A new company called MobilePay USA is challenging the industry of cell phone apps and point of sale credit card processing with its new application that provides yet another alternate way of making payments without carrying around plastic money or credit cards wherever customers go. This program which uses the iPhone to provide a new solution to payment at stores is the winner of Audience Choice award at a show called TechCrunchDisrupt.
Kyle Circle who is the president of MobilePay Company said that although the product is not immediately ready for launching it should be made available sometime in November. The best part of the product according to the president of the company is the fact that it doesn't need additional usage of hardware, like some of the other phone companies are planning. It is because this new product is capable of storing the credit card confidential information digitally in a secured payment provider.
The solution to be launched by MobilePay would directly compete with another solution offered by Square which uses a small device attached to the phone which will work as a credit card reader to avoid carrying around your credit card for shopping. Kyle Circle, the company president also expressed views about the high cost incurred by the Near Field Communications which has been used in the public transportation trial held by Visa for its solution to credit card processing. The MobilePay solution instead makes use of the GPS to locate the point where transaction is taking place with the merchant and then the user is asked to enter the pin into the iPhone. In fact, there is also opportunity to pay tips and discounts through this solution. The tokenization is used by the PIN to transmit the card information to the merchant. The customer receives his or her paper receipt for the purchase after the payment is processed through the credit card payment processing system of the merchant.
The solution is also considered safe from another angle. Thos who wish to subscribe to this service only need to enter their information by signing up the application available online. This way, the information about the customer is safe even when the customer loses the phone. In fact, the product also allows the service to be turned off remotely when required which proves to be another intuitive advantage when the phone is lost. This service would cost only 1%.