{"id":4712,"date":"2012-06-06T14:38:00","date_gmt":"2012-06-06T14:38:00","guid":{"rendered":"https:\/\/evssolutions.com\/the-revolution-of-mobile-payments\/"},"modified":"2012-06-06T14:38:00","modified_gmt":"2012-06-06T14:38:00","slug":"the-revolution-of-mobile-payments","status":"publish","type":"post","link":"https:\/\/evssolutions.com\/insights\/the-revolution-of-mobile-payments\/","title":{"rendered":"The Revolution of Mobile Payments"},"content":{"rendered":"

Square<\/a> revolutionized payment processing<\/a> for the little guys and many in the industry have followed suit.
\nGroupon<\/a>
\nnow wants to get in the game and reportedly will compete on price. At the core
\nof this smartphone-based payment revolution is the core idea of a simple,
\nflexible and inexpensive means for small businesses to take credit card
\npayments. Use the device on your hip, add a small attachment, have your
\ncustomer sign and violayou now except credit cards. Traditionally obtaining
\na merchant account was the most difficult part, but somehow these players have
\nfigured out how to mitigate the risk. As a small-businessguy whos had to
\nfigure out a way to take credit card payments or lose a large client, the
\nprocess can be daunting without this type of streamlined process (thanks Google!<\/span><\/span>).<\/p>\n

<\/p>\n

One of the core beliefs behind this service is to make accepting the card as
\npainless as possible for the merchant and<\/span><\/em>
\nthe customer, keeping the process as unobtrusive as possible. Its a
\nmodel thats worked for the most coveted tech companies in the world, but could
\nit backfire on mobile payments? UniBul put together a great analysis that
\nmerchants pay for as much as 41% of fraudulent
\ntransactions<\/a>, while 59% come from the POS. Merchants taking mobile
\npayments are using the same old fraud prevention<\/a>
\ntechniques: check the signature (rarely) and verify adrivers license
\n(rarely, if ever). But as weve seen all too often, the human element in a
\nface-to-face transaction is dubious at best. People dont like confrontation so
\nthey run the card and smile.<\/p>\n

Two scenarios come to mind for mobile payments: the farmers market and the
\nflea market. On any givenSaturdaymy family may drop $100 total over
\nvarious booths at our local farmers market. Rarely are the transactions over
\n$20 and most merchants take cards. The risk for the merchant is low (although
\nfarming isnt exactly a high-margin business). In contrast, Ive seen
\ntransactions at flea markets for antiques go for over $5,000. The mobile
\npayment use is the same, but the risk is much higher. What we dont see is an
\nintegrated, anti-fraud measure offered to merchants by the mobile payments
\nindustry. In either scenario a stolen wallet would provide all thats
\nneeded to commit fraud. Verifying the customers identity<\/a> is cheap and easy,
\nespecially with the tool at hand. Since the customer is signing
\nthereceipton the device, why not integrate out-of-wallet questions
\nto stump any would be scam-artists? The cost of the verification is a fraction
\nof the merchant transaction cost, and in essence, is an insurance policy
\nagainst a large loss. Let the merchant decide when and if they want to verify
\nthe cardholder. Youre essentially removing the human element and taking the
\nconfrontation out of the clerks hands, while mitigating risk.<\/p>\n

[Contributed by Jeff Davis, President & CEO]<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Square revolutionized payment processing for the little guys and many in the industry have followed suit. Groupon now wants to get in the game and reportedly will compete on price. At the core of this smartphone based payment revolution is<\/p>\n","protected":false},"author":40,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[35],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/posts\/4712"}],"collection":[{"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/users\/40"}],"replies":[{"embeddable":true,"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/comments?post=4712"}],"version-history":[{"count":0,"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/posts\/4712\/revisions"}],"wp:attachment":[{"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/media?parent=4712"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/categories?post=4712"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/tags?post=4712"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}