PayPal - page 2

PayPal announced a major update for its iOS app today that includes a new iOS 7-styled redesign focused on giving users more options to use digital payments at brick and mortar locations.

The update allows customers to pay for items in-store, transfer money to friends, split bills, check-in to locations, and even open up a line of credit with the new Bill Me Later feature. PayPal is also working with restaurants to allow users to order and pay for items within the PayPal app, rather than having to download a separate app for all your favorite restaurants.

The new update will be available for free on Google Play and the App Store later today.

Here’s an intro video PayPal released for the redesign: :

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This is interesting: along with their new redesign, in Germany, Apple has made it possible to pay for products ordered from their online store using PayPal.

In Germany, it is very rare for consumers to have credit cards, or even for brick-and-mortar businesses to take credit card orders. Allowing German consumers to pay for purchases with PayPal may make the Apple online store more accessible to them, or it could be the first sign of a global agreement between Apple and PayPal as another available payment option for consumers.

Nice spot by Macerkopf.

Source: Apple Store

We’re living in a particularly insecure digital age right now. It seems like every other day, a major internet company is getting hacked, or having its database of user passwords liberated by groups of hackers.

It’s pretty obvious at this point that we need something better than passwords to secure us from increasingly sophisticated hackers and data thieves. Many sites are rolling out 2-Step authentication — access the site on a new computer, and you have to enter a code sent to you by text message — but that implementation can be a pain. There’s got to be an easier way.

Michael Barrett, PayPal’s chief information security officer, thinks there’s a better way. It’s called the iPhone 5S.

After months of delays, Isis has announced the debut of its mobile payment system. A joint venture by AT&T, T-Mobile, and Verizon, Isis made news earlier this year at the Mobile World Congress in March, but has been pretty quiet since then. During that quiet period a number of other players in the mobile payment market have stolen the spotlight and announced major deals.

Apple is expected to eventually unveil its own mobile payment system, one that will most likely be based around the iTunes Store payment system, but hasn’t made announcements beyond iOS 6’s Passbook feature. Apple has also kept quiet about whether it will include NFC chips used in some mobile payment systems in the upcoming iPhone 5, which some analysts and pundits consider a barrier to entry into the mobile payment market.

Square’s announcement of its partnership with Starbucks and the launch of new mobile payment company by several key retail and service chains were signs that the mobile payment industry and digital wallet concept is big business. Late last week, however, there was more news on the mobile payments front that proves that the race is far from over – one could even say that it’s barely started.

In a move that could make Square’s deal with Starbucks seem small and limited, Reuters reports that PayPal may soon be expanding its brand of mobile payments to include on the biggest fast food chains on the planet – McDonald’s. PayPal is currently testing a payment system in 30 McDonald’s locations in France. The company demoed the technology earlier this year.

Last week, Square announced a partnership with Starbucks to provide back-end payment processing and CRM for the coffee mega-company. Today, Square brings news of the other end of the business spectrum. Small businesses who make less than $250,000 per year will no longer have to pay the standard 2.75 percent per swipe processing fee (though they can still opt for this) if they pay one flat rate, currently set at $275 monthly.

If a small businesses chooses the flat rate option, they’ll essentially end up paying 1.3 percent per swipe – a significant savings if they meet the criteria. IF the business goes over the line, they’ll be charged the standard per-swipe rate.

This is Square making sure that it can have as many users as possible, from super corporate giants to small mom and pop shops with a bit of tech savvy.

In a move that makes the Square/Starbucks partnership announced last week look like small potatoes, a group of national and international retailers announced plans to develop their own mobile payment network complete with mobile apps and digital wallet functionality. The move seems almost certain to shake up the nascent mobile payments market where a wide range of companies and organizations have been trying to figure out the secret sauce that will turn mobile payments into a mainstream retail system for the past couple of years.

The Merchant Customer Exchange or MCX, as the new company is known, plans to deliver a solution that offers convenience in both making purchases and in receiving customizable offers from retailers. Development of a mobile app and payment network are underway, but MCX has yet to announce any details about either the app or its network.

Last week’s announcement that Starbucks is partnering with Square for mobile payments and credit card processing is big news for the nascent U.S. mobile payments market. It was also a warning shot fired by the startup across the bow of traditional payment processing companies, many of which have struggled to bring together an effective and successful digital wallet (or iWallet) solution. The move could also complicate any plans that Apple has to move into that market following the release of iOS 6 and its Passbook feature.

While Apple’s taking a wait and see approach to the nascent mobile payments and digital wallet industries, PayPal seems ready to launch an all-out offensive. In addition to its existing assortment of mobile, local, and online payment systems, PayPal announced this week that it is acquiring startup card.io.

card.io currently works with a range of iOS and Android developers to help them integrate mobile credit/debit card payment capabilities into their apps without the need of additional hardware like Square’s card reader or PayPal’s Here card reader. Instead, card.io’s partners use the built-in camera of an iPhone (or other iOS or Android device) to snap a photo of a credit card. The card number and related information is extracted and passed to a payment processor to complete the transaction (manual keying in a card number is also supported as a backup).

Apple is working to block the Russian servers that are allowing users to circumvent iOS in-app purchases and obtain content for free. The Cupertino company reportedly began blocking certain IP addresses over the weekend, and had one server taken down. But despite its efforts, the service continues to work.

Mobile payment technologies have an interesting and complicated relationship with local businesses. On the one hand, local mom-and-pop restaurants, shops, and services are probably the companies that you’d expect to adopt new payment technologies the slowest – particularly if those technologies require new point of sale hardware like an NFC reader. On the other hand, mobile payment systems could be poised to deliver a new wave of business to such local companies.

Making the situation more complicated is the fact that any mobile payment system (Google Wallet, PayPal in-store purchasing, or any system that Apple may be slowly developing) can’t be considered a solid winner or option unless that system strikes it big with local businesses. A system that only applies to large chains, like the in-store purchasing the PayPal rolled out to Home Depot and other retailers, can’t be considered mainstream unless it’s adopted very widely and by a significant percentage of small businesses.

Further complicating the relationship is the fact that many players in the race to create a true digital wallet are on focusing widely varying options for small and local businesses. That means that no one company is leading and no company really seems to have a consistent strategy for tapping this immense and important market.

PayPal, Amazon, and Apple are leading the mobile payment market according to IDC. The research company released the results of a business strategy study that focused on new and emerging payment technologies. The 2012 study is eighth year that IDC has conducted the survey, but it is the first year where mobile payments were a major focus.

While many efforts are underway to develop new payment technologies, many of them based around NFC, most new technologies have yet to catch on with consumers.

Overall mobile payments, however, are catching on with consumers. IDC reports that the number of individuals making mobile payments has doubled since last year’s report and that one-third (33%) of consumers have made some form of mobile payment. The data also shows that the mobile payments market is being led established players and existing technologies.

Are mobile payments safe? That was a question that the House Financial Services Subcommittee on Financial Institutions and Consumer Credit posed to various finance officials earlier today. The subcommittee didn’t get a particularly clear answer.

According to written testimony provided by Stephanie Martin, associate general counsel for the Federal Reserve Board of Governors, defining what protections apply to mobile payment systems is complicated by the fact that many businesses involved in the transfer of money through mobile devices aren’t banks. Companies involved in mobile payment systems that don’t meet the established definition of providing banking services aren’t subject to certain scrutiny, regulation, or consumer protection laws.

Read enough articles about NFC and its potential for mobile payments and you’ll find yourself thinking the technology is the inevitable mobile payment platform. Every major mobile platform except iOS already includes or will include support for NFC-enabled devices. There are lots of partnerships being announced between key players like device manufacturers, carriers, and banking or credit card companies. It also just seems to make sense that this is the future.

Until you look up from all the stories about what NFC and look at what’s really happening in the  world. You don’t see much evidence of NFC payment systems in everyday life. NFC isn’t yet emerging into mainstream commerce, but there is ample evidence that mobile payments are taking off without it. Those options becoming mainstream are decidedly low tech by comparison, but that’s precisely why they’re succeeding.

There’s been a lot of talk over the past year or so about mobile payment systems and the concept of an iWallet. One of the challenges to any digital wallet concept is that it needs several components, most of which are provided by different companies and governed by different regulations. At a minimum, those components need to include on-device hardware, a mobile app or OS that can manage the transaction, a banking or credit card system that actually transfers money from your account to a retailer, support by major POS and cash register systems, and some mechanism for your phone to securely check-in with your selected account(s) to ensure money is available for purchases.

That’s a tall order and a lot of cooperation is needed when you have a different company providing each of those required functions. One way to simplify the process is to have one company deliver all or most of those functions on its own. There are few companies in the world that can pull all those capabilities together. One of them is Apple.

An iTunes customer who was billed twice for the same song has filed a class action lawsuit against Apple after the Cupertino company refused to refund his money. Robert Herskowitz $2.58 for Adam Lambert’s pain-inducing pop song “Whataya Want From Me,” but he should have paid just $1.29.

He’s now taking Apple to court in an effort to make refunds easier for iTunes customers.

This week featured a handful of announcements relating to using your iPhone as a virtual wallet including news of Boston’s smartphone-based commuter rail payment system and CVS integrating its loyalty card system into its iPhone app.

Capping the week is news that restaurant chain T.G.I. Fridays announcement that more than of its franchises in the U.S. will begin offering patrons the ability to settle their restaurant or bar tab using an app. The move comes as part of partnership with startup Tabbedout – a mobile payment company that aims to bring iPhone (and Android phone)  payments into the mainstream with a focus on bars and restaurants.

Paypal has finally made it into the mobile payment market after being beat to the punch by the likes of Square and Intuit. PayPal may be late to the party but they have a more recognizable name in the world of payment systems and that may just be enough to push them to the front of the line. Besides their name, they’re also offering merchants a 2.7% flat rate on transactions versus the 2.75% offered by Square. PayPal didn’t stop there either, launching a full on geometrical attack by choosing a triangle as the shape of choice for their card reader dongle.

Intego, the company behind the popular VirusBarrier security software for the Mac, has uncovered a new trojan horse called ‘Flashback.G’ that infects Macs running older versions of Java Runtime. The software installs itself on your system without your acknowledgement when you visit a malicious webpage, then it will record usernames and passwords for sites like Google, eBay, PayPal, and more.

Here’s another sign we’re edging closer to a world without paper money: Chase bank has added a feature to its iDevice apps that lets its customers transfer money from their Chase accounts to any bank account in the U.S. (both Chase and non-Chase alike).

Customers in UK pizza chain Pizza Express can now pay their bills with a Paypal account via an iPhone.