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Best of 2013-14
Mobile POS
email: editor@paymentsconsulting.com
Contents
Introduction .......................................................................................... 4
Chapter 1: Statistics .............................................................................. 6
UK mPOS Attitudes and Adoption ....................................................................................................... 7
Visa Europe Predicts SMEs' mPOS Usage to Rocket in 2014 .................................................... 9
MPOS Tracker February 2014 ............................................................................................................. 10
2013 LexisNexis True Cost of Mobile Fraud .................................................................................. 11
December 2013 MPOS Tracker .......................................................................................................... 13
2014 Payment Tech Trends ................................................................................................................. 14
Mobile POS Gaining Traction in 2014............................................................................................... 15
10 Product Innovations to Watch in 2014 ..................................................................................... 16
November 2013 MPOS Tracker .......................................................................................................... 17
The MPOS Impact Shifting the Balance of Power........................................................................ 18
MasterCard MPRI Mobile Payments Readiness Index ................................................................ 20
Survey: Retail Adoption of Multichannel Technology ................................................................ 22
Updated Mobile POS Ecosystem ........................................................................................................ 24
BBVA Outlook and SumUP Mobile POS Stake............................................................................... 25
Conclusions........................................................................................ 117
Our Services ...................................................................................... 119
FREE Subscription to Payments Innovation Daily ..................................................................... 120
Running Campaigns with Payments Innovation Daily ............................................................. 121
Web Research Services ....................................................................................................................... 123
Sponsor Industry Trackers................................................................................................................. 124
Branded Newsletter Services ............................................................................................................ 125
Introduction
The Best of Mobile POS 2013-14 looks at the rampant scramble for market share worldwide and
the proliferation of product and service solutions targeting new merchant payment segments. This
is the second in a series of topic compilation reports highlighting news stories and online content
covered in the FREE Payments Innovation Daily newsletters.
This report contains more than 120 pages of feature coverage from the past year including
published statistics, product ecosystems, adoption surveys, compliance issues, fraud reports,
strategic partnerships and countless new product releases. We define Mobile POS as merchant
Point-Of-Sale systems enabled on a device that facilitates payments over a mobile network,
including dedicated high end 3G terminals and lower end dongle and bluetooth devices that work
with mobile phones.
Feature content is broadly categorised according to our editorial judgement and articles are
arranged in chronological order of publication. All articles include links to source content online.
Any representations are entirely attributable to source material and do not reflect the views of
Payments Innovation Daily. Please advise us if you discover inactive links. If you have any
concerns please contact our editorial team.
Future Publications
Payments Innovation Daily will be releasing a number of topic compilation reports with all the best
content covered during the 2013-14 financial year. These reports are expected to achieve wide
circulation beyond our current subscriber base. There are 20 different topics as listed.
Card Networks
Merchant Acquiring
Mobile POS
Mobile Payments
Mobile Commerce
Mobile Banking
P2P and Remittances
Loyalty and Rewards
Data Analytics
B2B Transactions
Online Payments
ATMs
Payments Infrastructure
Faster Payments
Regulation
Virtual Currency (Available Now)
Cross Border Transactions
Innovation
Financial Inclusion
If you are interested in placing advertisements or contributing feature content in this report or any
of our next topic compilation reports contact our editorial team.
Chapter 1:
Statistics
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The study reveals that 48% of microbusinesses surveyed miss sales or face
delayed settlement, with one in ten saying
they miss sales because they dont have the
required payment capability. More than half
of respondents believe multi-channel
payments will be important in the future.
The paper shows that 45% of microbusinesses identify cash flow as the number
one barrier to growth. 19% of respondents
believe mPOS will help with cash flow and
17% expect it to remove payment issues. In
addition 38% of respondents say they will
adopt mPOS in the near future as long as
their concerns are addressed.
Colin Swain, Global Head of Product at Kalixa Group, said: Micro-businesses are missing
sales and face delayed settlement, with many citing current payment technology as the culprit
and mobile as part of the solution. Yet market adoption simply isnt there.
Nick Lane, Chief Analyst at mobilesquared, said: It is clear from the research that education is
key to addressing micro-business concerns around settlement speed, security and
connectivity, but also to educate micro businesses and their customers that the calculator-like
device is as trustworthy and safe as every other POS device.
Read more at Realwire, The Paypers or download the report (PDF).
Payments Innovation Daily covered The MPOS Impact The Shifting Balance of Power,
and Apple Now Retailing WorldPay Zinc mPOS in UK.
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Caroline Drolet, Head of Mobile Point-of-Sale at Visa Europe said: Small businesses have been
traditionally reluctant to embrace card payments but across Europe that is changing. We continue
to play a key role in mPOSs development, ensuring that industry standards and requirements are
met and solutions are secure before they are deployed in the market.
Read more at Visa or download the researchs results (PDF)
Payments Innovation Daily covered Ingenico iSMP mPOS in the Nordics, ROAM's New
MPOS Reader Supports EMV Chip & PIN, iZettle mPOS for Eurostar On-board Train
Upgrades, and The MPOS Impact The Shifting Balance of Power.
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The report provides updates for seven existing players in the mPOS space, including Ezetap,
iZettle, I Love Velvet, PayAnywhere, and Payleven, and updates on three 3 suppliers: ROAM,
Adyen and Infinite Peripherals.
For further reading try PYMNTS or download the February 2014 MPOS Tracker.
Payments Innovation Daily covered December 2013 and November 2013 MPOS
Trackers and The MPOS Impact, by Mobey Forum forecasting MPOS terminals to increase from
4.5 million to 38 million from 2011 to 2017.
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2013 LexisNexis
True Cost of Mobile Fraud
According to the "2013 LexisNexis
True Cost of Fraud Mobile" study,
fraud threats are impacting merchants
to the tune of USD 283 for every USD
100 of actual fraud losses via the
mobile channel.
The study conducted by LexisNexis
and Javelin Strategy & Research
highlights key fraud issues effecting
mobile retailers, and articulates ways to
combat retail fraud. The research
shows that nearly one in 10 merchants
accepted mobile payments in 2013
and 25 percent expect to begin
accepting mobile payments in 2014.
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The largest growth channel is mPOS (mobile point-of-sale) hardware. Seven percent of
merchants used mPOS in 2013 after no merchants reported using it in 2012.
Fraudulent transactions were nearly 60% credit card versus 23% debit cards.
Mobile browsers more common and apps for accepting mobile payments.
Mobile merchants face more identity theft than all other merchants.
Mobile merchants selling digital goods can limit their fraud costs by thoroughly
authenticating card-not-present transactions through mobile devices.
Merchants should track fraudulent activities by each channel they offer. Currently, only
48% of mobile merchants reported that they track fraud by payment channel.
Maintain open communications with financial institutions and other mobile merchants to
better understand the evolving nature of fraud threats and solutions.
Dennis Becker, Vice President, Corporate Markets and Identity Management Solutions,
LexisNexis, said: "Mobile payment options and point-of-sale hardware are providing more
business opportunities for small merchants. Despite the surge in retailers using mobile payments
to conduct business, we've found in our study the unfortunate correlation between the size of the
business and the impact of mobile fraud on their business."
For further reading try LexisNexis or download the report.
Payments Innovation Daily covered a prior LexisNexis report, the Harris Pole: Mobile
Payments Face Security Concerns and Mobile Payments Prediction for 2014.
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Dont pick a player pick a platform. As no one mPOS solution fits each category,
picking a mobile commerce platform that can enable a variety of functions and features is
the best way for SMBs to further their business.
The incredible shrinking mPOS market has begun. What will be interesting to watch is
whether the mPOS market truly consolidates or whether it simply enables new players to
emerge.
mPOS is defining how consumers and merchants interact. mPOS enables digital
payments but it also enables merchants to enable a number of other capabilities that add
value to the consumer/merchant interaction.
The report also provides updates for eight existing players in the mPOS space: iZettle, I Love
Velvet, PayAnywhere, Payleven, Square, PayPal Here, YESPay and GoPago and three
suppliers: ROAM, Anywhere Commerce and Infinite Peripherals.
For further reading try PYMNTS.com or download the tracker.
Payments Innovation Daily previously covered the November 2013 MPOS Tracker.
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Sixty-nine percent of respondents see the increased consumer use of mobile technology in
everyday life as the single-most influential factor in future payment technology trends.
Read more at All News Au or download the Report from Infinitive Peripherals.
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Mobile POS
Gaining Traction in 2014
Despite the explosive growth the mobile point-of-sale (mPOS) sector has seen in the past few
years, there was one overarching message from the industry heading into 2014: mPOS has only
just begun to show its potential.
Ken Paull, CEO of ROAM announced: "The past has been more niche markets, and smaller tiers
of the market. Now that we are moving upmarket it will be more apparent to the general consumer
base that these systems are going into the mainstream, mid-tiers and larger tiers of the retail
market."
Chip and PIN is expected to become a big factor in global companies. The technology requires a
much greater investment, not only for the hardware itself, but the integration. It is going to raise
the bar in 2014 for how many players can compete in the mPOS space.
For further reading try PYMNTS.com
Payments Innovation Daily recently covered Global Payments & 1O1O Launch mPOS in Hong
Kong and iZettle mPOS for Eurostar On-board Train Upgrades.
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10 Product
Innovations to Watch in 2014
eWeek have released a short slide show of top
technologies to watch in 2014 in which mobile
payments and related products feature
prominently.
According to eWeek US start-up Square is
currently leading the way in mobile payments and
will likely go public in 2014, putting its mPOS
reader and other technologies front and center.
Bitcoin digital currency was also a hot-button topic in 2013 and is expected to continue into 2014.
However, there has been a lot of concern among currency regulators and law enforcement
agencies about Bitcoin's stability and its use in illicit markets.
The eWeek technology watch list includes:
Google Glass
Game Consoles
4K TVs
A New Era of Desktops
Encrypted Digital Currency
Amazon Prime Air
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In this update, new players such as Move and Pay, POGO and Cardflight are added. While
updated information is noted for ten players: ROAM, Anywhere Commerce, Clip, Infinite
Peripherals, JUSP, NCR Silver, Payleven, Square, Spire/Thales and Vantiv.
The mPOS market is in the midst of rapid expansion, forecast by Mobey Forum to reach 46
percent market penetration by 2017, up from just 17 percent in 2012. However, according to this
November report, the number of MPOS businesses is likely to diminish in 2014 as competition
heats up and consumers demand more sophisticated design, features and functionality.
The report indicates: "There will have to be some consolidation as players that only provide
dongles and card processing will be overtaken by those with card accepting capabilities as well as
specific solutions that address a vertical markets needs. These vertical markets wont be large
enough to support multiple players given thin margins and the relatively small size of many of
these vertical markets."
Read more at PYMNTS, or you can download the full report here. Also available online,
the October 2013 MPOS Tracker report and the 2012 report.
Payments Innovation Daily recently covered The MPOS Impact, by Mobey Forum forecasting
MPOS terminals to increase from 4.5 million to 38 million from 2011 to 2017.
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Nicolas Dinh, a Mobey Forum MPOS member and mobile business leader for MasterCard in
Canada, said: In 2014 we are likely to see alliances form where merchants integrate valueadded services and launch low-energy Bluetooth-enabled payment zones. The mainstream
adoption of smart wearables, such as the [Google] glasses and smart watches is also around
the corner, which is likely to simplify mobile payment acceptance even further. Banks have a
real opportunity to align their services with these innovations, but they must adopt a strong
mindset if they are to maintain their current competitive position in payments and extract value
from the market at the same time.
For further reading try bobsguide, or you can download the part 2 white paper.
You can also download part 1, "The MPOS Breakthrough: How the Power of Mobile has
Disrupted Payments" (Registration required for part 1)
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MasterCard MPRI
Mobile Payments Readiness Index
MasterCard have launched an interactive
web site covering findings from a datadriven survey of the global mobile
payments landscape.
The survey gauges the preparedness and
receptivity of 34 countries for mobile
payments, and draws on a variety of
public and proprietary research and data.
The data has been aggregated into a
MasterCard Mobile Payments Readiness
Index (MPRI) which measures readiness
to replace cards on a scale of 0 to 100,
with a score of 60 being considered a
critical inflection point. Average country
score is 33.2 with Singapore ranking the
highest at 45.6.
The index draws on data which has been further grouped into infrastructure, regulation, financial
services, environment (economy), mobile commerce clusters (industry co-operation), and
consumer readiness.
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For further reading click through to MasterCard splash page. The site includes downloadable
reports by country with data split by score metric. If you have difficulty opening individual reports,
try downloading a zipped pack of selected files.
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While only 26 percent of retailers have mobile POS systems deployed today, more than half of
the survey respondents said they plan to implement the technology by 2018.
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Brick and mortar channel will continue to attract the most marketing investment
Infogroup's Targeting Solutions president, Don Patrick commented: "The adoption of mobile POS
is a great way to capture valuable customer information, but our survey revealed that retailers
struggle with using the data that they already have."
For a more detailed summary try Infogroup or you can download the report (Free Registration
Required).
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There are also updates for Adyen, Cube, iZettle, PayPal Here and Groupon and two suppliers,
ROAM and AnywhereCommerce. The study indicates vendors are increasingly open to
accommodating third party capabilities for front and back office operations.
Consumer survey results showed a positive reception to mPOS allowing payments anywhere
within a store. This included the perception of the retailer as being tech-savvy and with half of
respondents believing cash registers will not be required in the future.
You can collect the report here, or for further reading click through to PYMNTS.
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The latest investment round included investors American Express, Groupon and Tengelmann
Ventures. The amount of BBVA's investment undisclosed but is part of a total of more than $20
million announced in May.
Proceeds of the funds will contribute toward SumUp's growth with a focus on Spanish speaking
countries - particularly South America, Spain and Portugal where BBVA is strong; as well as help
extend the brand in Europe. SumUp also recently announced expansion into Russia.
What distinguishes it from US equivalent Square is that the hardware is able to take chipped
cards, however this announcement follows hot on the heels of Banco Santander's investment in
competitor iZettle. See BBVA's presentation here and SumUp's demo at Finovate is
available here.
Separately in a just released Q2 outlook, BBVA chief economist Nathaniel Karp warns of the
double edged sword of mobile innovation - while it will make banks more productive it will also
boost non-bank competitors.
"Mobile banking will increase the productivity of the
industry as banks will have more information and ways to
efficiently target users; however, these technologies are
also bringing more competitors: highly sophisticated
platforms with innovative business models and very low
operating costs. Ultimately, the biggest winner will be the
consumer."
Download BBVA Research Q2 Economic Analysis: "6.
A discussion on the consumers and mobile financial
services survey of 2013" pp 24-27 (PDF)
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Chapter 2:
Incumbent Suppliers
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Payments Innovation Daily previously covered PayPal Here Chip Card Reader, Free Mintegrate
SDK for Mobile POS, and Square's Australian launch plans.
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Bill Nelson, executive vice president of Global Product Management for VeriFone announced:
The VX 690 achieves this goal while providing 3G connectivity that is critical in many markets
where 2G networks are transitioning to 3G. The user experience of the terminal combined with its
robustness, flexibility, and technical communication capabilities will not only enable payments
today, it will enable commerce tomorrow.
The VX 690 with its simple, handheld design, is expected to be available in late 2014.
Read more at Business Wire or VeriFone's Press Releases.
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Jose Luis Arias, Managing Director at Ingenico Northern Europe and Iberia commented: "This
deal highlights Ingenico's continuing aim of working with partners to deliver fully integrated mobile
payment solutions to businesses. More customers are looking for payment solutions that are not
only secure, but also provide them with innovative solutions to help improve the efficiency of their
sales.
Lisa Forsstrm, Sales Manager for PayEx in Sweden, said: PayEx is the first and, so far, the only
supplier of this kind of up-to-date payment solution in the Nordic market. We help our customers
to deliver new and higher service levels to their customers.
Read more at Mobile Europe, Finextra, Ingenico or download iSMP Datasheets.
Payments Innovation Daily covered Ingenico Partners Ingogo mPOS for Australian
Taxis, Ingenico Ships Half a Million POS Terminals in Indonesia and Crdit Agricole
Selects Ingenico 3G MPOS.
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Payments Innovation Daily covered VeriFone mPOS deals including Omni-channel for UGG
Australia, NAB mPOS with Reckon, and Lilitab Self Service iPad POS Kiosk.
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Crdit Agricole
Selects Ingenico 3G MPOS
French Bank Crdit Agricole has chosen Ingenico,
a payment solutions provider, to roll out 3G mobile
and contactless payment terminals to merchants of
Regional Banks and LCL network.
Crdit Agricole is the first banking group to offer
Ingenicos compact iWL250 3G mobile payment
terminal in France.
Yves Perrachon, Crdit Agricoles Cards & Payments Director of Operations said: Combining
mobility, availability, usability and security, the iWL250 is the solution we wanted to offer our
merchant clients. Contactless technology enhances the payment experience and adapts to new
types of consumer behaviour.
David Gebhardt, the managing director of Ingenico France said: Ingenico is very much in tune
with behavioural developments related to new payment methods. We support these changes by
offering comprehensive secure solutions that combine payment terminals and dedicated
applications. Our 3G offering met Crdit Agricoles expectations: it is a solution that goes above
and beyond traditional payment scenarios.
Read more at Ingenico.
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Chapter 3:
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Payments Innovation Daily covered Apple Mobile Payments Intentions, and Apple Patents
iWallet Payments System.
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Electrolux Technicians
Adopting Mint Mobile POS
Electrolux is launching a mobile payments solution for their
service technicians in Australia using the Mintegrate platform
from Mint Wireless. The service starts from June 2014.
The solution will equip Electrolux service technicians with a
secure bank-grade Chip and PIN card reading device. The
terminal will allow the technicians to accept card payments
on their Android smartphones and automatically reconcile
transactions with Electroluxs backend systems.
Alex Teoh, CEO of Mint Wireless, said: "Mint Wireless eliminates the complexities of reconciling
payments from customers and improves the cash flow of businesses as payments are credited to
their account on the next business day. Customers can also be assured that their card payments
are being taken on a secure and compliant device, similar to any device a consumer would use in
a retail environment."
David Lee, Electrolux senior corporate controller, said: "We have designed our appliances with
our customers in mind and we are now working with Mint Wireless to make the lives of our
customers easier by providing them with a hassle free option to pay wherever they are."
Read more at ARN, Ferret or Australian Manufacturing.
Payments Innovation Daily covered Free Mintegrate SDK for Mobile POS in Australia, MYOB
Launches PayDirect Mobile POS for SMEs, Square integrates with New Zealand's
Xero and Square Challenges Aussie Banks.
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VeriFone Omni-channel
Solution for UGG Australia
Deckers Outdoors Corporation have
implemented VeriFones GlobalBay
Retailing solution at 40 of their Australian
UGG footwear retail outlets.
The solution enables store associates to
accept payments from the sales floor, with
iPad mini integrated 'PAYware' POS
terminals, bringing the power of omnichannel to the aisle to better engage
consumers and fulfill their requirements.
Gerard Marceda, VP of North America Retail for Deckers, said: We are not a technology
company, but we need to utilize technology to enhance the customers engagement with the UGG
brand. Our implementation of GlobalBay, which we call Infinite UGG, enables our associates to
have a deeper, more meaningful interaction with customers
Jeff Wakefield, VP of Business Development and Strategic Initiatives for VeriFone, said: With
VeriFone GlobalBay Retailing, sales associates not only have an opportunity to save the sale,
but to also leverage mobile technology to provide product details, images and relevant information
anywhere in the store
Read more at VeriFone.
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Payments Innovation Daily recently covered Global Payments EMV certified MPOS product in
Hong Kong. See also PYMNTS latest mPOS Tracker.
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Situation Sthlom produces a magazine sold by homeless people similar to the Big Issue in the
Australia and the UK. The initiative follows a one month trial with 5 sellers. The phones and card
readers are kept and charged at Situation Sthlms main offices, and are collected each day when
sellers pick up their magazines.
iZettle chief executive Jacob de Geer said it was extremely well received. All the phones were
returned safely and are still in use."
According to de Greer, Sweden is moving closer to a "cashless society" where barely anyone
below the age of 40 carries cash. The banks have done a great job with the card infrastructure
so that it is so robust, secure and trusted, that people dont really mind where they use their cards
these days with the chip.
iZettle released its first mobile payment solution in 2011 and has rolled out to nine markets
including seven in Europe, as well as Mexico and Brazil in South America. The UK is one of
iZettles strongest growth markets with thousands of card readers and accounts being set up
every month.
For further reading try The Guardian or Fin Extra.
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Ingenico Australia Managing Director John Tait said: "We are thrilled to be partnering with Ingogo.
The Ingenico secure payment solution provides a simple interface to expedite the payment in the
fastest possible way with the acceptance of contactless, NFC phones and wallets. We are proud
to support Ingogo, as they expand their operations nationally and globally"
The product launch follows a 30 day pilot with 250 cab drivers who processed $1 million in cab
fares. ANZ Bank has been the acquiring partner for the initiative.
Ingogo is one of several mobile hail-a-taxi services in Australia, including Uber and goCatch. For
further reading on the Ingenico partnership try the Wall Street Journal. ZD Net and The
Australian also have recent coverage. In other news Ingogo was announced the winner of a
start-up competition held at the conclusion of CeBIT Future of Payments 2013.
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PCN Interview
Point of Pay on HOME EFTPOS
Rod Tasker, Associate, Payments Consulting Network interviews Michael Haines, Head of Sales
and Marketing from Point of Pay Pty Ltd who reveals how merchants can use HOME EFTPOS a
physically secure device designed for home use to reduce bank fees and eliminate fraudulent
chargebacks for internet sales.
Point of Pay is a Melbourne-based company with an impressive pedigree in EFTPOS terminal
design and development. Their devices have passed the rigorous security testing required for
Australian PIN processing, are EMV compliant, and support many communications
protocols. Point of Pay has further developed PoP Net, a sophisticated EFTPOS switching service
to facilitate rapid deployment of their secure devices.
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Chapter 4:
U.S. Market
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Payments Innovation Daily covered Amazon Integrates Twitter with #AmazonCart, Amazon
Kindle POS, Amazon and DoubleBeam Split GoPago Assets, and Amazon Launches 'Login
and Pay'.
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Amazon Kindle
Based Merchant POS System
According to the Wall Street Journal, Amazon plans to offer brick-and-mortar retailers a checkout
system that uses Kindle tablets as soon as this summer, although plans remain fluid and the
project might be delayed, altered or cancelled.
According to the report Amazon could provide merchants Kindle tablets and credit-card readers at
a low price point and offer other services, such as website development and data analysis. This
follows on from moves by Amazon last year to acquire GoPago technology and engineers, in a
deal with DoubleBeam.
Richard Crone, chief executive of Crone Consulting, a payments advisory firm, said: "The game of
mobile payments is going to be won or lost at the physical checkout, that's where nearly all of
commerce is done today ... At the end of the day, a merchant wants to make a sale, to drive up
business. And if Amazon or anyone else can help them do that, that's tough to turn away."
Amazon holds credit-card information from more than 230 million users, exceeding PayPal's
142.6 million.
For further reading try Wall Street Journal or Tech Crunch.
Payments Innovation Daily recently covered the Amazon Acquisition of Gopago, asset split
with DoubleBeam, Amazon's Login and Pay and Coins Virtual Currency.
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Read more at The Wall Street Journal, Tech Crunch or CNBC video report.
Payments Innovation Daily covered Square Integrates with Xero in NZ, Square Market
Accepts Bitcoin Payments, Square Checkout at Whole Foods Market, Square
Challenges Aussie Banks and Square Considering 2014 IPO.
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AnywhereCommerce
MPOS for Microsoft Surface
AnywhereCommerce, a global payments
technology provider, announced they have
joined the "Microsoft Designed for
Surface" third party development program.
Under this alliance, Microsoft will integrate
AnywhereCommerces mobile point of
sale (mPOS) solutions into Microsofts
Surface for retailers.
Mitchell Cobrin, founder and chief executive officer for AnywhereCommerce, said: The
integration of our mPOS solutions offerings into the Surface platform will help ensure that
Microsoft customers can fully leverage the growing interest that both consumers and merchants
are conveying for mobile commerce capabilities.
Cyril Belikoff, director, Microsoft Surface, said: Microsoft is very pleased to welcome
AnywhereCommerce to the Designed for Surface program, and to continue our relationship in
providing best-of-breed mobile commerce solutions for our customers.
Read more at Retail Solutions Online.
Payments Innovation Daily recently covered Mobile POS expectations for 2014.
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PayAnywhere
Partner with MasterCard
MasterCard and PayAnywhere have formed a partnership to advance the ease and accessibility
of mPOS solutions. Under the agreement MasterCards Truaxis loyalty reward platform will be
integrated into PayAnywhere. This will give smaller retailers the ability to "offer create and
manage" targeted offers through the platform.
Marc Gardner, the CEO of PayAnywhere said: MasterCard has long been a driver of innovation
in the payments space and through this distribution agreement I expect we will truly move the
needle, driving understanding and adoption of this technology that will undoubtedly change the
face of retail as we know it.
Stephen Carnevale, senior vice president of MasterCard said: "This is the latest example of how
greater convenience is being delivered through merchants of all sizes to MasterCard cardholders
when they shop.
Read more at examiner.com.
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According to Jesse Dorogusker, Square's head of hardware, one of the biggest sources of failure
for the current reader is related to the internal wiring. The new version of the reader is designed to
reduce the chances of dysfunction and enhance swiping accuracy.
Square's updated credit card reader is available now from the company's website and will be
hitting over 30,000 retail stores next year. The current model will be completely phased out by the
end of the first quarter of next year.
Read more at CNet or The Verge.
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Payments Innovation Daily have recently covered the PayPal Digital Gifts Store Launch, and
KFC Fast Track Mobile Wallet Enabling PayPal.
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ROAM G5X
New Mag Stripe Mobile POS
ROAM, a mobile commerce platform
provider, has launched the G5X secure
mobile card reader, a next-generation
hardware offering for the U.S. It is the first
magnetic stripe mobile card reader in the
world to obtain Visa Ready certification for
secure payment acceptance.
This new device can be installed as part of
ROAMs mobile point of sale (mPOS)
solution or integrated with an existing
mobile payment application.
Ken Paull, CEO of ROAM said: The G5X is the culmination of many months of development that
incorporate the very latest security features and to ensure compatibility with the widest possible
range of mobile devices. Were dedicated to providing our customers with innovative, future-proof
mPOS solutions that comply with all of the major payment standards used worldwide.
Read more at Business Wire.
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The report helps merchants to understand advantages and disadvantages of each payment
innovation and their potential effects on the traditional payments landscape.
Randy Vanderhoof, executive director of the Smart Card Alliance said "As the industry progresses
with secure EMV payments and new approaches that leverage mobile device technology,
merchants faced with infrastructure changes and POS system upgrades must develop their
strategy for deploying new technologies in-store."
For further reading try Smart Card Alliance or CNBC, or download the report.
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Payments Innovation Daily have recently covered the launch of Square Cash, Square's text
based P2P payments product for online funds transfer via mobile or PC.
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Payments Innovation Daily covered the PCI DSS v3.0 Release, ISO Penalty Fees Pushing PCI
Compliance, and PCI DSS Compliant P2P Encryption Hardware.
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Chapter 5:
European Market
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SumUp's card reader PIN+ will accept all major debit and credit cards, including Visa, VPAY,
MasterCard and Maestro. Transactions will be charged at 1.95% in the UK with no monthly or per
transaction fees. The PIN+ device is going on sale in Poland and Switzerland for 79 and will arrive
in the UK, Germany, Italy and Spain over the next few weeks.
SumUp also claims that they are the first company in the world to cover the whole payments
process including the Chip & PIN card terminal, Android and iOS mobile apps, and an EMV
payment platform. Most of MPOS companies such as PayPal, iZettle, Payleven or Worldpay do not
develop their own hardware. They all use a device from Miura Systems.
Daniel Klein, CEO, SumUp, says: "No vendor could have supplied us with a Chip & PIN device to
meet our strict criteria for reliability, design and security, along with a user experience that is so
intuitive that even merchants who have never accepted card payments before can start selling
immediately without having to read a manual."
Caroline Drolet, Head of Mobile Point of Sale at Visa Europe, said: SumUp PIN+ is precisely the
type of innovation that is needed to bring secure Chip & PIN mPOS technology to the wider public.
Patricia Bateson, Senior Business Leader at MasterCard, commented: The launch of SumUps
Chip & PIN device will help broaden and transform commerce opportunities for small merchants,
allowing them to grow their business.
For further reading try Finextra, Bdaily or startups.
Payments Innovation Daily covered Infinea BluePad Chip & PIN Readers, PayPal Here Chip
Card Reader in Australia, ROAM's New MPOS Reader Supports EMV Chip & PIN,
and EMVCo's Q4 2013 Worlwide EMV Adoption Statistics.
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Payleven Announces
NFC Enabled Mobile POS
Payleven have announced plans to
launch an Near Field Communication
(NFC) enabled mobile chip and PIN card
reader into the European market in the
second half of 2014. Payleven was the
first company of its kind to release a chip
and PIN card reader, with an upfront fee
of 79 (USD 110) for the device.
The reader connects to the smartphone via Bluetooth and combines mobile chip and PIN
technology with NFC, allowing Payleven customers to accept contactless payments wherever
they are. The new version will be priced at around 100 (USD 139).
Alston Zecha, founder and COO of Payleven, said: NFC definitely has the potential to become
the market standard for contactless payments. However, until now the hurdle for SMEs has been
the huge cost associated with it. By launching our new device we will be offering a disruptive
solution that will help our customers to keep up with cutting edge technology, making their
business even more efficient with NFC.
Read more at Telecompaper, Mobile Entertainment, Gigaom, Finextra, Mobile Marketing
Magazine or Payleven.
Payments Innovation Daily covered Bi-directional NFC Enables POS in Asia Pacific.
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Robin Foale, Managing Director of Business Banking at Santander UK said: "This offer enables
us to give our business customers an even lower cost solution that will help make payment
processing easier and ultimately help their business to flourish and grow."
Jens Munch, iZettle UK MD announced: "We are thrilled to be able to partner with forwardthinking banks like Santander who recognise the significance and importance of empowering
SMEs who, after all, are the lifeblood of our economy."
For further reading try Mobile Payments Today, Finextra, PYMNTS, Yankee
Group, Santander or iZettle.
Payments Innovation Daily covered iZettle's iOS Payments SDK, Mobile POS for Homeless,
and for Eurostar On-board Train.
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Visa Europe
Mobile Payments Partnerships
Visa has doubled the availability of mobile payment services across Europe in the past 12
months, partnering with players across both the Mobile and Payments industries in several
markets across Europe.
Some highlights of the last twelve months from Visa Europe include:
Visa Europe director of mobile, Mary Carol Harris said: "Today across Europe consumers have
access to a wide range of mobile services. We've worked alongside an incredible set of partners
to double the availability of mobile payment services across Europe."
Christian Wirtz, Vodafone Group mCommerce Director, said: "We are delighted to see mobile
payments gaining momentum across Europe and we are excited to see what the future holds for
our partnership with Visa to put mobile payments services in the hands of our customers."
For further reading try Finextra or Visa Europes News.
Payments Innovation Daily covered VISA Europe 2013 Annual Report, V.me in
Australia, PayWave achieve 1 Million Transactions in New Zealand.
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Compliant with standards (PCI PTS 3.1 with SRED, EMV Level 1 & 2, Visa Ready).
Connects with tablets, smartphones and other phones via Bluetooth or audio jack.
Backlit display, EMV PIN pad, magnetic stripe, smart card, and NFC reader.
Ken Paull, CEO of ROAM, said: With the launch of our RP750x chip & PIN solution, were now
covering all of the bases of global mobile payment acceptance for new mPOS players. Launching
the ROAMmcm 5 payments engine in January laid the groundwork for supporting international
mPOS deployments, and the RP750x is the latest piece of the puzzle enabling EMV mobile card
acceptance across the globe.
Read more at Business Wire, ROAM or download product sheet.
Payments Innovation Daily covered various ROAM's products include G5X New Mag Stripe
Mobile POS and Mobile Commerce Manager.
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Taxi 24/7 CEO Zeryab Cheema said: "Customers increasingly use our app to book their journeys
and the recent addition of a payment option thanks to the iZettle SDK has really helped boost
customer satisfaction and repeat business."
For further reading try iZettle, Tech Crunch or Finextra.
Payments Innovation Daily also covered iZettle mPOS for Eurostar On-board Train
Upgrades and iZettle mPOS for Homeless Publication 'Situation Sthlom'.
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Emerge Mobile's mPOS solution consists of a card acceptance platform, web portal, native
smartphone merchant applications and a hardware adapter that is attached to a smartphone. The
company said its system is the first fully South African designed, engineered and manufactured
end-to-end mPOS system to achieve this level of international security certification.
Matt Putman, Emerge Mobile's managing director, said: "We are positioning ourselves in the
international market in two ways. Firstly we can white-label our solution to look and feel like our
acquiring client's brand, after which we provide services to maintain and upgrade the platform on
an ongoing basis. Secondly we can enable clients, through joint ventures or consultancy services,
to launch their own new consumer-focused mPOS brand into the market."
Payments Innovation Daily recently covered Mobile POS Gaining Traction in 2014.
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Infinea BluePad
Chip and PIN Readers
Infinite Peripherals (IPC) have introduced
the Infinea BluePad, a Chip and PIN mobile
payment solution compatible with iOS and
Android. The device includes PIN entry,
smart card and magnetic stripe readers and
uses Bluetooth to pair with smartphones or
other companion devices to facilitate
payment transactions.
The Infinea BluePad can operate either as a
stand-alone mobile device or as a
companion to IPCs mobile peripheral
devices, including the Linea Pro and Infinea
Tab, which work with Apples iPod touch,
iPhone and iPad.
Bluepad is available in the US, Canada, Europe and some Latin American countries. A Near Field
Communication (NFC) version will be available in 2014.
For further reading try Business Wire and Infinite Peripherals
Payments Innovation Daily recently covered Global Payments EMV certified MPOS product in
Hong Kong. See also PYMNTS latest mPOS Tracker.
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Orange Cash: Just released in France with Visa PayWave, a mobile wallet product using NFC for
payments and to exchange money between two parties, leveraging their Orange Money mobile
remittance service which is already available in some African countries.
Paiement Pro: Launching in France, a mobile POS device directed towards small or individual
business to receive payments anywhere.
Ma Ville dans ma Poche: Location based services using artificial intelligence and big data to
match merchant offers to targeted consumers who share an interest and are in the vicinity.
Otherwise booking tables at restaurants or using NFC to tag advertisements.
Connected Health Center: Making customers medical history available anywhere online via a
sim card based security layer in combination with a doctors medical card.
Connected Home: Leveraging existing set top box user base for further smart home initiatives,
initially starting with surveillance, intrusion detection, and web video monitoring.
Orange is opening up its network to third parties with industry partnerships, invitations to
developers, and an incubator program, based on its Orange Fab project in the US, which is now
being rolled out in Europe starting with France.
Telcos are well positioned to deliver such innovation with high level security though the sim card,
their monetisation model around the service and not the content, and their huge network reach.
Stephane Richard said: "We enjoy many advantages: we embody mobility in a world where the
smartphone has a central place in our lives, on the other hand, we have an element essential to
the security of transactions the SIM card, as sure as the chip in our credit card."
Read more at NFC World, Rude Baguette or the Orange Press Release. You can also watch
the full 85 minute replay. Note you can toggle to English on the Orange website (check top right).
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The product uses a smart phone for payments collection and streamlining epayments and is
targeted at small business such as self-employed professionals.
The system requires downloading an application to the smartphone which communicates with a
small card reader with PIN pad provided by Comercia Global Payments.
Click here for further reading.
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PayPal Here
Launches Chip & PIN Mobile POS
Paypal has released its Paypal Here
Mobile POS Chip and PIN reader in
the UK which is selling for 99 per
unit. The unit is purchased after
downloading their mobile payment app
and communicates with the phone via
Bluetooth.
For domestic transactions Paypal then charges a 2.75% transaction fee for every accepted Chip
and PIN payment, consistent with PayPal Check in, or 3.40% plus 20 pence for mag stripe or
manually keyed transactions.
PayPal Here was launched in the US last year for mag stripe payments only. The US unit is a
thumb-sized reader that plugs into a smartphones headphone jack. A British team was also
deployed to create the Chip & PIN version for the UK and other markets.
Director of mobile merchant services at PayPal UK, Narik Patel, commented "A dedicated team
based in Richmond has been working on PayPal Here for over a year now. It's been entirely
designed to suit the needs of British businesses. SMBs don't want the commitment of monthly
fees and contracts for a card reader but being able to take card payments can make a big
difference to their business"
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Chapter 6:
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CommBank Unveils
Emmy Mobile POS Terminal
Commonwealth Bank of Australia will
unveil Emmy, a mobile POS terminal that
allows small businesses to accept card
payments through tap-and-go contactless
payments as well as encrypted chip and
PIN code. The small, brick-like terminal
will connect to an iPhone via Bluetooth, for
taking payments while out of the offices
and creating invoices.
Capgemini director Phil Gomm, said there were a host of US and other companies likely to
venture into Australia in coming years but they would face continued competition from the major
banks: [Australia] is very attractive to international providers because of the rapid take-up of
handsets weve had, but were historically proven to be very strongly wedded to trusted service
providers, being the four major banks.
Adam Bennett, CBAs executive general manager of local business banking announced: While
this is a hotly contested and ever changing market were very confident this will be market-leading
and provide a complete proposition for small business customers to meet their key day to day
business needs,
Emmy will be available from June at AUD 30 a month, plus a 1.5 per cent commission when
payments on the device exceed AUD 1,500 a month.
Read more at Australian Financial Review.
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Commonwealth Bank spokeswoman Siobhan Quinn said: The launch of our NFC-enabled
CommBank app and PayTag, plus the continued expansion of real-time solutions for merchants,
with Pi, Albert and Leo, are revolutionising the point-of-sale experience ...
Mint Wireless said it was in talks with three of the four big banks to launch a Square-like
smartphone accessory that allows small businesses to accept credit-card payments.
Payments Innovation Daily recently covered Square's Australian Launch, Possible 2014
IPO, NAB, Reckon and Verifone mPOS, and Mint Wireless mPOS plans.
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Square was recently rumoured to be valued at USD 5 billion, having had significant success in the
US where it has become well-known for offering businesses cheap and simple ways to process
electronic payments.
Ms Brooklyn, Squares San Francisco-based director of product communications and marketing
said: It is also about creating the right sort of relationships and making sure that we have all of
the partnerships that we need to make accepting payments really easy, simple and affordable.
Read more at The Australian Financial Review
Payments Innovation Daily previously covered Square 2014 IPO Plans, Mobile Merchant Case,
and the Thinner Card Reader.
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Tappr is currently in negotiations with the big four Australian banks and a few smaller financial
institutions about the final hurdles it will need to overcome to meet PCI and EMV compliance for
the Australian market.
Co-founder and chief executive Brett Hales said: Its an emerging market with a lot of key players
internationally and there is a big reason why no one has jumped in the Australian and Asian
space yet. The big four banks control the space in Australia, and there is a steep set of
regulations and compliance issues around the payment area
Tappr previously raised $420,000 from seed investors and a research and development grant
from the Australian Taxation Office. For further reading try Startup Smart.
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Mint reported revenues of $960,457 for the financial year ended 30 June 2013, up 217%. For
further reading on the share price jump try Pro Active Investors Australia.
Payments Innovation Daily has also covered the Bank of New Zealand deal.
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BNZ launches
PayClip Mobile POS from Mint
The Bank of New Zealand has launched PayClip, a New Zealand-first technology that will enable
small businesses to use their phones to accept credit card payments on the go. Pricing is
expected to include a $10 monthly rental fee and 3.25% transaction fee.
The device is a matchbox-sized gizmo that plugs into the audio jack of most smart devices. An
application allows merchants to accept payments from chip and mag-stripe scheme cards. Early
next year BNZ plans to upgrade the devices with a "dongle" that also accepts eftpos and
contactless payments.
The product was developed by Australia-based Mint Wireless. BNZ is the first, but Mint head of
projects Chris Hawker expects others will follow.
For further reading try stuff.co.nz, Geekzone or Tech Day.
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The platform is modular and scalable allowing integration of card payments across multiple
mobile devices and platforms for developers, small businesses and large corporations. There are
three main components;
Mintegrate, Mint Developers Program: Mint Wireless offers free software developer kits
(SDKs) and Application Programming Interfaces (APIs) for third party integration
partners.
Minterprise, Mint Custom Solutions: Offers a flexible and highly customisable corporate
payments solution from white label to fully branded and customised integration.
Mint mPOS: Australias first card-present payment solution for iOS and Android devices
for merchant acquiring.
The retail offer is supported by partner Bendigo Bank as the merchant acquirer. Enterprise
customers can use alternative acquiring solutions.
Alex Teoh, CEO explained to IT News that Mint is seeking alliances with banks, telcos, airlines,
manufacturers, retailers and ERP software companies, versus the more competitive challenger
approach of Tyro. Last week Tyro revealed a maiden full-year profit of $3.3 million after six years
in the market. For the same period, Mint Wireless posted a $3.41 million loss.
Mint Wireless estimates the value of mPOS transactions in Australia will reach US$7 billion in
2014 and US$20 billion in 2016. According to the Annapolis Consulting Group, the number of
companies using mPOS devices globally will grow to 18 million by 2017, an increase of 225%.
For further reading try CFO World and for further
explanation from Alex Teoh, IT News. The
Australian includes coverage on recent senior
management appointments.
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Business banking: since the March 2013 of the CommBiz online and mobile service,
there have been over 2,000 activations and 36,000 log-ins
Australian mobile payments: the Kaching app now had more than 1 million downloads
and has handled over AU$9 billion in transactions
New Zealand mobile payments: sister bank ASB saw an increase of mobile users by
250%, and mobile apps account for over 50% of its online access
6 years of technology product initiatives rolled out. Credit: 2013 CBA Analyst's Presentation
According to the AFR, CBA's chief executive Ian Narev will now centre on developing new mobile
products. The analyst presentation also showed that looking forward:
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In-store payments: focus is shifting to mPOS, where the "Pi" operating platform has
been launched for developers to integrate into existing POS/inventory systems,
contactless smartphone case "Leo" is currently in rollout, and mobile tablet register
solution 'Albert' pilot will be coming soon.
Branch network: Video conferencing has been rolled out to 1,016 branches in the past 6
months, and will be extended across the network.
Banking Day also highlighted that POS volumes have risen from 700 million in 2003 to 1.2 billion
in 2013 to June, showing that with retail transaction banking results point-of-sale is where the
growth is.
Read the full story on ZDNet and
results analysis on AFR, or go to
CBA's investor's centre for the 2013
earnings release and download the
CEO Analyst Presentation (PDF).
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Mint Wireless
Ready for Australian Merchants
Mint Wireless is now ready to become a merchant acquirer in Australia with their mobile payment
solution MintPay, which includes an app and a 'chip and PIN' card reader that accepts all credit,
debit and eftpos card types - a first for a non-bank player and a real alternative to current
EFTPOS solutions.
Mint made the announcement this week that they have:
Entered into a wholesale services agreement with Bendigo bank where Mint will be able
to set retail merchant service fee rates and earn a recurring margin for Mint originated
transactions
The Mintpay app and hardware communicates with Mint's payment switch to the SPS gateway,
for switching and authorisation, before sending to bank acquirer Bendigo for financial settlement.
Michael O'Shea, Head of Access and Payments at Bendigo Bank stated "We agreed to work
with and certify the Mint mobile payment solution because we saw that Mint and the Bank share
the same vision of providing innovative, meaningful and useful solutions and products to the
business community."
Mint has been in the Europe market since 2012 in partnership with Worldpay (customers include
airline easyJet) and in Malaysia since 2011 where it locked in a US$5 million agreement to deploy
3,000 'mobile airtime' terminals in Malaysia.
Read the official market
announcement on Aspect Huntley
by Mint (ASX: MNW) or press on IT
News and Telecompaper.
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PayPal Ramps Up
Offline Payment Operations
In Australia, PayPal has forgone agreements with Australian banks and telcos, instead busy
working to build partnerships with offline point of sale merchants and partners to capture a share
of the mobile payment space.
"For these types of products to work well you need good merchant density" PayPal's head of
global payments Hill Ferguson told the AFR, who was in Australia this week. Citing Australia's
high (65%) smartphone penetration, he predicts that "its closer to 5 than 10 years" before
physical credit cards become obsolete.
The company announced that they will be in cafes, restaurants and bars nationwide, having
signed up partners mobile take-away ordering site EatNow (with a network of 2,000 restaurants)
and OrderMate hospitality POS provider (with a network of 1,000) according to ZDNet.
PayPal launched APIs in November 2012 and since have been working with POS vendors such
as Kounta, Micros, Island Pacific and Vend to integrate into current and future POS systems.This
contrasts with mobile payment trials in Australia, where to date they are complex profit and data
sharing models between banks and telcos.
According PayPal Australia MD Jeff Clementz, PayPal now has 5 million active Australian
accounts and over 90,000 Australian merchants that accepts its payment service online, offline,
and via mobile devices.
Read more on AFR,
ZDNet, CNet, The
Australian, Technology
Spectator, and the official
release from PayPal.
(image credit: PayPal case study at
Sonoma Bakery).
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Chapter 7:
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Paul Hodges, Executive Vice President, Corporate, Wholesale & International of CSL Limited
said: The new service offers a reliable and hassle-free payment for both merchants and their
customers, supported by our 24/7 customer service and professional consultation to ensure an
easy and pleasant purchase experience."
Konrad Chan, President, North Asia of Global Payments Asia-Pacific Limited commented: As
merchants continue to look for ways to grow their businesses and enhance customer service, this
new mobile payment service, combining Global Payments' world-class card processing expertise
with 1O1O's leading mobile telecommunications network, creates significant value for merchants
to accept card payments and expand sales beyond the conventional retail store environment."
For further reading try PR Newswire.
Payments Innovation Daily recently covered other MPOS products in the Asia Pacific
including Pogo> from First Data, Plug-n-Pay from Softspace, and products from NAB and
Mint Wireless. See also PYMNTS latest mPOS Tracker.
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Payments Innovation Daily also covered Ingenico's deal with Crdit Agricole in France.
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First cab off the rank, taxi services company Sunlight Taxi plans to equip 1,000 of its taxis with the
mPOS devices. The solution will be used in conjunction with their existing Unicablink Android app.
Renzo Christopher Viegas (top right), group deputy chief executive officer and head of consumer
banking at CIMB said: This type of service has become a necessity for businesses and fully
supports Bank Negara Malaysias push into the cashless space. We look forward to great things
from this partnership.
Albern Murty (center), chief marketing officer at DiGi commented: For us, we believe, as our
slogan says, in providing Internet for all, as it is a big driver for Malaysian society.
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Payments Innovation Daily has previously reported on SoftSpace at the Asian ICT Awards and
their international growth plans. Soft Space has deals with Thailands KasikornBank for KMerchant on Mobile service for 50,000 partner merchants across all industries and more recently
Thanachart Bank, with further plans for Australia and NZ.
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Veme E-pay is a combination mobile phone charger and card reader. It is said to be smaller and
thinner than an iPhone 5. The mobile payments processing application will be driven by Lakala,
a leading digital payments service in China.
The product was being promoted at MacWorld Asia 2013. For further reading click here.
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Modernisation Driving
Asian Payments Growth
Some macroeconomic payments industry trends recently updated and released from the Asian
Banker Research team:
China: the number of ATMs rose at a CAGR of 26.4% over the past six years to total
415,600 in 2012, as banks sough to meet customer cash transaction demands and POS
terminals rose from 800,000 in 2006 to 7.1 m in 2012 as bank cards
increased. Databook here.
South Korea: credit cards growth transaction slowed to 3.9% growth or $524.8m in
2012, driven by increased debit card uptake. Databook here.
Cambodia: credit and debit card volume grew at a CAGR of 24.8% to 1.3m in 2012, due
to changing spending patterns and advancements in e-banking. Perspectives here.
Vietnam: the number of POS terminals in Vietnam totalled 104,516 in 2012, and is
expected to reach 250,000 by 2015 under the government's non-cash payments
push. Databook here.
India: debit card volume India totalled 278m in FY2012, growing at a CAGR of 30%
from FY2007, as banks combined savings account openings with debit card
issuance. Credit card transactions in India grew to 19.6m in FY2013, a 10.8% YoY
increase, as banks targeted affluent customer segments. Databook here.
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Chapter 8:
Service Integrations
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Shopify Launch
Integrated Mobile POS
Shopify are now pitching a mobile reader
integrated with a complete POS system,
with revised price point to compete more
closely with Square.
The card reader, which plugs into an iPhone
or iPad headphone jack, uses the Shopify
Mobile app to accept and process credit
cards and sends email receipts to
customers directly.
Adam McNamara, Shopify Vice President of Product said: Todays technology might be card
swipe whereas tomorrows might be mobile wallet, but we guarantee well be very responsive. As
technologies like Internet Banking Payments get rolled out more prevalently and Apple makes
their investments in touchless payments, I expect well quickly follow and do what we can to
smooth that process out as much as possible.
Shopify is also introducing some changes to its retail offerings, with lower transaction rates,
ranging from 2.7% on a Basic Plan, 2.4% on a Professional Plan and 2.15% on an Unlimited
Plan, using POS and the Shopify Mobile payments app and dongle.
Read more at Tech Crunch, Pad Gadget, Mobile Syrup, GigaOM, Shopify or view Demo Clip.
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Square Integrates
with New Zealand's Xero
Mobile credit card acceptance vendor Square announced a new integration with the New Zealand
based cloud accounting software provider Xero. The integration enables customers to link their
Xero and Square accounts and allow transaction data from Squares payments devices to be
integrated with Xero accounting systems.
Xero managing director Chris Ridd announced: One of the reasons that Square is interested in
Xero is the global context of what we are building. There are no firm dates or announcements but
certainly the intention is that Square has global aspirations, as does Xero, so the alignment is
very good.
Peter Karpas, Xero CEO North America, said: With a joint commitment to building beautiful
software solutions that are affordable and accessible to small businesses, Xero is thrilled to be a
part of Squares software partner platform. Like Square, we are always looking at ways of
enhancing our existing tools, with time saving at the heart, so this feels like the perfect
partnership.
Square's strategy is to make its service more useful to merchants, adding frictionless integrations
that could potentially extend its footprint. Square said its Japanese counterpart, Square Japan,
integrated with the accounting software free, enabling a data feed from sales to accounting.
Payments Innovation Daily covered Square Cash Email payments, Square Checkout, IPO
Plans, and Square Acquires Evenly Bill Splitting App.
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MYOB Launches
PayDirect Mobile POS for SMEs
MYOB recently launched their mobile
payments solution PayDirect as a limited
release to early adopters within the Australian
small and medium business community. They
have now also introduced the MYOB PayDirect
card reader that plugs into the audio jack of an
Apple iPhone or Android smartphone.
MYOB PayDirect turns businesses smartphones into quick, easy payments terminals and offers
deep integration with popular cloud accounting solution AccountRight so payments are
automatically entered into clients books. It also enables receipts and invoices to be delivered to
their customers on the spot.
The launch comes as New Zealand based competitor Xero also makes moves into the mobile
POS market in partnership with Square in the US.
MYOB General Manager Connected Services Andrew Birch said: "What Xero has done with
Square is quite different to what we have done with MYOB PayDirect. They allow Square
customers to take a set of transactions and put them into their accounting software, which is what
Intuit already does in the US."
MYOB's CEO Tim Reed comments: the new MYOB PayDirect app enables small business
owners to view and manage cash flow on-the-go. Business owners will also be able to take action
to improve their cash flow by issuing invoices, taking credit card payments and administering
receipts on the spot. Compared to the current process of returning to the office to generate
invoices at the end of the week or month and then waiting 30 days or more to get paid; MYOB is
accelerating the cash cycle dramatically.
Read more at PRwire, Zdnet, The Australian, MYOB or view Demo Clip.
Payments Innovation Daily covered MYOB PayDirect Launch in Australia and NZ.
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Payments Innovation Daily covered Square Plans for Australian Launch, Square's Mobile
Merchant Case and Card Reader
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Working in conjunction with We Are Pop Up, a company which connects brands and businesses
to short-term retail commercial space across Europe, Skyauth will be providing eight pop-up
retailers within the Corio shopping centre in Berlin. Following the initial launch, the solution will be
rolled out to further Corio international shopping centres.
Skyauth developed the mPOS product to be a complete out of the box commerce solution for
small and pop-up retailers with the payment functionality provided through the use of the
CreditCall software development kit.
Sin Bosley, CreditCall's commercial director, said "The contract win by skyauth shows the
strength of choosing a third-party partner to provide payment functionality for markets such as
short-term retail."
Read more at Finextra, Retail Customer Experience, The Paypers, Skyauth website or
download CreditCall mPOS SDK Toolkits.
Payments Innovation Daily covered Free Mintegrate SDK for Mobile POS in
Australia, Amazon Kindle POS and iZettle's iOS Payments SDK.
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Payments Innovation Daily covered Mint Wireless mPOS, MYOB PayDirect, Aussie Bank
reactions to Square launch plans, and NAB, Reckon and Verifone mPOS.
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Payments Innovation Daily covered Aussie Bank reactions to Square launch plans.
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Lavu's iPad POS system delivers payment, business management, and marketing solutions to
those in the restaurant, nightclub, and quick serve industries. Lavu provides support for multiple
major currencies and has 22 prefilled language translation packs.
Lavu can also handle the many different tax setups to meet various countries requirements,
such as varied tax rates on food versus alcohol, and other options involved when taxes are
applied to an order.
Read more at ITBusinessNet, or Lavu.
Payments Innovation Daily has previously covered iZettle mPOS for Eurostar Trains.
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Square Integrated
Mobile Merchant Case
Square has partnered with accessory
manufacturer Griffin Technology announcing
at CES the release of 'Merchant Case +
Square Reader' a case that integrates with
the popular mobile card payment system.
The case has been developed for iPhones.
Square has not yet developed external
accessories or stands for the Android,
although its reader does work.
When connected, the case eliminate swivel and excess strain on iPhones headphone jack. A
groove in the bottom of the case aligns with the Reader to guide the customers card with an
easy, consistent swipe. The card reader can also detach itself from the case and can be stored in
the back of the accessory for easy access.
For further reading try MacRumors, Griffin or TechCrunch.
Payments Innovation Daily recently covered Square's Thinner Card Reader, the 2014 IPO
Speculation and recent acquisition of Evenly Bill Splitting App.
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Aside from experimental applications with smart glasses, the Intuit GoPayment app uses mPOS
payment acceptance solutions integrated with its Quicken, Quickbooks and other products
targeted toward small businesses.
Cindy Osmond (pictured), a senior software engineer at Intuit said that just like when we had to
rethink desktop software for the mobile phone, we must now rethink mobile phone software for
even smaller devices like Google Glass, watches [and] fitness bands.
Other than Intuit, google glass payment concepts have also been developed by RedBottle
Design. RedBottle have developed Glass Pay which enables users to pay for items in-store
using Bitcoins. Payments Innovation Daily have previously reported on the LevelUp Google
Glass merchant POS concept which was noted for release in 2014.
You can watch a video demonstration of Intuits google glass functionality or for further reading
try International Business Times.
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Verifone is supplying the card reader and NAB will provide the merchant accounts for acquiring
transactions. The acceptance device is described as a cradle for the smartphone that can read
both magnetic stripe and chip cards, and support both PIN and sign, while meeting Australian
security standards.
The product is targeted at the mobile worker market, where their research indicates cash only
merchants suffer from negative perceptions and sales abandonment. Other than providing a
means for accepting payments in the field, the technology will also reduce book keeping
administration, including GST calculations, and assist in keeping track of sales data for providing
performance reporting.
The product was presented last Friday at the Reckon partner conference by Reckons strategic
director Daniel Rabie and Nathan Churchward, product manager, eCommerce and mPOS, from
NAB Business Banking. To read a more detailed summary of the presentation try Box Free IT.
In other news National Australia Bank has now released its mobile wallet product NAB Flik, which
will not utilise NFC for merchant payments. For further reading on this release try Business
Insider Australia.
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For businesses with multiple field staff the technology streamlines the workflow by capturing
actions through the mobile interface. This includes confirming payment, storing signatures,
emailing receipts, and updating the workflow systems of the business.
The product is targeted at businesses with delivery or on-site services. Certified linked2pay
gateway connections include: Vantiv, TSYS, Authorize.Net, and First Data. For further reading
about the new GPS features of Linked2Pay, try PR Web.
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Chapter 9:
Readerless mPOS
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Thomas Nitopi, CEO of Fidano said: "With recent enhancements like integrated invoicing and
couponing, Flint is now enabling use cases not available anywhere else in the market, and we
expect that to make it even easier to sell to customers."
Flint co-founder and CEO Greg Goldfarb commented: "ISOs and MSPs serving small businesses
are looking to attract as well as retain customers who now have a range of mobile options that
bypass the traditional merchant services channel ... Flint provides partners with the market's only
all-in-one payment, invoicing and loyalty solution without requiring any hardware distribution."
Read more at Sacramento Bee or Flint Mobile.
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Tantrum Street
Dongle-free MPOS in Dallas
Tantrum Street, a Dallas-based start-up, has developed
Cartwheel Register, a mobile app which enables small
merchants to scan payment cards onto a mobile device
instead of swiping them through a dongle. Cartwheel
Register includes number-recognition technology which
scans the card number without taking a picture of the card or
storing the information on the merchant's tablet or
smartphone.
A free trial of Cartwheel Register was launched in midNovember for 15 small merchants in Dallas. According to
William Cervin, Tantrum Street co-founder and CEO, all the
participants were already using payment acceptance
technologies such as Square, PayPal or traditional POS
integrated card-readers. They will all replace these payment
devices with Cartwheel Register.
Cervin said: "Initially, we will focus on rolling out the app nationwide in the U.S., but we're very
interested in international opportunities, given that we aren't supplying card-swipe hardware.
Obviously, we would need to set up partnerships with foreign acquiring banks."
Cartwheel Register app will only be available for iOS-based devices on the Apple App Store in the
first quarter of 2014. Tantrum Street also plans to develop versions for Android- and Windowsbased devices.
For further reading try Mobile Payments Today.
Payments Innovation Daily recently covered The MPOS Impact, forecasting the number of
MPOS terminals to increase from 4.5 million to 38 million from 2011 to 2017.
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Conclusions
US market players like Square and PayPal have been quick to move in securing a strong foothold
in the worlds largest but less regulated market for mobile POS. Other players in Europe moved
ahead with EMV compliant chip and PIN solutions. Touted as a competitive advantage the
technology didnt prove to be insurmountable as PayPal quickly moved on to release Bluetooth
based Chip and PIN readers in Europe and Australia with Square not far behind them.
Major banks like the Commonwealth Bank in Australia have not been slow to release new mobile
POS products to protect and grow their share of merchant accounts. However there is a real SME
business need for integration and simplification of accounting and inventory systems across card
present and online channels. This appears to be the strategy of challengers like Square in forming
their alliance with New Zealand based accounting solutions innovator Xero.
Larger players like PayPal and Amazon have significant strategic advantages. Besides deep
pockets and network momentum they offer merchants a broader integrated service offering that
will no doubt prove more critical in the longer term than the hardware and compliance barriers.
At the higher end of the merchant spectrum large retailers are exploring the possibilities of arming
retail staff with mobile POS integrated tablets. Franchise businesses are also looking at solutions
to help them manage payments through substantial field staff networks. Advances in integrated
business intelligence and loyalty management are likely to be key differentiators that promise to
lift sales and profitability for early adopters.
The trend toward less complicated hardware also continues with new mobile POS solutions on
the horizon that rely entirely on existing smart phone capabilities without peripheral devices. So
far, incumbent merchant terminal providers like Ingenico and Verifone have stood their ground
releasing competitive mobile phone pairing solutions and higher end dedicated mobile terminals.
In the meantime prior generation tethered devices accumulate in warehouses.
The mobile POS market is expected to see strong continued growth, more sophisticated and
integrated merchant solutions, and further industry consolidation as the dust settles in the coming
year. As the story continues to unfold keep up to date with ongoing coverage in our FREE
Payments Innovation Daily newsletters.
If you have any feedback or you are interested in placing advertisements or contributing feature
content in this report or our next topic compilation reports contact our editorial team.
Regards
Payments Innovation Daily Editorial Team
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