In a move that opens a new front in the ongoing bricks-and-mortar versus e-commerce struggle, a group of fifteen major retailers have joined forces to develop a new mobile payment system to challenge Google Wallet. The consortium, which includes such American heavy-hitters as 7-Eleven, Best Buy, CVS, Lowe's, Shell, Target, and …
The retailers would take on any payment method that is not Visa/MC.
So? That's nothing new. The business are trying to take back the cut Visa/MC and the others normally ask when their cards are used.
As for the tech involved, it will be interesting to see how it works. They've already mentioned several ways, though I think SMS is potentially too slow for point of sale. QR Codes have potential but I can sense potential security issues here. Same with anything based on Bluetooth technology.
I heard this described on the news
They were talking about using separate apps for each store which is already a non-starter for me. I have google wallet and my cards which if they do not accept those then I won't be buying from them
Not another one!
Sick and tired of US retailers home-made alternatives to a proper system. Like the petrol pumps that demand the billing zip code for credit cards instead of a pin code, and the sudden appearance of mag swipe on iphones, years after the civilised world has chip-and-pin. Starbucks qr-code-on-yer-phone-scanned-by-the-till instead of a proper system. On and on and on, contrapting ramshackle systems instead of co-operating on standards
Re: Not another one!
where would this PIN code for credit cards come from ? some cards have PIN codes for cash advance but I wouldn't want to use that at the pump. If someone were to introduce a new generic PIN then the world would have to wait until the majority of CC issuers can handle it, which may take a while.
I don't have an issue with the zip code prompt myself.
Re: Not another one!
Even before the EMV connector was widely used on cards (http://en.wikipedia.org/wiki/EMV) the banks issued and maintained a PIN system used all over at least europe and south america. Terminals had to be complient and approved, and were often issued by the banks: but there was a standard that they all more or less agreed to.
I have been using swipe-and-pin terminals since the late 1980s, and chip-and-pin since the early years of this century. I don';t think I have had a card mag-swiped outside the USA since around 2003. Even in Malawi, China, and The Andaman islands shops, cash machines, and banks all work with the chip-and-pin method. Damnm, I designed a swipe-and-pin terminal back in 1976, when the banks wanted to maintain separate PIN algorithms.
The world has had a generic PIN system since some time in the 1980s.
Zip code prompt
My card statements go to 'NG31 6SR'. Try entering that in a robot filling station near seattle airport!
Re: Zip code prompt
International credit cards, by rule, can't be used that way. You have to go inside and swipe the card there.
Re: Zip code prompt
Loads of these robot sites don't have an "inside" you can go to. Twice had to give back hire cars empty and pay 9 dollars a gallon for them to be filled up
I've paid at the pump with chip-and-pin in the Netherlands, Norway, Germany, Poland, Slovakia, Slovenia, Russia, Pakistan, UAE, Philippines, and even France. Same card, same PIN.
Oh, and Peterborough.
Re: Zip code prompt
You don't see a lot of true "robot" pumps in the US. About the only ones I've seen belong to price clubs where you have to swipe a membership card first, removing both the ZIP code requirement and most of the potential foreign traffic. All the other ones I've seen have at least one attendant on duty with a cash register: usually because cash is still a high proportion of pump payments in the US: even in the recent "pay first" environment.
Theres never been co-operation on any system be it from running buses with several companys competing on routes,the beta max and vhs video war,gas and electric services and on to the best way to screw a customer [Sales].Shops at least the big ones, want in on the 2 1/2% [ish] that visa take from their cream pie.
Wonder who will win this fight. How many of them can any of them offer free payments of any size, bullet proof security, no risk of payment cancelation and no central servers or regulating authority? Bitcoin is making a major anouncement in September.
Bit coin is a joke. If you invested in bit coins just live with the fact you threw your money away.
I wouldn't say I invested money in them but I did let my computer spend some idle time to help mine some and I do have a few Bitcoin out of the deal. But the furor died down and I got bored, so they've been sitting there.
What I'm wondering, all other things aside is, what approach to security will they take?
Will it be:
(a) Baked in from the beginning, or
(b) Bolted on as an after-thought
>what approach to security will they take
Ours or theirs?
Similar to another reader, I heard that this new system will allow vendors to have their own 'apps'. That's just plain stupid - who is going to load, keep, or search for their Walmart app while standing in the checkout line?
The article mentions that these companies are expert at managing the user experience, but they have yet to point to a single benefit to the customer!
I go to Starbucks every morning and occasionally have the 'pleasure' of standing behind some dude trying to pay his bill with the Starbucks app - which apparently involves him bringing up the app and then showing some QR code that the cashier then scans. It's pretty quick usually - but definitely not as quick as simply swiping a credit card.
The only way for a new system to replace credit cards is if it is at least as easy and fast to use. So far, I don't see that (except maybe with Google Wallet - "bumping" sounds simple/efficient enough).