Analysts James Friedman and Meghna Ladha of Susquehanna Financial Group bring us up to speed on the latest developments in the payments industry based on their interaction with participants at the Money2020 conference in Las Vegas last week.
Platform or Cloud based payment systems
- Amazon.com, Inc. (NASDAQ:AMZN)’s all-new “Login and Pay with Amazon” payments service allows users to make payments by simply entering log-in details such as the email address and password. “Very easy to use and intuitive,” say the analysts. With 215 million active customer accounts, Amazon is likely to give rival checkout services, such as Paypal and V.me, a run for their money. It already has tie-ups in place with gogoair (see below), build.com and cymax.com.
- Clover Station is a cloud-based tablet POS system launched in partnership with Bank of America Merchant Services. It expects to service millions of SMB customers by end-2013. User friendly features include 24x7x365 customer service, MarketPlace app, analytics for the merchant and offline payment functionality.
Source: First Data press release
- Leading the switch over from cash registers is Leaf’s open mobile POS platform. It is also targeted at new merchants. The system collects SKU level data and is able to provide business intelligence to the merchant for just $50 per month. Merchants need to invest $250 in a proprietary tablet to be supplied by Leaf.
- Their new “Payment Code” technology allows a shopper in a store to open the Paypal app on a smartphone – this displays a four-digit code which can be input into the merchant’s POS terminal to effect the payment.
- SMBs can replace cash registers with Square’s register for a simple 2.75% transaction fee. The Square register is already operational at 40K locations and the company boasts of 4.5M customers.
- Created by merchants for merchants, this system will utilize the strengths of Gemalto NV (EPA:GTO) (OTCMKTS:GTOMY) and Fidelity National Information Services (NYSE:FIS) to offer an integrated mobile-commerce platform.
Mobile based payment systems
- A NFC based wallet that will be pre-loaded with a Chase Visa Inc (NYSE:V) and American Express Company (NYSE:AXP) credit card and used through a smartphone.
- It is a mobile payment app that is built into POS systems such as NCR and Shopkeep. iOs and Android devices will effect payment through a QR code.
- This is a cloud-based, white label app suitable for banks and retailers who can use it to offer payment services as well as advertise products and offers.