11 February 2016

44975

Retired Member

1,392Posts 4,773,131Views 1,636Comments
A post relating to this item from Finextra:

MPowa launches UK's Square

23 January 2012  |  20541 views  |  11
UK e-commerce outfit Powa has become the latest firm to launch a plastic dongle and mobile app that turns smartphones into payment card readers.

This is non-compliant in the UK

24 January 2012  |  3578 views  |  1

Cardholder Present transactions in the UK are mandated to be Chip and PIN verified, and since this device is swipe only (like Square in the US) it would not reach the minimum requirements for such payments.

I doubt that any UK acquiring banks would issue merchant accounts for use with this device.  It wouldn't be supported by Visa or Mastercard, and is against the recommendations of the Payments Council.

I fail to see how this has any legs at all.  It strikes me nothing more than another media stunt by Mr Wagner.

TagsMobile & onlinePayments

Comments: (2)

John Dring - Intel Network Services - Swindon | 24 January, 2012, 13:57

Sounds about right.  I was waiting for iZettle to arrive in the UK as its solution is a Chip reader, as I recall.  Currently in Sweden only.  Its EMV approved.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
A Finextra member | 24 January, 2012, 16:31

Unfortunately iZettle is only a Chip reader, and whilst EMV compliant is not a full Chip and PIN device.  At present that won't help in the UK market either.

The only compliant solutions at present are Pin Entry Devices (PEDs) that link to smartphones using Bluetooth.  The data is end-to-end encrypted so that the phone is not in scope for the Payment Card Industry Data Security Standard (PCI-DSS).

There are a couple of relatively recent entries into the market in this area. 

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Latest posts from

Retired's profile

job title
location
member since 2014
Summary profile See full profile »

Retired's expertise

What Retired reads
Retired writes about

Who's commenting on Retired's posts

Steve Patel
Aparty Behera
Ketharaman Swaminathan
Karim Maalouf
Brendan Burge
Konstantin Rabin
Paul Zaman
Astrid Mitchell
Balasubramaniam GD
Graham Seel
Bjorn Soland
Miloslav Hoschek