartphone dongle, PayPal Here.

It’s a triangular widget that plugs into the headphone jack of your phone, similar to the rectangular dongle (pictured above) of prominent mobile payments startup Square.

PayPal’s entrance into this market is no surprise, but the Dunder Mifflin-like nature of today’s press conference was a little awkward. Still, as VentureBeat contributor Rocky Agrawal explains, PayPal Here is a credible competitor to Square.

Still there are already many ways for merchants to take your money on the go:

  • wireless point-of-sale systems like Square (you swipe your card through a card reader attached to the merchant’s smartphone or tablet),
  • contactless payment systems like Google Wallet and Isis (your smartphone becomes your wallet, and you tap it on the merchant’s reader),
  • carrier billing solutions like Zong (you give the merchant your phone number, and the charge appears on your cell phone bill)
  • online wallets like Paypal, Google Checkout, and Amazon Payments (you pay for stuff by clicking on a button on a website).

Check out this infographic from Visual.ly for an explanation of each of these approaches to mobile payments.

Infographic from Visual.ly showing a variety of facts about mobile payments


Filed under: mobile


How PayPal Here aims to be a full-service financial product for small businesses

giovedì, marzo 15th, 2012

PayPal’s Here mobile payments products represent a direct assault on Square, and the company adds in a few features that would take some effort for Square to replicate.

The new product also provides some invoicing and tracking functionality that could be good enough for some businesses that were considering Intuit’s Quickbooks software.

Among the significant features from the Here launch:

  • Immediate funds availability for credit card and PayPal transactions. Once a business has processed a transaction, the money can be spent using PayPal’s debit card or withdrawn from an ATM. For cash-strapped businesses, this could be important. Square isn’t exactly a slouch at making money available — money from a transaction I processed on a Saturday night was available at my bank the following Monday — but it’s not immediate.
  • Ability to accept checks. Businesses can take a picture of a check and deposit it into their PayPal account. (This money is not immediately available.) This has an added benefit in that businesses may choose to use PayPal in place of a bank account. That means lower credit card fees for PayPal because that money can be re-spent without hitting the credit card networks.
  • International availability. PayPal Here will also be available in Canada, Hong Kong and Australia.

Here’s fee structure is essentially the same as Square’s. Instead of Square’s 2.75 percent, Here charges 2.7 percent. That difference isn’t meaningful. If a business has enough volume that they’re worried about a 5-basis point difference, they shouldn’t be using either Square or Here.

In the presentation, PayPal claimed that if a business uses the PayPal debit card, which offers 1 percent cash back, that the effective rate is 1.7 percent. That’s a ridiculous claim. I take money that I get from Square and deposit it in my bank account. Then I use my Starwood American Express card to spend it. I value those points at 2.5 percent. So using PayPal’s logic, my effective rate on Square is 0.25 percent.

Like Square, PayPal charges 3.5 percent plus 15 cents per transaction for credit card sales where the number is manually entered. PayPal also offers the option of taking a picture of a credit card, but those transactions are charged at the higher rate. This is mostly a gimmick — image recognition technology isn’t good enough for this to be more efficient than typing in a number.

PayPal also competes with Square’s Card Case product, allowing consumers to use the PayPal app to let a business know they are approaching and just pay by name and picture. Unlike Square, PayPal will not be immediately offering an iPad app.

PayPal didn’t announce a distribution strategy, but eBay CEO John Donahoe told CNBC’s Jon Fortt that the goal is to use word-of-mouth among “millions” of existing PayPal merchants. By contrast, Square is available at more than 11,000 retail locations in the U.S., including Apple stores, Target and Best Buy.

“Neighborhood retail locations are an important resource for small business owners to discover new opportunities and technologies that can help them grow,” said Katie Baynes, a spokeswoman for Square. “About 85 percent of the U.S. population is no more than 15 minutes away from a Square card reader.”

Here addresses two concerns about Square’s hardware: encryption and spinning. As I noted yesterday, other competitors have made an issue of the fact that Square’s reader doesn’t encrypt credit card numbers. The reader isn’t compliant with the industry’s PCI standards, but more secure than Square. I don’t consider it a meaningful risk, but that might spook some. The bigger concern is that Square’s reader spins, making it difficult to get a swipe to go through. Sometimes, I have to swipe 7 or 8 times before it takes. (Square has a video on its site explaining how to swipe properly.)

The biggest — and most important — unknown is how elegant the user interface is. That’s an area where Square excels.

But based on the initial announcement, PayPal Here is a credible product that plays to PayPal’s strengths. The good news for Square is that PayPal didn’t go for the jugular and compete aggressively on fees.


Filed under: mobile, VentureBeat


PayPal Rocks Mobile Payment World By Confirming New Service

giovedì, marzo 15th, 2012

PayPal Rocks Mobile Payment World By Confirming New Service 300x200 PayPal Rocks Mobile Payment World By Confirming New ServiceAs MMW reported Wednesday, PayPal was rumored to be working on a new mobile payment device to challenge the likes of Square and Intuit – makers of the two most dominant dongles in the mobile payments space today.

On Thursday, the rumor became reality as PayPal, the payments service giant owned by eBay, confirmed its next venture, one that puts the venerable digital titan squarely in Square’s mobile payments territory.

“PayPal Here” is the new service and its reaching the United States, Canada, Australia and Hong Kong beginning today. The service is billed as the world’s first global mobile payments solution that allows small businesses to accept almost any form of payment.

The new service includes a free app and fully encrypted thumb-sized card reader, which turns any iPhone, and soon Android smartphone, into a mobile payment solution. With PayPal Here, small businesses, service providers and casual sellers can send invoices or accept debit and credit cards, checks and PayPal using one simple product.

“Helping small businesses grow and accept payments has been in PayPal’s DNA since its inception 14 years ago,” said PayPal’s vice president of mobile, David Marcus. “We’ve heard small businesses loud and clear. They don’t want to miss sales opportunities because they can’t accept the payment type that their customers want to use. They want quick access to their money, a reliable card reader, and one transparent, low fee to process these payments. I’m thrilled to launch PayPal Here because we’ve been able to bring all of these key features together into a product that’s so simple to use.”

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f35ee168038b3f1283c2b608d7de765a PayPal Rocks Mobile Payment World By Confirming New Service PayPal Rocks Mobile Payment World By Confirming New Service

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Boku lands $35M from Telefonica, NEA to expand mobile payments

giovedì, marzo 15th, 2012

The mobile payments gold rush continues. Boku, a company best known for its carrier payment offering, announced today that it has received an additional $35 million investment led by Telefonica Digital and New Enterprise Associates (NEA).

The funds will be used to expand Boku Accounts, the company’s white-label platform to let any carrier offer point-of-sale mobile payments on smartphones, as well as to expand the team, infrastructure, and the company’s global presence. The news comes at the same time PayPal is unveiling its new mobile payments hardware to compete with Square. PayPal’s announcement is expected later today.

“Payments is an industry that requires scale, and in the three years since Boku launched we’ve grown rapidly to partner with more than 250 mobile network operators, processing transactions in 67 countries around the world,” Boku CEO Mark Britto said in a statement today.

In addition to its investment, Telefonica has signed a global payments partnership with Boku, which will see the carrier pushing mobile payments to merchants and consumers alike.

San Francisco, Calif.-based Boku has raised a total of $75 million in funding across several rounds. This most recent round also received participation from existing investors Andreessen Horowitz, Benchmark Capital, DAG Venture, Index Ventures, and Khosla Ventures.

VB Mobile SummitVentureBeat is holding its second annual MobileSummit this April 2-3 in Sausalito, Calif. The invitation-only event will debate the five key business and technology challenges facing the mobile industry today, and participants — 180 mobile executives, investors, and policymakers — will develop concrete, actionable solutions that will shape the future of themobile industry. You can find out more at our Mobile Summit site.


Filed under: mobile, VentureBeat


What I’ll be looking for in a Square competitor

giovedì, marzo 15th, 2012

PayPal is set to launch a competitor to media darling Square at an event in San Francisco scheduled for tomorrow, according to GigaOm and Bloomberg.

Mobile payment enabler Square has set the benchmark for small business applications in terms of design elegance and simplicity. Here’s what I’ll be looking for in the PayPal announcement:

Hardware

It will be interesting to see if PayPal goes with simple hardware similar to Square’s iconic dongle or tries for a PCI-compliant solution. Such devices are significantly more expensive, require power and are more secure. Competitor VeriFone tried to make a big deal out of the Square dongle’s security risks last year with an open letter claiming, “In less than an hour, any reasonably skilled programmer can write an application that will “skim” – or steal – a consumer’s financial and personal information right off the card utilizing an easily obtained Square card reader.”

I consider VeriFone’s attempt just a lot of fearmongering. All the information you need to process a credit card transaction is printed on the piece of plastic you give to your waiter, so by comparison the Square dongle’s security risk is trivial.

User interface

As much as people like to focus on the Square dongle, the real brilliance of the service is in the elegance and simplicity of the user interface of the applications. There are some tweaks that I’d make to it, but on the whole it does what it needs to do quickly and efficiently.

That’s the exact opposite of PayPal’s online interfaces. Every time I complete a PayPal checkout, I think I hear a user-interface designer crying. The design isn’t geared toward completing your task as fast as possible; it’s about avoiding the traps that PayPal puts in place to get you to do what it wants. The only flow that I’ve seen that is consistently worse is United’s online check in, which tries to get you to buy premium seats, extra bonus miles, priority access, etc.

Time to task completion is even more important in retail point of sale than online, because a customer may be holding up the line.

Fees

One of the big potential advantages that PayPal has is that it has money on file. Many of PayPal’s more than 100 million active users keep money in their PayPal accounts. Because this doesn’t have to hit the credit card or debit card networks (which Square’s service currently does), PayPal could offer such transactions for free to merchants. As of December 31, PayPal had more than $4 billion on file, according to eBay’s annual report.

But according to the Bloomberg report, PayPal isn’t going to be that aggressive. Citing unnamed sources, Bloomberg says that PayPal will charge 2.70%, compared with the 2.75% that Square is charging. For this market, a 5 basis point difference is irrelevant.

Distribution

Getting the reader into hands of small businesses is going to be critical. Square readers can be purchased at more than 11,000 retail locations, including Apple stores, UPS stores, Best Buy, and Target. These are all places small businesses frequent.

International

PayPal is available in 190 markets and supports 25 currencies. If PayPal launches in markets other than the U.S., that’s a big deal.

With as many users as PayPal has, it would be foolish to dismiss them, despite Square’s early lead in the offline payments space. Square’s currently at a run rate of $4 billion in transactions annually. In 2011, PayPal processed more than $118 billion in transactions.

If I were at PayPal and trying to compete aggressively with Square, here’s what I’d do:

  • Eliminate the transaction fee on all transactions under $25. This would be a significant differentiator. Low dollar value transactions are a money-loser for Square; they could be free for PayPal.
  • Rebate a substantial portion of fees for money-on-file transactions.
  • Seed the existing 100 million+ customer base with special offers to use PayPal at small offline retailers, much as American Express has done.
  • Focus on consumer- and merchant-friendliness in the application and customer service.

Rocky Agrawal is an analyst focused on the intersection of local, social, and mobile. He is a principal analyst at reDesign mobile. Previously, he launched local and mobile products for Microsoft and AOL. He blogs at http://blog.agrawals.org and tweets at @rakeshlobster.


Filed under: mobile, VentureBeat