American Express teams up with Verizon Wireless

American Express will be launching its new app called Serve on Verizon phones. This app claims to be the "grease on the wheels" for mobile commerce, allowing multiple functions all from a single device. Serve will allow users to spend, send, and swipe while online, offline, or even mobile with efficient speed. Serve's goal reaches farther than building a strong customer clientele, but to try and eliminate the need and dependence of plastic forms of payments. Serve will also combine the benefits of a Digital Wallet and somewhat of an online-social-network atmosphere. Rather than using a card or having your phone swiped at an EMV terminal, Serve will allow you to punch the information into your device and charge strictly to your account. It also will allow you to transfer between accounts or even split bills with friends and family without the hassle all through email.  Little messages may also be sent with your transactions, depending on how your using the app. Finally serve will be able to analyze your transaction history, and send you special offers that might interest you. If you are interested you can buy it right on the spot if not you can delete the offer.

http://venturebeat.com/2011/08/01/american-express-teams-up-with-verizon-wireless-on-serve-digital-payment-accounts/

Could Credit Cards Be Replaced As the Primary Method of Online Payment?

     As we all know, credit cards are the dominant method of making online payments. However, recent studies suggest that credit card use for online purchases may be on the way out!
     Credit cards have been in use in some form for around two hundred years. As of late, credit card use  has skyrocketed for both physical and online purchases. Although they have been the premier method of online payment, several short-comings are becoming ever so evident to consumers and retailers. Issues such as high transaction cost, high risk of identity theft, and convenience issues are starting to become more prevalent as alternative payment methods have emerged.

     Experts suggest that mobile wallets and credit services specifically designed to be used online are going to surpass credit cards in frequency of use in the coming years. This is evidenced by the massive jump in dollar amounts of alternative purchases from 2009 to 2010. In 2009 there were approximately thirty-four billion dollars in alternative payment method purchases, followed by a nine billion dollar jump to forty-three billion dollars in 2010. By 2015, it is estimated that alternative payment methods will account for over eighty-five billion dollars of online sales. Multiple consumer reports show that forty-six percent of consumers have used an alternative payment method within the past year. These are large numbers show the potential for alternative payments to overtake the almighty credit card.
     Only time will tell if digital wallets and other alternative payment methods will surpass credit cards as the dominant method of online payment. Have you/would you use an alternative payment method? What is your opinion on this information?Would you consider using an alternative payment method in the place of a credit card?

http://mashable.com/2011/03/02/credit-card-decline/
http://www.sarahbundy.com/wp-content/uploads/2013/03/Digital-Wallet1.jpg

Dynamics changes the way we use plastic

     Dynamics Inc. was founded in 2007 by CEO Jeffrey Mullen. This company is responsible for producing and manufacturing "intelligent-advanced payment cards". I bring this company to your attention just to enlighten everyone on how the traditional form of credit and debit is being transformed thanks to the new technology everyday. Dynamics offers a wide variety of innovated cards which has led them to win many of the worlds most prestigious awards (Rice Business Plan Competition, Carnegie Mellon McGinnis Venture Competition, and The University of San Francisco Business Plan Competition), and the coolest part is their cards are battery powered. These cards include the MultiAccount, Hidden, Redemption, Dynamic Credit Card, and the ePlate.

MultiAccount:
     This card has two buttons on the face, and next to each button is an account number. Pressing each button not only changes the account you wish to use, but also quickly changes the programing of the magnetic stripe info. Lights are also used to indicate which account is currently set as the primary.

Hidden:
     This card has five buttons above your account number labeled 1 through 5. There is also a flexible thin display which hides a portion of the cards account number. The buttons are used to unlock the card, make the portion of card numbers visible, and populate the magnetic stripe with data is usable by readers (while locked the cards magnetic stripe holds no data). After a portion of time the account numbers once again are hidden.

Redemption:
     Like MultiAccount, Redemption also has two buttons, but instead of using two accounts, you use them to decide whether you want to pay by credit or by using reward points at the point of sale.

Dynamic Credit Card:
     This card helps secure your account information. After each purchase a unique security code is written to your magnetic stripe. It also contains a screen that changes the security code on the back of your card after a certain period of time.

ePlate:
     The ePlate will be the newest addition to Dynamics card line-up. Utilizing its button system, each "smart card" will utilize downloadable apps just like smart phones. Before each use you can choose which app you want to use for your purchase, and they will help you gain discounts, cash back, reward points, and more.

The real question is how will these cards find there way into present day society, and do you think they are "fool proof" enough to be implemented?
(http://venturebeat.com/2012/10/22/dynamics-launches-its-eplate-battery-powered-credit-card-to-create-payment-apps/
http://www.dynamicsinc.com/Corporate/products_dynamic_cc.php
http://www.dynamicsinc.com/Corporate/history.php)

Cashless= Crimeless?

Cash fuels most black market activities because it changes hands without leaving a trace. So what will happen if or when all that cash is converted into global digital currency?

 

 

 

 

 

 

 

One hypothesis states that crime rates will remain the same due to tax evasion and offshore bank accounts to name a few. A cashless society may even increase financial crime, according to Ellen Zimiles, a lawyer and expert on fraud and money laundering. Waldman states, "She suspects that financial crime would increase in a cashless society, since it’s easier to move electronic currency fast." This is a great point. This faster future of transactions would spill over into major crimes that could possibly be more difficult to detect than the normal briefcase of money exchange. Also, a good point that was made that the black market would simply switch to another form of value such as precious metals.

 

The other theory suggests that a cashless society would indeed reduce fiscal crimes solely due to the fact that it is traceable. The inevitable trails allow law enforcement to detect and put a stop to suspicious activity just as fast as it is committed. The black market would fall weak because without cash, it would be deemed less trustworthy than it already is.

 

My opinion is that I do believe that civil crimes would reduce in a cashless society, but criminal activity would remain the same. Nations are already on the road to becoming coinless(Canada) so of course one day it will be completely paperless. Cashless, yes. Crimeless, never.

 

 

 

Reference:

Would a Cashless Society Have Less Crime? by Katy Waldman

Mobile Wallets: Security, Privacy, and Credit Score

     The amount of purchases made through smartphone devices are increasing at an alarming rate.  These payments are expected to exceed $90 billion by 2017, a towering number compared to the roughly $12.8 billion spent in 2012. Much of this increased spending will be accompanied by the emergence and increased used of E-Wallets. Some fear is that this will put themselves at an all-time high risk of identity theft and fraud, but is that necessarily true? The answer might be yes. Depending on the app providers security, you be the difference between secure information and easily hack-able information. The other concern is what these companies will do with your information. Providers like Google have been known to auction off information of its users for the right price and you can even be tracked through your phone. With all of your transaction history, advertisers, retailers, operating systems manufactures, and app developers can build more in depth comprehensive consumer profiles. This being said your phone will know where and whenever you go somewhere, your geographic history, your social media connections, and your financial behaviors. The final concern I bring to your attention is the risk of losing your phone. Rather than being responsible for contacting your service provider, you will also need to make sure you contact your bank immediately as well. (http://www.thestate.com/2013/03/22/2689348/mobile-wallets-raise-privacy-security.html)

     A small concern to consider is how your credit score will be impacted. Through increased advertising on your phone and constant "special offers," impulse buying will be at an all time high.
(http://blog.credit.com/2012/11/how-the-mobile-wallet-might-impact-your-credit-score/)

SAFETY TIPS

•  Protect your smartphone the same way you would protect your laptop computer or your real wallet. In other words, don’t leave it out where somebody might run off with it.

•  If you do use mobile payment technologies, link a credit card rather than a debit card because legal protections are much stronger. Never link directly to your checking account.

•  Set password protection for unlocking your phone and a second password for any payment apps.

•  If a phone is stolen, let your mobile carrier know immediately so the phone and all apps on it can be disabled.

(http://www.thestate.com/2013/03/22/2689348/mobile-wallets-raise-privacy-security.html)

Read more here: http://www.thestate.com/2013/03/22/2689348/mobile-wallets-raise-privacy-security.html#storylink=cpy

Recent Agreement Between Discover and PayPal Makes Mobile Payments Even Easier

     Last summer PayPal and Discover joined forces to help making mobile payments even easier. In the coming months, companies that accept Discover Card will begin accepting PayPal.
     This agreement will allow PayPal users to make mobile payments at millions of new locations. Users will be able to pay by giving the payment clerk their phone number and entering a four digit code into the card terminal. Given the transaction is approved, the amount of the sale will be deducted from the customers digital wallet. PayPal will issue users a card linked to their accounts on PayPal which will record frequent flyer miles, reward points, discounts, and other promotional information.
       PayPal's digital wallet is planned to launch in May. All of the payment features of PayPal will be available in many new locations. PayPal's expansive user base makes for a competitive advantage from the start, and a big reason for Discover to strike a deal. The agreement between the two companies was designed to "decrease friction" in the retail spending process and increase PayPal's physical sales transactions.
      Will PayPal users fully utilize all of the offer's features or will the system prove to be impractical? Is this bold move going to spark a surge from other digital payment providers to keep up?

http://business.time.com/2012/08/23/paypal-discover-deal-ups-the-mobile-payments-ante/   
http://techcrunch.com/2012/03/09/paypals-new-digital-wallet-will-offer-personalized-deals-flexible-payment-spending-and-more/

British and Americans Skeptical of Digital Payments

 Lately there has been an exponential growth in the mobile payment industry. From online shopping on a mobile device to paying for gas with mobile payment services, there are very few payments that can’t be made on a mobile device. Yet, with all of the features and convenience that go along with making mobile payments, Americans are still not sure about the mobile payment system. However, many other countries have already adopted mobile payments as a new standard in disbursing funds.
            For many British and American mobile payment skeptics, security is a main concern. In fact, over twenty percent of Americans who have access to mobile payment services site security concerns as one of their top reasons preventing them from being used extensively. Security is far less of a concern in countries such as Singapore and Thailand, having only around fifteen percent of individuals with concerns about security keeping them from using mobile payments more often.
            Most mobile payment services such as LevelUp are far safer than traditional credit and debit cards. These services do not let anyone but the user see credit card numbers, personal information, or payment histories.
 If you use mobile payment services, are security threats as big of a deal to you as the average American? Why do you think that British and American users are still so skeptical? Is there any reasonable way to clear the air of these concerns?

http://www.fastcompany.com/3001646/us-lagging-mobile-commerce-far-east-lead