Founded in 2008 by Rodger Desai and Mike Brody, Payfone’s core business is to facilitate online purchases with the use of cellphones. The company relies on the usage of the SS7 inter-carrier roaming network to create mobile identities that make mobile payments more seamless. Like Boku and Zong, Payfone offers a payment solution [...]More... →
BOKU and ZONG are new online payments companies that facilitate payments of virtual goods though mobile phone bills. Their primary clients are online businesses that sell virtual goods, which they connect to mobile network operators that facilitate the payments.
Boku was launched in 2009 as a merger between Paymo and Mobillcash. The company allows [...]More... →
Google Wallet is a smart phone app released by Google in September 2011. Very similar to ISIS, Google Wallet hopes to help consumers by consolidating the contents of their wallets (credit cards, debit cards and gift cards) into their phones, adding convenience and reducing clutter. Like ISIS, Google Wallet is installed as an [...]More... →
Like its closest competitor GoogleWallet, ISIS a platform for making NFC payments. These platforms can be thought of as the software that allows the NFC hardware to operate. For a transaction to take place between customer and merchant, both must have working NFC hardware as well as software platforms that can communicate with one another. Analogously, two people might both have computers, but if one is using Google Chat and the other Skype, they will not be able to communicate to each other. ISIS, in this case, is like Google Chat or Skype – and their goal, then, is to make sure that as many NFC payments as possible communicate through ISIS “software”. If the joint venture can manage this, then they will have many ways of monetizing their role in the NFC transaction when it comes time to finally sit down and determine a specific revenue model. It is for this reason that GoogleWallet and ISIS have been waging a virtual war with the expansion of their platforms; both have been struggling against the other to gain market share as fast as possible, mostly through competing for partnerships with businesses, banks, credit cards, and merchant service providers.More... →
Dwolla believes that rather than rely on existing credit card networks – which are known to take a 2-5% a transaction – consumers should instead use internet as a means to transfer money quickly, cheaply and more securely than cash…. Dwolla’s main value added is a way to transfer money for much cheaper than credit cards or payment services built on top of credit cards. For merchants, this is a clear advantage. Customers, on the other hand, do not always realize the impact of interchange fees. However, Dwolla has been adding a slew of “add-ons” to their service to appeal to a broader audience:
MassPay – allows payment of up to 2000 people at once; geared towards small to large businesses as a more efficient means of payroll.
Spots – an add-on application that allows users to see which merchants nearby accept Dwolla.
Proxi – An add-on that allows users to see other nearby Dwolla users in real-time.
Grid – Allows users to better protect their credit card information, reducing the risk of fraud.
FiSync – a real-time money transfer system designed to replace Automated Clearing House (ACH); allows transfers to occur within 24 hours, compared to 2-5 days for ACH.
Instant – An opt-in feature that allows a user to borrow up to $500 in a given month.More... →
by Quang Truong NICHE
Square is a San Francisco based startup founded in 2010 by Jack Dorsey, founder of Twitter. Square enables merchants – typically small businesses and individual contractors – to collect payments by credit card without having to invest in expensive and immobile point of sale terminals. They accomplish this by distributing [...]More... →
LevelUp offers an attractive product for both merchants and consumers. Consumers can download the app entirely free and will receive discounts and meal credits automatically. Merchants benefit by being able to receive payments without paying any interchange fees. Merchants don’t pay any monthly fees and are only charged if LevelUp helps a business acquire or retain a customer. LevelUp also takes a much smaller cut of the initial purchase relative to Groupon. Additionally, the fact that LevelUp is concerned about customer loyalty is seen as a huge boon for merchants – allegedly, 65% of customers using a LevelUp discount return for at least a second visit, compared to fewer than 5% for Groupon.More... →
How do payment companies innovate? Should incumbents and oligopolists be concerned about upstarts? Do online payment companies work with or against existing banks and network operators? Should bank industry alliances scare web companies, telecoms and payment networks?
The answers to these questions depend on a clear understanding of how payment companies can innovate. I argue [...]More... →
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