Mobile Wallet Media is a news media, analyst, marketing and consulting firm focused on the future of mobile: payments, marketing, loyalty commerce, security, prepaid, virtual currency, daily deals and the convergence of them all with social and local. The Chief Editor, Randy Smith, was the primary founder, inventor and former CEO of MobilePayUSA, a TechCrunch Disrupt Startup Alley Winner.
Showcasing innovation in mobile and digital payments, loyalty and security is what Money2020 was all about. I was able to interview 20+ companies and discover a few rising stars offering game-changing innovation. I'll start with major announcements, highlight the top innovations and key conversations at the conference.
The 'Disruptive Innovation Meteor' named MOBILE has struck the world's of retail payments, banking and marketing. Firms wanting to survive, compete and win in this new environment must adapt by embracing disruptive innovation or risk becoming irrelevant or extinct. Read story
PayPal may be growing past it's awkward tween years into a full blown, scalable mobile payment solution. I last reported on PayPal the day after they updated their app and the day before they announced Beacon. In this article I suggested they implement a dynamic PIN and what do you know they listened! LOL! (I did however make this same suggestion over a year ago as well). The announcement of Payment Code paired with Dynamic PIN is the solution PayPal is going with. What will happen to showing your picture to pay, only time will tell. A year ago I said it had scalability issues.
Some of the brightest stars in tech, payments, retail marketing and social media have aligned to forge an alliance aimed at setting standards for card-linked offers. However, with mobile wallets taking off the door is opened wide for tender steering transactions to alternative payments such as bitcoin, branded bonus value currency (Marqeta, Target and MCX?), or low cost funds transfer providers like Dwolla. Will CardLinx
need to move beyond just "card-linked" offers to incorporate "Mobile/Digital Wallets linked offers?" I wrote about this a few months back. Card-linked offers can work seamlessly within a mobile wallet, but does this not limit mobile and digital wallet providers from offering their own offers? This seems to stack the deck against all offers not card-linked. Pretty smart! FI's & networks extend their reach. Cardlinx.org
Loop may be the next Square, this time for consumers rather than level 5 merchants. Loop offers a dongle or card case to enable you to pay with a tap of your phone to a credit card terminal. The device transmits the card credentials emulating a card swipe through a reader or terminal. The device first works to capture the encoded data from the magnetic stripe on any of your payment, loyalty or ID cards. Once cards are digitally stored in the Loop Wallet the user may tap to select the card of choice. This company is the 5th startup founded by Will Graylin, the last being Roam Data which was sold to Ingenico. This is one sound concept. Right now the card data is being transmitted without encryption to the reader, which could be a problem they need to solve if it is to scale. This will not be a true concern unless the tech scales because fraudsters won't bother until then. This is a invention with legs that hit the ground running. If you want to get in the loop they are selling devices on Kickstarter. See video below.
Tyfone's security technology directly and inoperably addresses a current and growing threat to our cyber security; passwords are being hacked and may soon become unreliable. It is the very essence of the "Request-Response ID" system of passwords that make them attractive targets in bulk. According to Tyfone, our current password system cannot keep up with Moore's Law for hacking. Deloitte predicts that 90% of such IDs are vulnerable this year. Tyfone's connected smart-card enables "Request-Challenge-Response," thus adding an additional, seamless layer of authentication. Think of this as working like a private key to your safety deposit box in the bank. Even if cyber thieves are able to break into the bank vault or in this case secure server, the password alone will not unlock the safety deposit box or approve the transaction without the private key. Well I think I got that right. LOL! Best to watch the video below or visit their site to learn more. It seems to me that Tyfone would do well to get in the Loop, literally! This could be a potent 1-2 punch!