With the smart phone market’s continuing growth, it was only a matter of time before payment apps were developed. According to kmov.com’s “Pay-by-Name Purchasing: Changing the Future of Spending,” one of the newest forms of mobile payments is the Square Card Case, launched by Twitter co-founder Jack Dorsey’s Square.
“The Square Card Case totally eliminates the need for a physical card in a merchant-to-consumer transaction. It works by storing a virtual copy of your credit or debit card on your smartphone, and acts as a virtual tab. To use it, consumers must download the free Square Card Case application for the iPhone, iPad, iPod Touch or Android. A customer then sets up an account using their name, email address, credit card information and a photo. The customer’s phone will detect local merchants who accept the Card Case form of payment.”
Needless to say, security is a concern, an issue raised in an open letter from VeriFone, a Square Card competitor. The market’s also getting crowded with Google’s Google Wallet and PayPal’s PayPal Instore, both of which use near-field communication technology. This is definitely an emerging market with plenty of potential. The payoff will be big for a player who can address security and ease of use while creating a mass-market brand.
Rita Safranek, January 10, 2012