An Alternative Payment Approach

Cimbal.PNG
I received an unrequested replacement credit card in the mail today along with the following note:
Your account number may have been illegally obtained as a result of a merchant database compromise and could be at risk for unauthorized use.

Great. Well at least they detected the problem before extraneous charges appeared. As long as its profitable, thieves will always find new attacks regardless of how good PCI is or isn't.

Traditional electronic payments "pull" funds from your account, so you have to share your account details (via a credit card) with the merchant. But what if we changed the approach to "push" funds into the merchant's account as payment. That way the consumer doesn't have to share any account information, and the merchant is sharing a "deposit only" account. Seems just as convenient and much, much more secure.

Mobio has such a payment solution. They display a QR Code at the POS or on the restaurant bill that is scanned using your iPhone to get the merchant's account information. Scan the image, confirm the amount, and receive a confirmation of payment. Cimbal has a similar solution that even allows person-to-person payments.

The proliferation of smartphones has really opened a whole new world of possibilities when it comes to payment. Its definitely a hotbed of innovation right now.

Comments:

David -

You hit the nail on the head. Mobile payments can (and should) be more secure than any other type of payment. Mobio is now being used in the NFL too, for in-seat food order and delivery. Check it out here, including a video: http://bit.ly/aB9BOd

Best,
Mark

Posted by Mark on September 27, 2010 at 10:11 AM CDT #

Very much the payment model operated for many years in the Netherlands for bill payment and distance selling--"Via de bank"

One of the banks in Australia is also now operating a person to person "push" payment model via mobile/email.

Posted by Miles Thomas on September 29, 2010 at 03:39 AM CDT #

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David Dorf, Sr Director Technology Strategy for Oracle Retail, shares news and ideas about the retail industry with a focus on innovation and emerging technologies.


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