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Credit Card Applications » News » Other » More Competition for Point of Sale Credit Card Processing

More Competition for Point of Sale Credit Card Processing

October 26, 2010 | Updated on October 26, 2010
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The content is accurate at the time of publication and is subject to change.

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%.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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