Smartphones don't add value to real-store payments? Insufficient incentives

The world famous Science and technology media techlicious writer Natasha Stocks (Natasha Stokes), the current status of the smartphone wallet market and the advantages and disadvantages of a variety of popular applications are described in detail. The following is the full text of the article:

We've used smartphones instead of maps, health trackers, and digital cameras, so why not replace our credit cards? In fact, many Americans have opted for a smartphone to shop online or use online banking via mobile phones. But a survey by financial services firm TSYS2013 found that only 6% of Americans were willing to use smartphones instead of credit or debit cards.

Rajesh Kandaswami Rajesh Kandaswamy, a Gartner analyst at Information Technology research and consultancy in the U.S., says consumers seem to be very happy with credit cards, whether they want to sign a confirmation, enter a password, or show a card before the contactless payment terminal. They don't see the added value of using smartphones to pay for real-store payments. "Consumers need to get some incentive to actually use mobile payments," he says. ”

The Softcard mobile payment application (previously known as ISIS) provides such incentives that users can receive a 1 dollar reward for each purchase of a mobile payment with an American Express serve, but no more than 50 times. The upcoming Apple mobile payment system Apple Pay will also promote the use of mobile payments. This October, the app will be automatically downloaded to iphone 6 and iphone 6 Plus as part of the iOS 8 system update and will be compatible with American Express, MasterCard and Visa cards.

Kandaswami said: "Apple play could be a catalyst for boosting smartphone wallet penetration because it has already stored millions of of financial information on itunes, because it lowers the threshold for millions of of people trying to use mobile payments." "Apple pay will also get support from big banks, including Bank of America, Chase Bank and Citigroup. Compared with credit card transactions, these big banks are unlikely to demand too much transaction fees for Apple Pay, which encourages more businesses to try to provide mobile payment services to their customers.

Why switch to smart phone wallet?

Kandaswami says mobile wallet apps can provide better payment card management, from debit cards to credit cards to discount coupons and card cards. In addition, mobile wallet applications can also better control the financial situation, in a sense, you have access to research and analysis of the unique shopping space. Paying with a smartphone can also speed up checkout. You don't have to take the card out of your wallet (or until this time you realize you forgot to take the card), you can authorize the transaction by closing the smartphone close to the payment terminal, while enjoying discounts or points.

How does money flow?

Most smartphone wallet apps now use the "Touch and Pay" feature, which requires an NFC (near-field communication) chip from the phone to work. Only the iphone 6 and iphone 6 Plus have this feature in the iphone phone series. Android phones with Android 4.0 or higher operating systems can be compatible with NFC technology, but some applications require a particularly secure encryption SIM card to store financial information. So you need to consult the operator to see if your Android phone supports the digital wallet feature.

If you use Windows Phone or BlackBerry device, you may need to wait. Microsoft recently released its Windows Phone wallet to store credit cards, membership card, coupons and various bills, but none of the windows Phone phones support the "touch and pay" feature of the wallet. Although visa approved the BlackBerry's secure payment framework last year, it has yet to see the company's official launch of its mobile wallet.

But the mobile payments battle is escalating. Retail giant Wal-Mart has announced that the company is experimenting with its own mobile payment system, and other big brands are experimenting with similar attempts. The current C, which can be compatible with all smartphones, may not be available until next year.

Hot Smartphone wallet Apps

Now, Android and iphone users can turn their smartphones into payment tools, but they need to use one of the following:

1. Apple Pay

From October this year, Apple Pay will officially support the iphone 6 and iphone 6 Plus, and Apple's Watch smart watch, released next year, is also compatible. Apple pay can store credit and debit card information, and itunes users can automatically link to the stored credit card information. Once you activate Apple Pay, you can use the "touch and pay" security payment feature provided in your shopping application, and enjoy services such as Uber and Panera Bread without having to fill out billing and shipping information.

One-touch payment: Align your iphone 6 or iphone 6 Plus front end to the contactless pay terminal while placing your finger on the TouchID fingerprint sensor. By the time the deal is complete, the hand is alerted to the user by a slight jolt.

Security: Users do not have to store or send credit card numbers, and Apple pay assigns a dedicated account to your device and encrypts it in the iphone 6 and iphone 6 Plus dedicated chips. There is also a one-time transaction ID named "token" sent to the user with the account number. "In the process of trading, consumers ' credit cards are never exposed, and businesses no longer need huge databases to store large amounts of credit card data, avoiding the risk of hacking and compromising," said Marc Rogers, chief security researcher at Lookout, a mobile security firm. However, the security of the technology depends on whether the token itself is strictly protected, and whether it has access to secure storage, but these two questions are not yet answered. ”

Reason to use: Apple pay fast. Using the iphone's fingerprint scanner to contact the payment terminal to complete the payment process is much faster than the signature confirmation and input password. With big banks and businesses already opting to support the service, Apple pay will be fast-growing.

Location: It can be used in 220,000 stores in dozens of retail chains, including McDonald's, Yum, Bloomingdales and Walgreens.

Support Phone: only iphone 6 and iphone 6 Plus.

2. Google Wallet

Google Wallet can store credit cards, debit cards, coupons and membership card information. You can transfer the money to a stored value card called wallet balance. If you use an NFC-enabled Android 4.4 phone, you can pay in the store. The "Touch and pay" feature does not support the iphone, or Android 2.3 or older operating system Android phones. However, users of these phones can still use other features of Google Wallet, such as remittances, a key to the online store checkout, tracking the associated payment card orders.

Pay One touch: Open the Google Wallet app on your phone and enter the password before contacting the payment terminal.

Security: Google will encrypt and store the user's financial information on its server, which is protected with a password. If someone steals your phone and guesses the password, Google claims to be able to use the Scam protection feature to verify "unauthorized transactions" and to compensate for these transactions.

Reasons to use: Google Wallet supports many affiliate programs and coupon sites. Even if you forget what coupons or membership cards you have, you can still use the app to get points and discounts when you shop on a one-stop website.

Place of use: any entity store that accepts contactless payments.

Mobile Phone: Android 2.3 or above smartphone; Android 4.4 and above smartphones can be used for a single touch, and IOS 6 or older smartphones are also available, but do not support one-touch payment.

3.Softcard

Softcard was developed by At&t, T and Verizon, so it is certain to be a user of one of the three major operators to use the service. In addition, you will have an NFC-compatible Android phone. Softcard supports American Express, Chase Bank, Wells Fargo credit cards and a handful of membership and discount cards. You can create an American Express serve account and use it to complete any debit cards, credit cards, or U.S. bank accounts.

One-touch payment: Open the Softcard app like Google Wallet, enter a password, and close to the pay terminal with an NFC-compatible smartphone.

Security: To use Softcard, a secure SIM card is needed to store financial information so that only Softcard applications can access the data. (If your phone is compatible with Softcard, you can ask the operator for this SIM card.) Each transaction creates a one-time token to ensure that the card information is not sent to the merchant. Like Google Wallet, Softcard uses passwords to protect data.

Rationale for use: Softcard can scan nearby merchants for offers and discounts to Softcard users and then use the application to checkout.

Use location: Can be used in dozens of chain stores, including hints outfitter, Walgreens and the game. You can view the full list on the paywiththis.com.

Support Mobile: Android 4.0 or higher smartphone.

4.LoopPay

LoopPay is a successful project for the Kickstarter platform, which includes a smartphone application and a loop device. The loop device can choose a phone pendant (39 dollars, compatible with an iphone or Android phone), or a charger (99 dollars, compatible iphone 5 and iphone 5s). Credit cards, debit cards, membership cards, scorecard and even driver's license can be scanned and stored in the loop application. Most Android phones with Android 4.2 or later operating systems support loop, but some have compatibility issues. To see the specifics, you can access the official compatibility page for LoopPay.

One-touch payment: Hold the phone pendant or iphone charger close to the credit card payment terminal, then open the Phone screen and click on the pendant button to complete the payment. If you need to show your ID card (for example, buy alcohol), you can click on the ID card icon on the phone screen to display the scan.

Security: All payment information is encrypted and stored in a security chip of the loop pendant or charger, protected with a password.

Rationale for use: LoopPay supports 90% of the world's retailers and is more widely used than any other application.

Where to use: any card reader.

Support Phone: iphone and Android 4.2 or above smartphone.

Other mobile payment Systems

Starbucks

The iphone app, launched by Starbucks, integrates membership cards and prepaid cards into a very handy "one-touch" application that tracks user points and how much more coffee is needed to upgrade to the next level. Starbucks gets a lot of money for this, with a weekly turnover of $6 million trillion.

PayPal

If you are in a store that accepts PayPal payments, you can simply log in to the app (iphone and Android) and check your location. Then you can take the purchase to the checkout counter, tell the cashier that you want to pay with PayPal, and simply complete the payment process on the phone screen. It's not a substitute for purses, but if you really forget your wallet, you can do it. PayPal application can automatically scan the nearby businesses that support PayPal.

Ensure information security

Using a mobile wallet may be safer than using a credit card because the wallet application does not send too much sensitive information (such as credit card numbers and valid dates) during the transaction. To ensure the security of mobile payment applications, Lookout Rogers gives the following tips:

1. Set password for mobile phone.

2. Download an application, you can find the phone after the loss. When your phone becomes a wallet, it can be more inconvenient to lose or be stolen.

3. Download mobile payment applications only through websites you trust (although all applications should follow this recommendation). Review application ratings and permissions and read others ' evaluations before downloading to ensure that many people are using it and believe it.

4. When you do not use the NFC connection on your phone, turn it off.

5. Be cautious when using NFC because you may accidentally pay for someone else.