Google increase security of mobile wallet

Fingerprint sensor will be used as a way to increase the security of Google's NFC payments system. NXP Semiconductors, AuthenTec and DeviceFidelity have announced that Google has tasked them to create an infrastructure to enable the use of the new security measure on their Android smartphones. The system could be ready as early as next year. Larry Ciacca, chief executive of AuthenTec, said: "For the average consumer, knowing that no one can get into their mobile wallet even if something happens to their phone is paramount."

 

The group plan to use fingerprinting with the logic that most consumers will use their fingers to operate the app anyway. Thus, they hope to speed up transaction times.

Make your own NFC iPhone

Too impatient to wait for an NFC-enabled iPhone, one user took matters into their own hands. Vivian Kim simply put a contactless bank card inside that back cover of her iPhone 4. It remains unclear whether or not the iPhone 5 will have contactless payment functionality, despite the technology already being available in Android devices. Another solution for those frustrated at the lack of availabilty of NFC-enabled handsets are the contactless stickers offered by firms such as Citi and Mastercard. Vivian said:

 

"It's a fun and impressive hack that allows you to get just a little bit more out of your iPhone 4."

M6 Toll to go contactless

The UK's M6 Toll road will start accepting contactless payments in a trial beginning in the autumn, according to Midland Expressway who run the toll. The technology will come into full use early in 2012, in time for the London Olympics. Midland Expressway are working with Barclaycard and CreditCall to install the new readers which will allow drivers to simply tap their card as they drive through the toll. It is hoped that the move will make using the toll quicker and easier for drivers.

Hungarian Mobile Wallet Association formed

A group of mobile operators and the loyalty programmer operator SuperShop have joined with Mastercard and OTP Bank to form the Hungarian Mobile Wallet Association. The group, which include Magyar Telekom, Vodafone and Telenor, has come together in order to develop the up and coming technology of mobile payments. Not only will they be looking at the technology but also at the best ways of implementing it in the country. They hope to begin trials this year and to be able to launch the technology early next year. Hungary is the third eastern European country to show an interest in mobile payments, after Poland and the Czech Republic.

RBS goes all out to launch contactless card

Royal Bank of Scotland (RBS) are not the first bank to launch a contactless card but they certainly did it with the most fanfare. The first time one of the cards was used was by the Williams Formula 1 team at a McDonald's drive-thru in Billingsgate, London. The quick pitstop was the ideal showcase for the new card, which RBS claims makes paying twice as fast. For transactions under 10 pounds the card can be used without a PIN or a signature, instead it is simply tapped against a special reader. Iain Clink, managing director of cards and direct finance at RBS said:

 

"Having been the first in Europe to trial contactless cards means we know that everyone wins with this new way to pay. People love the convenience and speed of the card as well as the freedom from worrying about whether they have enough change for everyday things like morning coffee, a newspaper or a sandwich at lunchtime. Retailers like contactless cards too because they make paying faster which means faster moving queues and happier customers."

New player in mobile payments

Mobile payments company Dwolla has hit $1 million in daily transactions after seven months in business. By comparison it took Jack Dorsey's Square 10 months to hit the same figure.

 

Unlike Square and other competitors, Dwolla's system bypasses credit and debit networks and takes payments directly from the user's bank account. Dwolla also combine this with social networking and location-based tools. For instance, users can transfer money to their Facebook and Twitter contacts. The system also means that merchants can accept payments without having to install new equipment.

 

Dwolla still faces challenges though as they have been slow to win over merchants and lack the big name of Dorsey.

PayPal goes offline

Not content with being the platform of choice for online payments,
eBay's PayPal plans to move into offline payments. According to Chief
Executive John Donahoe, the company will be trialling a point-of-sale
system towards the end of this year. If the trial is succesful, they
plan to release the service in up to 20 major US retailers. Donahoe
said:

"We intend to help retailers grow their businesses offline in the same
way we helped merchants grow online."