Mobile Payments Get Currency

The FTC is looking at mobile payments this Thursday, an event that caps several weeks of intense attention to this innovative new technology by policymakers. In March the House Financial Services Committee and the Senate Banking Committee held hearings. And the Internet Caucus held a Congressional briefing, which I chaired.

Several years ago a study by ITIF highlighted mobile payment’s opportunities for efficiencies, growth and innovation. It wondered why it hadn’t taken off in the US, the way it had in other jurisdictions such as Japan and Korea. Since then Square, Intuit, Google, ISIS, PayPal have all ramped up their efforts to bring the new service to consumers and retailers in an attractive easy to use package. The majority of Americans will be embracing mobile payments by 2020, a Pew Internet study found last week.

The benefits are enormous. Mobile payment technology means faster checkout, more through put for merchants, the opportunity to send and receive offers and promotions, greater security, and a platform for new innovative services that haven’t been created yet.

It is worth pausing on the benefits of increased security. Unlike traditional magnetic stripe payment card transactions, mobile payments use a different security code for each transaction. Even if the transaction data is compromised, it cannot be used to make a counterfeit card that would work at the point of sale. This takes the merchant system out of harm’s way and reduces risk to cardholders. Mobile payments implemented on a smartphone can also be protected by a password or PIN number, adding barriers to illicit use of a lost or stolen phone. If asked to choose based on security, shoppers would be smart to use mobile payments over traditional cards.

Some have suggested that mobile payments create increased privacy risks because new information would be available to new players. But these risks are speculative and are being addressed in advance by market players who design their systems to be privacy-protective. They know that the market will only work on the basis of trust, careful handling of personal information, and a compelling user experience.

Mobile payment providers collect location information from their users, but only with affirmative consent. Product specific information isn’t collected at all and so cannot be added to a consumer profile to target ads. Cell phone and email information are available to mobile payment service providers at the time of sign up, but are not transferred to third parties such as retailers. Mobile payment services are savvy enough to avoid the mistake of allowing secret, undesirable acquisition of contact information by third parties. Under the Google Wallet rules, for example, contact information could not be disclosed to a retailer for marketing or advertising purposes without affirmative consent.

The privacy default for mobile payments is that consent is needed for any sharing of consumers’ personal information for marketing purposes. Industry participants have set up their systems with this requirement for consent as the default. This privacy-by-default approach renders concerns about privacy violations more theoretical than real. Mobile payment users can feel confident that they can enjoy the conveniences and added security and usefulness of mobile payments without worrying about privacy violations.

Mark MacCarthy, Vice President, Public Policy at SIIA, directs SIIA’s public policy initiatives in the areas of intellectual property enforcement, information privacy, cybersecurity, cloud computing and the promotion of educational technology.

SIIA All About the Cloud Video Preview

Check out this video preview of what’s to come at SIIA’s All About the Cloud 2012.

Katie CarlsonKatie Carlson is Program Manager for the SIIA Software Division.

All About Mobile Goes Hybrid

All About Mobile Goes Hybrid – Check out this video promotion featuring Rhianna Collier, Vice President of the Software Division at SIIA as she discusses the two ways to hear from our amazing line up of speakers. Taking place in San Francisco, CA November 15, 2011 click here to learn more about the conference and learn how we are accommodating the mobile workforce.

Trends of 2012: An Interview with SIIA

Rhianna Collier, Vice President of the Software Division at SIIA, catches up with Matt Childs of DreamSimplicity in this video interview at Dreamforce 2011. Many of the customer trends discussed by SIIA’s members at Dreamforce will be broadcasted and examined at SIIA’s All About Mobile conference taking place in San Francsico, CA November 15, 2011. Click here to learn more about the conference.

The Cloud Channel Summit: Examining the Evolving Role of the Channel in the Cloud

SIIA is pleased to support the Cloud Channel Summit, which will bring together industry leaders to examine the emerging channel opportunities in the Cloud Computing market. Taking place Monday, November 7th at the Computer History Museum in Mountain View, CA, the Summit will provide a forum for senior executives from leading Cloud vendors and channel companies to define the role of the channel in the Cloud and create best practices for forging successful partnerships for both Cloud vendors and their channel counterparts.

Host Jeff Kaplan, Managing Director of THINKstrategies and founder of the Cloud Computing Showplace, will steer the Cloud Channel Summit to enable Cloud vendors to increase awareness about their channel programs. Participating industry visionaries include:

  • Stephen Cho, Director of Channel and Business Development, Google Enterprise
  • Peter Chase, Founder & EVP Business Development, Scribe Software
  • Eileen Boerger, President, Agilis Solutions
  • Daniel Saks, President & CEO, AppDirect

Plus, SIIA’s VP of Software, Rhianna Collier, will moderate a panel on “Real-World Cloud Success Stories.” The SIIA community can save 10% when it registers for this event with the special discount code SIIA117. And remember, don’t miss SIIA’s All About Mobile event November 15th in San Francisco, CA, where we’ll take the next great leap in the evolution of software and services by helping providers better understand how they can more effectively deliver business cloud services and enterprise mobile applications.

The enterprise goes mobile: An interview with SIIA

Rhianna Collier, VP of the Software Division at SIIA, is featured in this blog post about how mobile applications are reshaping the way companies do business. Many of these topics and more will be featured and discussed at the upcoming All About Mobile conference taking place in San Francisco, CA November 15, 2011.

SIIA Issue Brief: Native App or Web Site?

Native App or Web Site?
Deciding Your Next Step in Mobile

Authored by:
Paul Moceri, Deloitte
David Smud, Deloitte
Daniel Vitulich, Deloitte
Nolan Wright, Appcelerator

The next installment in SIIA’s Issue Brief series discusses the wide variety of options to publish a free mobile app. The following quick reference chart covers a number of factors you should consider when choosing your route.

Download the complete paper for an in-depth review of these factors, along with use cases and more!


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