Tuesday, May 29, 2012

Worldwide Mobile Payment Transaction Value to Surpass $171.5 Billion in 2012 says Gartner

Gartner Says Worldwide Mobile Payment Transaction Value to Surpass US$171.5 Billion in 2012


Mobile Payment Market Will Experience Fragmented Service Offerings in the Short Term
Worldwide mobile payment transaction values will surpass US$171.5 billion in 2012, a 61.9 percent increase from 2011 values of $105.9 billion, according to Gartner, Inc. The number of mobile payment users will reach 212.2 million in 2012, up from 160.5 million in 2011.
"We expect global mobile transaction volume and value to average 42 percent annual growth between 2011 and 2016, and we are forecasting a market worth $617 billion with 448 million users by 2016," said Sandy Shen, research director at Gartner. "This will bring opportunities for service and solution providers who will need to cater to the local demand patterns to customize their offerings."
The mobile payments market will experience fragmented services and solutions for the next two years. Technology providers will have to cater their solutions to the local market that will be using different access technologies, business models and partners, and under different regulatory conditions.
"There will be a few global players that have the scale and resources to serve large customers and the mass market whose requirements can be readily satisfied by standard solutions," Ms. Shen said. "However, there will always be segments that cannot be sufficiently served by the global players. The demand of these segments can only be satisfied by specialized or local players who can better understand the segment and have specific solutions to meet the unique challenges.
SMS remains the dominant access technology in developing markets because of the constraints of mobile devices and the ubiquity of SMS. Web/WAP is the preferred access technology in North America and Western Europe where mobile Internet is commonly available and activated on user devices. Gartner expects Web/WAP access to account for about 88 percent of total transactions in North America and about 80 percent in Western Europe by 2016. Near Field Communication (NFC) transactions will remain relatively low through 2015, although growth will start to pick up from 2016. 
"NFC payment involves a change in user behavior and requires collaboration among stakeholders that includes banks, mobile carriers, card networks and merchants," said Ms. Shen. "It takes time for both to happen, so we don't expect NFC payments to come into the mass market before 2015. In the meantime, ticketing, rather than retail payment, will drive NFC transactions."
Merchandise purchases will drive transactions in North America and Western Europe. These will include e-commerce purchases where users buy online, as well as in-store purchases. Major e-tailers such as Amazon and eBay have developed strong mobile storefronts and have seen significant growth from the mobile channel. For in-store purchases, Starbucks' Card Mobile app is now being rolled out nationwide in the U.S., following a successful pilot program, and Gartner expects a large number of merchants to introduce their own mobile payment services, trying to emulate Starbucks' success.
In developing markets, money transfer and airtime top-ups will account for most transaction volume, and money transfers will account for the largest portion of the transaction value because of the demand for secure and efficient ways of storing and transferring money. Ticketing/parking also appeals across many markets because it can improve efficiency in transacting, as well as offering user convenience. In developing markets, such as Africa and South Asia, users can buy bus and railway tickets using a mobile payment service so that they can secure tickets earlier where tickets are often in short supply.
Gartner projects that Eastern Europe will see the highest user growth between 2011 and 2016, albeit from a smaller user base. Asia/Pacific tops all regions in the number of users, followed by Africa. This also contributes to high transaction volume, where the two regions combined will account for more than 60 percent of the global mobile payments volume in 2016. Africa tops all regions in transaction value throughout the forecast period, benefiting from a higher proportion of money transfer transactions that have higher value per transaction than other use cases. North America is the third-largest region by value in 2016 and is twice the value of Western Europe.
Additional information is available in the Gartner report "Forecast: Mobile Payment, Worldwide, 2009-2016." The report is available on Gartner's website at http://www.gartner.com/resId=2010515.
About Gartner
Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the valuable partner to clients in 12,000 distinct organizations. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 5,000 associates, including 1,280 research analysts and consultants, and clients in 85 countries. For more information, visitwww.gartner.com.

CBA tussles with NFC security

News3 new results for NFC Mobile Payment
Gartner Says Worldwide Mobile Payment Transaction Value to Surpass US$171.5 ...
"NFC payment involves a change in user behavior and requires collaboration among stakeholders that includes banks, mobile carriers, card networks and merchants," said Ms. Shen. "It takes time for both to happen, so we don't expect NFC payments to come ...
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Payphones that dispense with small change
"The introduction of Mobile NFC services is a great way to simplify the consumer payment experience, due to its ease of use and convenience," says Marwan Al Qadi, Acting Senior Director, Electronic and Mobile Commerce, Etisalat, adding that the ...
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CBA tussles with NFC security
... but the bank claims NFC tech industry standardisation is holding back progress. On the back of the bank's latest celebrity-styled marketing push, the CBA unveiled the latest features for its NetBanking platform and mobile banking offering Kaching.
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Commonwealth Bank of Australia Blames Google for NFC Payments Delay

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SBWire - Latest Press Releases


News Release

Micro businesses and companies with mobile staff can now accept card payments quickly and securely, anywhere, anytime

Watford, 29 May 2012:  Elavon, a wholly owned subsidiary of U.S. Bancorp (NYSE: USB) and a leading global payment solutions provider has just announced the full production release of MobileMerchant, following its highly successful, first to market, pilot project, which commenced in January 2012MobileMerchant is an innovative, secure, complete payment solution that transforms mobile devices into payment terminals, allowing businesses to accept card payments quickly and securely anywhere, anytime, without a major investment of money or effort.  MobileMerchant’s payment app is paired with a Chip and PIN card reader, allowing payments to be processed using BlackBerry® or Android® smartphones and tablets.

The solution combines the ease of using a mobile phone for payments, with an affordable, easy-to-understand rate programme, making it the ideal solution for small businesses on the go, or for companies that have mobile field operatives that would like to extend the convenience of credit and debit acceptance to their customers.

“Elavon is committed to delivering solutions that enhance business opportunities for its customers, of all sizes, helping to make them more efficient and more profitable. This solution is perfect for the thousands of very small, often mobile, businesses in the UK today. Such businesses have previously not been able to accept card payments easily or cost effectively,” commented Guy Harris, Managing Director, Europe.  “Not only does our solution enable mobile commerce but it has in-built EMV Chip and PIN security, so small business owners and their customers are fully protected,” Harris concluded.

Rachel Birtwell of Your Inspiration at Home, who took part in the MobileMerchant trial, found that she has increased revenue and extended convenience to her customers by accepting credit and debit card payments on her Blackberry device. “I would definitely recommend Elavon’s MobileMerchant to any business on the go.  It has made my life easier and my business more successful.”

MobileMerchant works with an array of mobile device types -- regardless of carrier -- to ensure freedom of choice. Setup is quick and easy the business user simply downloads the App to their smartphone, and enters account configuration credentials provided by Elavon.  The solution provides full security and support for Chip and PIN cards, magnetic stripe cards, and card-not-present transactions. Cardholder data is securely captured and encrypted using a Bluetooth-connected PIN pad, ensuring that no information is captured and stored by the smartphone device.  A transaction receipt is sent to the customer by email or text message. A secure and easy-to-use online data management system offers users access to credit and debit card transaction data. Users can also monitor and analyse card transactions, manage user rights, and even run transactions using a secure Virtual Terminal application contained on the portal.

MobileMerchant is an extension of Elavon’s full portfolio of payment solutions, and is built on 20 years of experience delivering flexible and secure payment solutions to more than one million businesses around the world

About Elavon (www.elavon.com): Elavon is wholly owned by U.S. Bancorp (NYSE: USB) and provides end-to-end payment processing solutions and services to more than one million merchants in the United States, Europe, Canada, Mexico, Brazil and Puerto Rico. Elavon markets solutions including credit and debit card processing, electronic gift cards, dynamic currency conversion, multi-currency support, and cross-border acquiring through multiple alliance channels including financial institutions, trade associations, third party sales agents; as well through direct sales. Elavon’s suite of solutions is tailored to meet the needs of merchants in specialised markets such as retail, hospitality/T&E, health care, education and the public sector.

More information on MobileMerchant at www.tellmemore.elavon.com/mobilemerchant

About U.S. Bancorp (www.usbank.com): U.S. Bancorp (NYSE: USB), with $341 billion in assets as of March 31, 2012, is the parent company of U.S. Bank, the fifth-largest commercial bank in the United States. The company operates 3,080 banking offices in 25 states and 5,061 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. U.S. Bancorp and its employees are dedicated to improving the communities they serve, for which the company earned the 2011 Spirit of America Award, the highest honor bestowed on a company by United Way. Visit U.S. Bancorp on the web at usbank.com.

In July 2011 U.S. Bancorp was named “Best Bank in the US” by Euromoney magazine.

Acculynk and National Payments Corporation of India Announce Internet PIN Debit Partnership

May 29, 2012, 9:13 a.m. EDT

All online RuPay transactions to be authenticated using PaySecure online PIN pad

ATLANTA & MUMBAI, India, May 29, 2012 (BUSINESS WIRE) --

Acculynk, provider of PaySecure(R) PIN authentication for online debit transactions, and National Payments Corporation India (NPCI) today announced that Acculynk will be the premiere provider of authentication for all online RuPay debit card transactions, bringing RuPay debit card consumers in India the ability to use their PIN-only debit cards for e-commerce.
The RuPay card, launched by NPCI in March, is a PIN-only based debit card used at ATMs and POS. With the adoption of PaySecure the RuPay can be used to make online purchases. NPCI, promoted by 10 Banks under the aegis of Indian Banks' Association (IBA), introduced RuPay enabled ATM cards in June, 2011. RuPay debit card was launched on 26th March 2012 with 4 Banks.
"As a result of this partnership, RuPay cardholders will be able to make RuPay debit card purchases online using the mandated two factor authentication. We expect to bring millions of RuPay consumers to e-commerce," said Mr. A P Hota, Managing Director and Chief Executive Officer, NPCI. "NPCI has identified the Pin Debit solution of Acculynk to provide security and ease of use to ensure higher success rate.
"The addition of RuPay to the PaySecure network is a major step forward in Acculynk delivering on our promise to be the global method of internet PIN debit authentication," said Ashish Bahl, Acculynk CEO. "Secure internet PIN debit is the future of global e-commerce as the majority of card payments markets outside the U.S. are PIN-debit based."
With Acculynk's PaySecure(R), online shoppers enter their PIN on a virtual PIN-pad at the merchant checkout, and only need their existing debit card and a PIN number to complete the transaction. There are no hardware devices, additional passwords, or redirection to another website for payment.
"We are thrilled with our selection as the PIN authentication method for NPCI's RuPay as it testifies to the strength of Acculynk's PaySecure internet PIN debit solution for other developing economies similar to India," said Nandan Sheth, President & COO, Acculynk. "India is one of the fastest growing countries for payments in the world and is the first of many more debit-centric markets to come in Southeast Asia, the Pacific Rim and Latin America."
About Acculynk
Acculynk secures online transactions with a suite of software-only services backed by a patented authentication and encryption framework that provides greater security for issuers, EFT networks, merchants and payment processors. Acculynk's PaySecure(R) utilizes a graphical PIN-pad for the secure entry of a consumer's PIN online and is available to merchants through existing acquirer relationships, enabling speedy implementation. PaySecure is currently enabled on over 3,000 merchant websites. Acculynk has partnerships with 11 EFT networks to process PaySecure transactions and with six leading payment processors, and is certified with PULSE, First Data and Master Card, among other key industry leaders. Visit http://www.acculynk.com .
About NPCI
National Payments Corporation of India (NPCI) is the umbrella organization of all retail payment systems in India and is set up by the banks in India with the support and guidance from Indian Banks' Association. The organization has been mandated to build and operate central infrastructure for payment systems like ATM Switching, Mobile Payments, Cheque Truncation System, POS Switching, 24 * 7 remittance system and Financial Inclusion transactions. The organization has also a mandate to build a domestic card payment scheme. Visit http://www.npci.org.in
SOURCE: Acculynk

The rise of patent lawsuits in the mobile payments arena

by Cox Smith on  

Originally published in E-Finance & Payments Law & Policy - May 2012.
Companies large and small are rushing to develop new products and technologies to net their share of the $1 trillion of projected value in mobile payments. But this enthusiasm may be dampened by a number of patent infringement lawsuits in the US directed towards the mobile payments industry, which could limit the very innovation that has defined the industry so far. Erin Fonté and Charles Salmon, of Cox Smith Matthews Incorporated, discuss the trends so far and the moves by the big players looking to limit their liability and expand their patent portfolios in what is set to be a highly lucrative market.
Mobile payments technologies using either near-field communication ('NFC') technology or existing technology (bar codes, QR codes, cloud) may be at an adoption tipping point in the U.S. and abroad. A number of mobile payments products, such as Square (for merchant card processing), and the Starbucks app (for POS purchases at Starbucks locations) have launched within the last few years.Mobile wallet offerings that seek to replace the physical wallet and 'revolutionise' mobile payments have been launched by Google (Google Wallet), ISIS (a consortium of U.S. telecoms, card associations and big banks), and PayPal (PayPal Mobile Wallet). U.K. telecoms sought to follow suit with 'Project Oscar,' a proposed joint venture between TMobile, Orange, O2 and Vodafone, but launch plans for the London 2012 Olympic Games were put on hold and the project is currently under investigation.
Please see full article below for more information.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
© Cox Smith 2012 | Attorney Advertising

Everything Everywhere And Stagecoach Hold NFC Bus Ticket Trial

News5 new results for NFC Mobile Payment

The rise of patent lawsuits in the mobile payments arena
JD Supra (press release)
Mobile payments technologies using either near-field communication ('NFC') technology or existing technology (bar codes, QR codes, cloud) may be at an adoption tipping point in the US and abroad. A number of mobile payments products, such as Square ...
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N-Mark Logo for certified devices (Photo credit: Wikipedia)
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Jumio growing faster than Facebook at the start

10 new results for "Mobile Payment"
Jumio growing faster than Facebook at the start
Image representing Jumio as depicted in CrunchBase
Image via CrunchBase
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Facebook co-founder Eduardo Saverin said mobile-payment company Jumio, one of his startup investments, is growing even faster than the social network did at the beginning. Jumio, started nine months ago, is on course for $100 million in annual sales ...

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CrossCountry selects ImpulsePay mobile payments service
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Blogs6 new results for "Mobile Payment"
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