The Syracuse business community has been keeping up with the rapid pace of changes in commerce brought about by the Internet era. And now these changes may become even more radical with a mobile payment system which can turn cellphones or tablet computers into credit card terminals.
Claire Cain Miller has reported on a new mobile payments option for the New York Times: “Payment Method Bypasses the Wallet”, http://nyti.ms/kdBh29. Cash may be made obsolete with small businesses such as farm stands at the local outdoor market and cafes being able to turn their cellphones or tablet computers into credit card terminals. This option for payments will drive more revenue into small businesses here in Syracuse when it is offered here.
Square, the mobile payments start-up, is working hard to make this payment option a reality while making wallets obsolete. Jack Dorsey, who is the co-founder and chief executive of Square and who also co-founded Twitter, has said with this system shoppers can make payments by simply giving their name to the merchant. Customers use an option called Card Case on Square’s iPhone or Android apps to make payments.
Dorsey has an idea to replace cash registers, point of sale terminals, loyalty cards and paper receipts with this system. The competition for Square in the mobile payments system is keen. A start-up firm, Foursquare, http://nyti.ms/jxsUZV, and other start-up firms offer cellphone loyalty cards. And Apple, Google, PayPal and major credit card companies and banks offer mobile payments options.
This is a streamlined system with built-in security features. What happens is shoppers use the Card Case app to search for businesses, pay their bill and store receipts. All the shopper has to do is open the app which has the appearance of a brown leather wallet, click to open a tab at a store and than give the merchant his or her name. Square has the shopper’s credit card number stored. Merchants than see a photo of the Square user in order to allow them to confirm that it is the same person.
Square has gone further to alleviate concerns about the security features of this system. Square has said the photos and the fact that payments can only be made if the shopper and their phones are close is significant for security concerns. And for purchases over $50 a personal identification number also has to be entered by shoppers. And so Square looks like an exciting payment option which has the potential to revolutionize the mobile payments industry.
Mandel News Service: http://www.mandelnews.com