Mobile Money
One major point in favor of Serve is the American Express brand behind it. As money continues to evolve into a truly mobile and fluid digital currency, trust will be a key factor for consumers and merchants alike. Creating a Mobile Money platform from scratch without a trusted brand and reputation is not impossible – PayPal has proved that, but it will probably be easier for Serve to gain traction than some of the new entrants.
Square
Square is a disarmingly cute little, square (of course) card reader dongle and app for iPad and iPhone and Android devices. Imagine this scene: It’s time to pay the tab and Friend #1 turns to Friend #2 and says: “Sorry bud, but I don’t have any cash with me, too bad you don’t take credit cards…” To which Friend #2 says: “Well, actually, I do, or rather, my iPhone does.” And then Friend #2 pops the little white dongle into the audio jack on their iPhone and swipes Friend #1’s credit card through it, enters the amount, his friend signs off on it and voila! Cash changed hands. It’s not that different than when you return your rental car and there’s an attendant waiting in the garage with a card-reader and printer on their belt. They swipe your card and the transaction is done right there. With Square, you’ll be able to accept payment from anyone with a credit card, on the spot. A transaction costs 2.75% of the amount swiped.
NFC or “Near Field Communication”
NFC is a communications technology for cell phones (similar to Bluetooth) that enables wireless transactions between the user’s phone and another NFC-equipped device, such as a vending machine or ticket kiosk. As with other communications protocols, NFC has been vetted by standards bodies since 2003, and is widely embraced by the cellular carriers, chip and handset makers and important players like Google.
A huge amount of infrastructure has already been laid for the roll out of NFC transactions, and there are currently 30 plus trials underway around the world, including half a dozen in the US with big players like MasterCard, Visa, Bank of America, AT&T Mobile and 7-Eleven. It’s possible that NFC is just too geeky a name to catch on with consumers, and that just as WiFi was originally called “802.11”, NFC will get a friendlier moniker soon, as big players with different NFC applications roll out their brands.
Dwolla
Dwolla is a free web-based software platform that allows users to send, receive, and request funds from any other user, with a 25 cents per transaction (max) charge. It is designed to integrate with social networks like Facebook so that money can be transferred, even to someone without a Dwolla account set up, and without immediate access to a bank to certify the transaction. Dwolla will have a POS (Point of Sale) presence enabling users to make purchases without having to carry a credit or debit card, and will also become an alternative to PayPal and Serve for online commerce.
