Orange and Barclaycard have formally launched 'Quick Tap', a contactless mobile payment service which allows consumers to make purchases on the high street using their mobile phone for the very first time.
Another NFC story...
...the launch proposition will use a secure SIM-based approach to mobile payments...
Does this really mean that NFC is embedded in the SIM Card and this is yet another alias to a PrePay Barclaycard? In which case this is not what I call a Mobile Payments. Its still a card payment. I'm interested to get more detail before analysing further
though. Can a user transfer balance from their mobile prepay account to the wallet, and vice versa for example.
Well at least here the PIN is optional, and redundant if you use a phone PIN.
But then, taking your NFC enabled credit card out from a wallet would be quicker anyway. As would paying cash, assuming small txns!
The point is, this is just transferring carrying the credit card from your wallet to your phone. The rest is the same except now you have a separate Prepay wallet account as well. The Orange Shop Web was off air last night so I couldn't check it then,
but it looks like that balance (wallet) is held at BC. Apart from the NFC chipset and the Managing App, I am not sure the phone is doing anything else but hosting.
Barring a few exceptions (e.g., Boku, Zong and their Gen Y Mobile Payments competitors), most open-loop mobile payments available in the market today are based on an underlying credit/debit/prepaid card. As such, they only replace the physical card as a
form factor but don't supplant the basic card account. I've never tired myself of voicing this point whenever I've come across articles and blogs that seem to suggest that Mobile NFC payments sound the death knell of banks' flourishing cards business. Thanks
to Quick Tap, which explicitly involves a bank card brand, this point has become obvious.
With an upper ceiling of only GBP 15 per transaction, I'd opt for no password/PIN just for Quick Tap - why go through the inconvenience when the risk of fraud / loss is so limited? While a GBP 10 credit will entice sign-ups, I'm sure we'll see other measures
going forward to sustain consumer interest once the novelty factor wears off. For example, a single 'PayPal meets KeyRing' type of app with a single password that stores all credit/debit/prepaid/loyalty cards owned by the consumer. This might sound a bit adventurous.
But, right now, we seem to headed towards one app for each card - and one password for each app, for those inclined to passwords - and I doubt how many consumers will stand that level of 'app fatigue' and friction in the long term -
all for making a payment which was never so difficult with cash, was it!
A single app for all credit/debit/prepaid/loyalty cards doesn't seem so adventurous after all. According to a story on NFCnews, ISIS is planning to launch exactly such an app that will store mobile coupons in addition. I just hope this plan of becoming the
universal mWallet doesn't meet the same fate as ISIS' erstwhile goal of launching a brand new payments network to supplant Visa/MC/AmEx.
Excellent salary with uncapped commissionMilton Keynes
© Finextra Research 2013