The eWallet Will Change the World
POSTED BY: Rhett Baylies
The E-Wallet Powered by NFC technology will change the payments world. Are you ready?
NFC technology and the Mobile Wallet (or e-wallet) is changing the way business will be conducted in the US.
Not only is NFC or EMV necessary to help secure our payments system but it is opening the path to completely new ways to interact with your customers. It is well documented that NFC or EMV combined with a chip and pin transactions and supported with dynamic authentication greatly reduces credit card fraud rates which makes business easier and less expensive; but, the really exciting future of payments comes with the mobile wallet and the affordable marketing opportunities that it offers.
As NFC gains support from the majors card brands, consumers, and banks alike the battle for mobile wallet domination has ensued.
Everyone from silicon valley start ups, major card brands, and coalitions of major phone service providers have jumped in. Earlier this year Google was the first to market with the Google wallet which created a lot of buzz but fumbled with security issues. Other huge players like Visa who is debuting their e-wallet, the payWave, at this years summer Olympic games and PayPal who has recreated their long standing mobile wallet and landed clients like the Home Depot have launched test campaigns for public acceptance. However, when it comes to the most anticipated and talked about mobile wallet it is ISIS who may have the most promise for widespread public acceptance. The ISIS mobile e-wallet is a collaborative effort of the major wireless carriers Verizon, AT&T, and T-mobile. ISIS has met a lot of criticism in the past but in my opinion has carefully observed and modified their approach in a way that can create mass acceptance by building their wallet on an open API platform. This will allow app developers to openly develop and integrate apps designed to specific merchant verticals within the ISIS platform. With this open creative ability ISIS will create a payments platform that will function as a marketing and loyalty tool not merely a new way to accept credit cards.
This is in contrast to the vast majority of the NFC dependent e-wallets currently available.
A majority of the developers are focused on market dominance by using closed API or exclusive rights to their mobile wallet product which means that if you are using PayPal, Google mobile wallet, Visa, Square, or any of the other e-wallets for your personal use you better make sure that you have plastic to back it up because there is a good chance that your virtual wallet will work at some stores but not be compatible at others! This type of development can also work against merchants because even though the wallet can produce valuable tools for marketing and customer retention the business owner will be stuck with that solution as their credit card processor with little to no control over their cost to accept credit cards. Additionally the frustration that consumers will feel by needing to have multiple wallets will stymie e- wallet growth.
The open API platform of the ISIS e-wallet will not only allow merchants to interact directly with customers in any number of customized methods but the card issuing banks will also be able to provide information and account maintenance to card holder. This ability to tailor offers and deliver them directly to a customer via GPS location, news feed, or push notification offers great marketing value to the business owner; while, fully customizable notification settings and multiple interfaces will create a rich user experience that could be exactly what is needed to push mass acceptance of not only the mobile wallet but NFC or EMV into the American marketplace. The future of ewallet success in today’s complex payment system will partly depend on interoperability amongst wallet apps.
With industry support for both NFC and the ISIS mobile wallet from
Visa, Discover, American Express, MasterCard and PayCloud along with terminal and POS giants VeriFone, Ingenico, ViVOtech, and Equinox are off to a great start. Later this summer the ISIS e-wallet will be unveiled in Salt Lake City, UT and Austin, TX and sure to make a big impression on the way we all view commerce. NFC or EMV is the essential first step in the ongoing battle against credit card fraud. I expect the intrigue and potential of the mobile wallet will expedite the acceptance process of NFC and EMV into the American banking system.
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