Will HCE revive NFC mobile payments? No.

18 03 2014

As of late there has been a lot of press coverage regarding HCE (Host Card Emulation), which in a nutshell allows devices to make NFC based mobile payments without needing the mobile operators secure element on the device. Both VISA and MasterCard are backing this new approach, in the hope that finally, they can kick start mobile payment offering with NFC, effectively locking merchants back into the card schemes for mobile. Google is also heavily behind HCE, because they need a way of getting their Wallet distributed on actual devices and networks. Google has already had a rocky time with NFC, supporting it, then ditching it, only to now attempt to bring it back to their offering through HCE.

There are many companies pinning their hopes to HCE, touting their solutions and the promise of mobile payments. But is HCE really the saviour of NFC based mobile payments, or is it simply the same old issues dressed up in a new party frock?

 

Secure NFC in the cloud

Effectively HCE allows secure details to be stored in the cloud. This makes a lot of sense if you want to bypass the mobile operators and effectively quash their mobile payment offerings (ISIS in the USA and WEAVE here in the UK). But does it actually add any value for the consumer or for the merchant? Is there actually any real difference? The answer is pretty much no.

If you are using the solution in its pure form, then your phone (no matter how it gets details, from the cloud or a secure element on the device) will broadcast card scheme data to the merchant’s terminal. No matter what that data is, it is being broadcast and is data that is used to complete the payment. This is actually very powerful if you are looking for mass distribution, potentially. I say potentially because though there are businesses accepting NFC contactless payments, they are still small in their numbers. In addition, the merchant still has to opt into accepting contactless payments – and it is worth noting that contactless payments in pure card form are not the same as contactless payments using your mobile phone. In many cases the “handshake” is different requiring businesses to invest yet again in contactless for mobile phone. Do we really think SME owners will continue to invest in technology for zero benefit to their business?

So does HCE make any difference here? No…

 

Availability

HCE and NFC are only available on Android based devices (and not all of them). Though Windows Phone 8 supports NFC, it is locked very much into the Secure Elements, so no HCE support there. If we then look at the most successful mobile smartphone out there (iPhone), we should note no NFC or HCE support (and it doesn’t look like there ever will be). So with this in mind, you are only available to customers on 1 of the top 3 mobile platforms. Though many will say that Android has the lion share in the mobile world, it’s worth noting that they are a distant third in their share regarding mobile web being used. This indicates that the majority of Android users are not embracing all the features on their smartphone, and as such, these probably are the same users that will not look to be early adopters of any form of mobile payment.

Essentially, the consumer base that could potentially look to HCE and NFC payments is quite limited.

 

The customer experience

Many articles will talk about adding value into the mobile phone payment option, but when we do this, any distribution advantages you may have due to card schemes and contactless being accepted vanishes. You may ask why, but the fact is that the acquiring banks (the people who actually operate those contactless card devices) will not be accepting data regarding a discount, or loyalty scheme. To be blunt, they simply can’t accept that data as it’s meaningless to VISA, MasterCard, the Acquiring bank and the customers bank. So in order to accept that data, the mobile payment provider needs to sign the merchant up to their particular version of mobile payments, in order for them to enjoy any added value. Therefore the argument for NFC as an open loop environment using card scheme rails doesn’t fly.

So what does HCE bring my customers in terms of experience over what they have currently with a card. The answer is nothing, unless I buy into a particular vision of HCE by a particular company, and if I am going to do that, I may as well look at alternative payment solutions, that save my business money.

 

Payment processing costs

Do these decrease with HCE? Nope, the poor old merchant is still paying full wack for their card processing, and maybe in some situations more. They will be paying for more expensive NFC based infrastructure on a monthly basis too, so mobile is now costing businesses more to accept. That’s simply not good news for any business owner.

 

HCE a game changer? Nope…

To make mobile attractive to businesses it must be cheaper for businesses to run, maintain and it must bring some added value to their business. It also needs to be available to the vast majority of my customers, so that means available to the top 3 mobile operating systems (Android, iOS, Windows Phone). HCE simply doesn’t stack up on any of these basic business needs. It’s more expensive and provides no added value.

Mobile will no doubt be a game changer in the payments world, but it will not be changed by solutions that look to the same old rails dressed up in a pretty new mobile dress. It will be companies that offer real added value through mobile services, and companies that deliver savings back to businesses with large reductions in payment processing fees.

So if you are a small business, look to see what alternative payment solutions out there provide you with the added value and services you want to move your company forward, helping you increase sales and increase your profitability? It’s an exciting time, and a chance for businesses to break away from the old and embrace the new more productive world.

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The cost of plastic

7 02 2014

We live in a digital age, and yet all our online and over the phone payments are carried out based on a very non-digital technology – payment cards. Essentially cards are protected by you needing to know a few numbers off the face of the card, and 3 additional security numbers on the back. If you aren’t the only one who knows those numbers, then you aren’t the only one limited to spending on that card.  Yes, there are many new security measures online, such as 3d secure and verified by blah, and yes, there are endless reams of PCI compliancy rules that businesses should follow. But at the end of the day, a bunch of numbers is hardly the easiest thing to secure.

 

The end of cards?

Cards have served us well for a long time now. But the cost of issuing a piece of plastic with some numbers on, isn’t cheap (on such a large scale). The costs of trying to protect those numbers for banks and mainly businesses are always on the increase, and this always results on businesses being charged more to accept a card based payment. What’s worse is, that when that card isn’t physically present, such as online or over the phone (especially when online sales are increasing) the poor old merchant is charged even more for the pleasure of accepting their customer’s payment.

What we must remember is that fraud doesn’t cost your issuing bank much at all. Rather it is the merchant who sold the goods that loses out financially, and they will lose out on the value of whatever they sold. For small businesses that’s quite a risk, especially when they branch out onto the web. I have known many small businesses to be stung like this, loosing thousands in revenue and of course lost product (a double hit for them).

Now we have a number of alternative payment systems and services starting to become available, some in the form of virtual currencies, mobile payments, different payment schemes and processes online (ala PayPal) and these are starting to become quite disruptive to the traditional card schemes and banking business. With alternative payment options growing in popularity, could this possible be the beginning of the end of the card? I say the beginning, as cards are heavily entrenched in our daily lives, and to date, only Starbucks IMHO has shown that consumers and businesses are starting to really make a choice when making a payment – and opting for something other than their card.

 

Digital payments for a digital age

I am a strong believer that when the technology landscape changes drastically, you need to embrace it fully. When cards were first becoming popular, there was no internet, no over the phone payments nor over the phone banking. But the internet is here, and cards haven’t changed at all. The infrastructure hasn’t changed, all that has changed is that software developers let us type in our card details so that the card can be identified. Not much evolution or embracing of the new digital age there.

Payment schemes need to be designed with their current landscape in mind, payments need to be designed for the digital world, which with mobile devices now blends seamlessly at times into the real world. This is what we have done at CloudZync. We have designed a payment scheme for the digital world that can be used online and out there in the real world, day to day via your personal mobile device.

For me, this is just the beginning of looking at how we transact, how commerce takes place, how customer relationships are forged in the real and digital worlds, and it’s an exciting time to be in this space. CloudZync is pushing the boundaries of what we expect from financial products, commerce, customer relationships and in terms of technology making our lives easier. Technology making my life easier and safer as a consumer, and the same applies to businesses. Technology making sales, transactions, experiences and relationships easier to manage and more profitable. To achieve these goals, we must always challenge what has gone before and that includes cards and banks…





Tech looking for a business problem to solve

4 02 2014

There are some wonderful new technologies coming to the market at an alarming pace it seems, some technology really helps a particular market, perhaps speeding up processes, changing our experiences, even having quite an impact on our lives. Then we have numerous technology that seems to be made, simply because it can be.

Just in 2014 alone (already and it’s the start of February) I’ve been exposed to a number of new technologies that are technically impressive, but they don’t have a problem to solve. They don’t have a real way of impacting our lives as consumers, or as businesses. Technology for technology sake is a phrase that I find myself uttering quite often, and none more so than when I look at the world of mobile and of-course, mobile payments.

 

My friend, NFC

NFC is a technology that has been around for years now. I remember it in an early Nokia phone (dumb phone not a smartphone) and it’s never really delivered anything in terms of impact on my life. I will be honest, most phones I have owned have supported NFC, and yet I have never used the technology for anything more than showing that it works.

Don’t get me wrong, there are some wonderful applications of NFC, but it’s a technology that doesn’t really solve any real issue, no matter what it is used for. Sure, it’s great for sharing data quickly, perhaps triggering music from my phone to play on a set of speakers when I rest my phone on them, great, but has that changed much compared to playing via Bluetooth? No, not really, if anything, NFC is more limiting than my Bluetooth pairing of speakers to my phone.

When we look at mobile payments, I still can’t shake the feeling that it’s a great technology trying to fit into this space, even though it doesn’t quite fit.

At the end of the day, NFC feels like a great technology, but for the sake of technology. NFC doesn’t change the game.

 

Bluetooth beacons

The latest mobile and mobile payment tech to raise its head is beacons. Apple launch their iBeacon and PayPal have released information on their own Beacon project coming in 2015 (possibly). Both are quite neat, and pretty cool technology, they demonstrate well, and when you read about them you do think “wow – that could be cool”. However, the actual use of the technology again doesn’t solve anything, or remove anything from a process (deals or payments).

Even if a Beacon checks me into the store, I still need to have my mobile phone app (maybe even open), I still need to pay at the till using a payment account (maybe PayPal which isn’t exactly cheap or merchant friendly) and I still need an additional way of assigning that transaction to me the customer. With that in mind, is it worth me having Bluetooth switched on and having my phone pinging off beacons?

Even if PayPal manage all this, has it changed my life as a consumer? Probably not. Because there is no added value. All I have done is identify myself to a PayPal system that I am in that store, and at the expense of battery life. There is no added value to the merchant nor to the customer, only a technology that demonstrates well. We must remember too the practicality of all this for the consumer, even if all stores supported beacons, how long before I need to charge my phone? Having my phone constantly pinging beacons via Bluetooth is not good for my battery life, or my sense of security as a consumer. So much so, that most people have Bluetooth disabled on their devices by default, rendering the whole proposition pointless.

Apple beacon is a different approach, it’s not focused on payments and you have to open the app as the consumer, giving you a little more control. However again the concept of only providing deals or information through the beacon app or iPhone won’t stop businesses having to show deals visually in the store or online. Has this made life easier for the business, or actually made it harder? After all, a business won’t want to lose those customers who aren’t on the Apple iPhone platform. What about the majority of smartphone users who are on Android? That growing number on Windows Phone? What about the number of people who don’t even have a smartphone? Do we really expect a store to not provide all those offers exclusively to their iPhone customers? No, so life isn’t easier for the merchant, it’s more complex. No matter the merits of beacons, it still isn’t a game changer for businesses or consumers.

 

Wrapping up someone else’s tech

This is a particular bug bear of mine. There are lots of technologies now out there, and proposed solutions (especially in the mobile payments space) that don’t actually deliver anything at all. Rather, they wrap up someone else’s tech / app, and all they do is pass information to it to semi streamline a process. Now I don’t have anything wrong with streamlining processes in this way, after all, I spent 14 years as a TA doing this for corporates. But does that make my own technology massively valuable? No, it really doesn’t….I don’t want to point fingers at all, but if you again, look at the mobile payment space you will see a fair few of these examples.

 

Payments, tech first, solve a problem second

Unfortunately most technology companies at the moment seem to rush to get a technology together, then try to shoe horn it into some business problem or experience that either it doesn’t fit in, or simply doesn’t work for. The mobile payments industry is rife with this, with a multitude of different approaches to payments, all based around technology first, user experience second and practicality for the business and others a distant last.

 

Look at a problem, and then solve it with technology

I must be “old school” when it comes to creating technology. I still like to have a problem to solve, either in terms of a real business need / driver, or an experience we need to get to before I start designing and creating solutions and new technologies. I still maintain that if you want your technology to work it needs to exhibit all of the following 3 points:

  1. Make life easier for you and or your customer
  2. Add value to your current process
  3. Reduce your costs

If your solution doesn’t do all of these potentially for the majority of your customers, then it’s not worth investing in or using.

Shameless plug here, but when you look at mobile payments, Zwallet is the only mobile solution that ticks all three of these points off, and that’s because it’s a technology and solution that looked at real problems, needs, drivers and experiences first.





Zapp mobile payments, great concept or dead idea?

17 01 2014

Zapp has been getting a lot of press coverage these past few days, no doubt to help bolster their fund raising efforts. (Read an article here at Finextra and have a look through the comments made too, very insightful) The company that hopes to deliver mobile payments for UK banks is trying to raise £100m on-top of the £16m funding it has already received to date. But what is Zapp? What will it deliver?

Zapp, great concept or dead end idea?

Zapp, great concept or dead end idea?

We must start with the cold fact that Zapp has not got an actual solution for mobile payments. Zapp has to date delivered nothing in terms or architecture and physical code. With that in mind, everything we read from Zapp is vision based, it’s fluffy and isn’t backed by something tangible like an actual real live working environment. So we must take their comments on what they can deliver with a little pinch of salt, as no one as yet has tried to deliver what they are claiming.

 

The proposition

So let’s now look at the proposition in the wake of Zapp announcing a number of major banks signing up to their solution. When you first read articles or headlines regarding Zapp, you may believe that Zapp has access to your bank account, and that means they can complete payments directly from your bank account for you. The fact is, this is wrong. Zapp does not have direct access to any consumer’s bank account, not ever consumers of those banks that have signed up to the Zapp vision. In addition, Zapp doesn’t have access to faster payments either, again something that many believe they do have. So what do they have that warrants the headlines coming from Zapp….

Well, what they have is an understanding with the signed up banks to be able to send information from their Zapp wallet app to the banks mobile banking app. This information is pretty basic, essentially it’s a reference, an amount and a destination bank account. So in the world of Zapp, you use your Zapp wallet to get a transaction under way, however, in order to actually pay, you are then pushed from your Zapp mobile app into your banks mobile banking application. There you input your PIN for your banks mobile app and then confirm the faster payments transaction that Zapp has set up for you. Complete it in your banks mobile banking app, and then back to the Zapp app you go. It’s also this integration that lets Zapp show you your bank balances in the Zapp app (no direct access to your bank account at all, rather a copy of functionality from Microsoft’s Wallet and Apples Passbook, reading data from other apps).

 

Great concept or dead end idea?

So, is this a winning mobile solution? Should companies like PayPal, Visa, MasterCard, CloudZync be worried. Well the short answer is no. Zapp isn’t offering anything that hasn’t been shown before. Zapp isn’t providing me as a consumer with any incentive to use the app, nor are they providing any incentive to a business to accept Zapp mobile payments. The experience isn’t even one that sounds “cool” for a consumer. Moving between two apps to manually authorise a bank payment is not exactly smooth. But, you can see why the banks they have on board are interested, these are all banks that have no form of P2P transaction apps, nor any foot in the door of the mobile payments industry. Of course they are going to sign up to Zapp, after all the promise is Zapp delivers mobile payments through their own current banking apps. The real proof that Zapp offers nothing new or an experience that consumers will opt for can be seen by looking at Barclays position. Barclays have NOT signed up to Zapp, and you can see why. Why would they, when Zapp is simply a very clunky vision of Barclays own Pingit/buyit app, of which isn’t pie in the sky, is an actual app already out there in the wild with millions of downloads and one that works a lot smoother than the Zapp proposition.

Mobile payments will not take off if we view them as simply an evolution of card payments onto mobile, and this is where Zapp is standing. There is no point for consumers or businesses to invest time and money in an evolution that delivers no improvement for either party. Mobile payments will only succeed when there is incentive and added value to a transaction, and that is why companies like CloudZync and their Zwallet mobile app are light years ahead of the competition. Wrapping other peoples technology to try and make something a little smoother (such as inputting payment information for a faster payments transaction) isn’t visionary and its hardly innovative. When we look at mobile and digital wallets, they need to be innovative, they need to provide real tangible and easily measurable incentives to businesses and consumers to make a conscious effort to use mobile phone as opposed to cards and cash. That’s exactly what Zwallet delivers…

Zapp future

I have no idea what’s ahead for Zapp. I am sure they can deliver the technology to wrap a banks mobile app, it’s hardly rocket science and they aren’t attempting to solve anything that hasn’t been solved already. The question really regarding Zapp is why do they need that size of investment? Do they have anything else planned or is it all marketing, marketing and more marketing money? Who knows.

What I do know is that Zapp is already behind the competition, and has a lot of thinking outside of the box to do if it wants to deliver experiences that get close to its competitors…





Payment Security. Has it been forgotten?

8 11 2013

People may think I’m not being serious with this post title, but I really am. These past few weeks yet more examples of security not being taken seriously in the payments market have emerged. It started with an article I read on Finextra regarding Google bypassing the secure element on an Android phone for NFC based transactions. It’s the launch of HCE (Host Card Emulation).

 

HCE and NFC

I’m not going to go into too many details and technicalities about it, but my own take on the whole situation with HCE, NFC and Google is that Google and the card schemes are changing the rules in which payments are supposed to be made. They are doing this to better fit with their own solutions, and to potentially lock out ventures like ISIS in the US and WEAVE here in the UK and at the risk of security.

There are strict reasons behind PCI compliance and the use of EMV (secured chip and pin to most of us) and it seems that these are now causing issues for Google and others, so instead of looking for real solutions they change the rules. A great take on this can be found on finextra here

 

QR/Barcodes in transactions

These are the choice of many payment solutions out there, including my own companies CloudZync with Zwallet. However, QR and Barcodes are easy to create, especially static ones, so using these for passing payment information has to be taken into consideration, and I would never allow an authorisation of a payment to be made just because a valid code has been scanned. Yet I have witnessed many solutions out there now that do this…

With Zwallet we always make sure the consumer is involved in the authorisation process fully, so we keep intelligence in the process at the cost of 1 second in the transaction process. For me, 1 extra second making a payment is well worth it to aid in security. (I would like to point out that Zwallet transactions are still dramatically quicker than typical card based transactions, even with the added 1 second for security).

 

Security underlying cause for concern?

So what is the underlying cause of security concerns with payments? What really causes so much effort to go into technology a trying to patch security issues or catch fraud post a transaction? The answer is the actual card scheme itself and the infrastructure behind it.

Let’s be real. Cards are amazing. For the last 40 years they have steadily dominated the way in which most of us pay for goods and services. But, has security increased much in that time? A little is the answer. There is a lot more technology backed behind it, but fraud is back on the rise again, so we must ask ourselves why. And the answer is simple, cards were never designed for the digital economy. Everything that we do to utilise the card infrastructure is a cludge, a patch/hack in tech terms. All this technology and security to try and secure something that is very insecure, 16 digits on a card, mixed with two dates and 3 digits on the back.  If we lose control of those details then a fraudster can do whatever they want with our cards, and that’s why so much is invested in fraud detection post a transaction and so much is invested in risk management.

My fear is, while card based transactions using Chip and Pin remain ok, the way we use cards digitally isn’t so secure. Throw into the mix mobile payments and companies actively trying to utilise card details in their solutions to make payments, and holes start to appear. In essence, trying to use technology to secure something that by its nature is not secure causes all sorts of issues. And though great lengths to make things much more secure are possible, the costs behind these rack up.

No matter how you try to secure card details, or to what lengths you go, the fact remains that the infrastructure for cards requires those simple card details, and fraudsters are becoming increasingly intelligent, innovative and capable of getting their hands on those details and using them.

 

The security solution

The only real secure option is to start with a blank sheet of paper for payments and wake up and realise that the digital economy requires payments to be carried out on an infrastructure that is designed for digital transactions from the ground up. It also MUST include more human elements in the process and not just require everything to be automated.

Real intelligence still remains with the consumer and the business. By removing them from the process more and more, we may make the payment process a little quicker, but we increasingly make it less secure. After all, the process of me having to know my PIN to make a payment is far more secure if I have lost my card, compared to just waving my card in front of a reader and making a payment.

These are the reasons behind the security approaches we have at CloudZync, the reasons why we make sure the consumer has to actively be involved in the purchase process and actively have to authorise each and every payment. If we remove them too much, then there are more gaps for fraudsters to exploit.

I’m not saying everything can be 100% secure, it simply can’t, and intelligent innovative fraudsters will always find a way to exploit processes and technology, but we must actively make it as hard as possible, and currently, in the race to stamp authority on possibly the payments method of the future, security seems to be being overlooked…That is a great concern of mine, and should be a great concern for each and every consumer out there and business owner…





September, a big tech month…

4 09 2013

Ever since Apple started making big announcements in September a few years back, it’s become increasingly popular to be the month of big tech news. Samsung copied Apple a few years back and started making their announcements just a few days before Apple, and often September is the month we also get some form of announcement from Google and or Microsoft. September 2013 has been no different.

 

Samsung announcements

These have been pretty odd affairs in recent years, and to be honest, I’m not sure they have been that successful. This year we are talking wearable technology and specifically smart watches. Are these the next big thing? Hmmm. I’m not entirely sure, if technology on your wrist was really going to take off, I think my Casio watch with calculator was quite a “killer” back in the late 80s. I heard a great quote today in relation to wearable technology, “people only wear something that looks good”. That means it needs to look equally as good as something like a Rolex, Tag or Omega watch before it really really has appeal. Let’s face it, no matter what the best looking tech company in the world has to offer (which is Apple not Samsung), I’m convinced tech on my wrist won’t get better looking than that produced by brands like Omega.

Obviously there will be a market for wearable technology, I just don’t feel it will be something the masses adopt, especially when we think how much bigger phones are getting (not smaller). Wearable technology like a watch will not replace my smart phone, so why would I have it?

If you are thinking about Google glasses for example, then again, this kind of tech has other pitfalls. For one, if you already wear glasses I’m not sure the tech even works for you. If you, like me, hate having things distract your eye, then again the tech is not going to be for you. Throw on top of that the fact the glasses don’t look great (and there is a massive market in laser eye corrective surgery so we don’t have to wear glasses) I start to think a lot of this is tech for tech sake…

IMHO, wearable tech may have a place, but its not for the masses and no one should be seeing this as the future and the replacement of the phone, not at least a fair few generations (try 15)…

 

Apple’s big do…

Every September the online media get excited, and I read so much about what will Apple deliver, and what we expect from Apple, and oh, this is what we think this invitation means…I am still amazed at how much coverage a simple invitation gets, and that’s before anything has been announced. Only last night I caught some tech news on the TV and the breaking news was the Apple invitation that had been sent out with colour spots on it! I mean, really, is this massive tech news, especially compared to what really was the ground breaking story of the month, Microsoft purchasing Nokia!

That being said, we are expecting some new form factor iPhone 5s. Now I am not sure how much new tech, if any the new iPhone will have, but it no doubt will be received with a lot of excitement, that’s what brand Apple receives no matter what these days. I personally don’t think we will be seeing anything major in this latest version of the iPhone 5, some colour options, maybe a little more configuration, but there wasn’t any real innovation with the iOS 7 refresh, so don’t expect anything on the hardware front if the OS didn’t offer anything new.

 

Microsoft and Nokia

No matter what Apple or anyone does in September 2013, the big news must be that of Microsoft purchasing Nokia’s devices division. This is a massive shift away from Microsoft’s original vision, that Microsoft delivers software only, not hardware. This shift may have been on the cards, and for some time – since the Nokia announcing it would go all in with Windows Phone – I’ve been stating it’s only a matter of time before Microsoft buy Nokia.  I think further clues should have been taken from the Surface tablet release. Surface may not be doing as well as Microsoft would like, but it’s been a bold move by them, and is basically a statement that “Microsoft no longer has confidence in OEMs to deliver the hardware and the design to best show off Windows technology”. In many ways I have to agree with this. It should also have been clear that Microsoft would need a devices arm after Google purchased Motorola. That makes Google, Microsoft and Apple now all in the mobile phone devices game, which must be a concern for makers like HTC and Samsung, since they have the hardware but rely on software from other sources. Perhaps they will be moving into the software game (I hope not, but you never know).

It’s also not a bad time for Microsoft to really get aggressive with mobile. It’s had some good news as of late, Windows 8 has gained some traction and now commands a greater market share than Mac OS X, and Windows Phone has moved into 3rd regarding smart phones.

Though Microsoft are now well and truly in the hardware game, I firmly believe that Microsoft will continue to license its software and that Windows Phone will be available to OEMs such as Samsung, HTC and many more, because after all, software is still Microsoft’s core business. What it means though is Microsoft can now ensure there are devices in the mobile and tablet market places that can compete in terms of design, performance and build quality with those delivered by Apple. By ensuring this level of design, it forces OEMs to deliver the same, or surpass Microsoft’s efforts, or simply become irrelevant.

Many people may claim Microsoft is a dying company, that they haven’t done anything in years, blah blah blah and that Nokia is dead and should have gone with Android. To me, these are statements from people who don’t understand the two companies, don’t understand business and require glasses when it comes to looking into the future. These are probably the same people who said Apple is dead only months before the launch of the iPod.

Microsoft is still a massive powerhouse, and don’t think that Windows is a poor operating system. Just spend a few days being totally open minded and use Windows 8, on a PC, tablet or phone. The OS is far from perfect, but it really makes sense. The user experience is very slick, the capabilities of the OS is far more powerful than any of its competitors and Microsoft provides development tools that are simply second to none. Throw into the mix its Windows Azure operating system, its dominance in the business world and you can start to see that Microsoft may know after all how to become popular with the consumer again. If you don’t believe me actually try the OS with a fresh mind. On a mobile phone, the experience is second to none it really is, but I appreciate the look and feel is not for everyone, and nor should it be or ever be. Mobile phones are personal devices, and as such an element of personal taste will always come into play. The big problems for Windows 8, be it on the phone or tablet, is the lack of relevant apps in the market place. Size of the app store means nothing, most apps available on all the platforms are really a waste of time, but what kills Microsoft is currently the lack of “expected” apps. I really believe Microsoft has got to get paying some companies to bring their apps to Windows 8, be it phone or tablet. Only then, once consumers know they are getting at least the same apps on a Windows device will they make the switch…

 

So, Microsoft and Nokia, a single OS with no compromises across all devices, on hardware that is reliable, looks good, performs well and is innovative, that’s visionary, that’s big thinking. Now all Microsoft has to do is win back love from developers (which its more than capable of doing) and it really is back in business with the consumer…Oh, and controlling your own hardware surely will be a big tick in the additional profits column (if all goes well, if not a rather big drain).





Mag-strip to EMV chip and pin

23 08 2013

I’ve seen few articles on countries now looking to finally move away from mag-strip debit and credit cards, ditching signatures and opting for EMV chip and pin cards. This is the most recent I’ve read, “Bank of Israel sets deadline for EMV switch”. But what makes me chuckle a little is that EMV is really old hat now, so to start moving to EMV in the next 3 years seems a little out dated already.

In a recent article on Finextra, Bank of Israel sets a deadline for moving from mag-strip to EMV, banks and card schemes have been given 3 and half years to make that switch. In that time, surely many more of us smart phone users will be looking to mobile transactions, so the move seems just like the move from CD to MiniDisc – one with a very short lifespan and rather large investment…(Keep in mind the numbers of smart phone users as opposed to dumb phone users is increasing daily)

 

Card schemes are big

Yes, most of us have a card and therefore card schemes will be with us for a very, very long time. But moving forward, the role cards play in our lives will only get smaller and smaller. With this in mind, is it worth making the investments to move to EMV? Why not now at this late stage stick with what you have and await a mobile revolution?

 

Go mobile

If I were the head of a large bank in this situation I obviously would be looking at migrating to EMV because I am being forced to. If I wasn’t being forced to, I think I would be tempted to leave things as they are. After all the switch will not be cheap, it will also involve lots of customer relations with businesses and no doubt (just like in the UK) waves of consumers complaining about using a PIN (though we seem to love Chip and Pin now).

But my main focus I believe would be looking at pure mobile schemes, looking at what’s out there and how my customers will want to access and spend funds via their mobile devices. (Obviously I would be looking at CloudZync’s infrastructure and technology 😉 but maybe I am very biased on this)…

 

CD to mini-disc to MP3

Currently updating a card scheme, be it to EMV or containing LCD displays in a card, or pairing cards to Bluetooth apps on phones seems, well, very pointless. Many of us believe the physical card will play a smaller role in our future lives, so why keep investing in it? After all, would you as an IT company keep developing and spending money on solutions that had a shelf life of only a few years? Or would you be looking at a longer game plan?

Maybe I’m being harsh on “mini-disc” here, at least Sony were not that aware of the pending doom just a few years down the line with MP3 players (especially the iPod). They were taken by surprise the uptake and demand in MP3 and as such, mini-disc (though a great invention) died a quick death. Here with cards, it seems we have already foreseen their death, and yet we simply ignore it and plough on forward….curious….