Transforming Banks Globally

A post relating to this item from Finextra:

19 August, 2011 Sweden's Square hits App store A Square-like European start-up, called iZettle, that turns phone handsets into card payment terminals, has officially launched in Sweden.

To be fair and square, it must be contact less

I am not impressed by iZettle. Please hear me out.

The concept of contact based card reader devices is nothing new. We see it all day. It so ubiquitous, that we don’t notice it at all; Let alone recognize it as an innovation. The accompanying video reveals all. Device 1: mobile phone, device 2: card reader and 3: the credit card itself. This is not leveraging technology. Pardon me if I say innovation is completely absent.

This is what is needed. iZettle must collaborate with credit card issuer. The app (let us call it txn app) jointly developed must have a built in virtual card. When activated by the user on the basis of secure information the card will go ’live’, ready for use. The smart phone user can browse on online stores. Select the product to purchase; then activate txn app. To make a transaction the smart phone will use the txn app connect with seller’s app through WiFi. Once connected, the screen will display  products with price, on touching the product the price will be locked. A transaction password will authenticate and complete the transaction. This done the app will maintain a log of failed and successful transactions. The log out feature will close the app. 

While shopping on premise the txn app will connect without contact to the reading device in a mall (say). The card information from the app is transferred through blue tooth or similar technology. On authentication the transaction is approved.

Yes.I agree standards are required to be built across each lifecycle stages in the process starting from app itself.

This is innovation.

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