Could Mobile Payments Get a Boost from Lowly Stickers? (NetBanker)

Even though I have credit cards from Citibank, Wells Fargo, US Bank, American Express and Chase, I have never been offered the opportunity to add contactless payment capability to my card, so I still haven't experienced that particular wave of the future firsthand.

But it hasn't been too high up on my list of things to try, since it still requires carrying a piece of plastic or an additional device such as key-chain fob (inset). I don't see much benefit to tapping a piece of plastic compared to swiping it.

However, I do look forward to NFC-enabled mobile phones. But given the hurdles for adoption among carriers, payment processors, and issuing banks, I wasn't expecting that much before the next summer Olympics.

But now an interim workaround is being tested around the world: the contactless payment sticker. It's a quarter-sized sticker you plop on the back of your mobile phone making it instantly payment-enabled.

That allows consumers to leave their wallets at home, a nice benefit for outdoor enthusiasts, club goers, or anyone who doesn't want to worry about losing their wallet while on the go. Of course, we'll need a few million more contactless-enabled merchants before the wallet-free world is realistic for most, but widespread use of stickers could move that along (see note 1).

Who has it?
There are several rollouts under way around the world. For example:

Turkish banking giant GarantiBank recently won an industry-innovation award for its RFID sticker (press release). The sticker is produced by On Track Innovations. The bank began a pilot a year ago with several thousand Turkish customers.
Silicon Valley-based Blaze Mobile says it will be delivering a Blaze Debit MasterCard with PayPass payment sticker to subscribers of its $4.99/mo Blaze Wallet this month.
Though not yet connected to a major credit card, Malvern, PA-based USA Technologies launched its Pay Dot contactless sticker this spring (press release).

Note:
1. There are about 110,000 PayPass merchants worldwide, less than 1% of the 25 million locations that accept regular MasterCard cards.

Comments (6)

Jeffry Pilcher:

PayDot needs to redesign its artwork to be taken seriously. I assume each bank can/will use their own artwork when they become a PayDot customer, but that sticker isn't going to help sell the concept.

Posted by Jeffry Pilcher | August 21, 2008 7:07 AM

Posted on August 21, 2008 07:07

Karl Kraus:

You might also want to add the offering from the Mobile banking provider - TYFONE I believe they use an integrated miniature antenna and contactless, smartcard/NFC controller and have Mobile Banking!

http://www.tyfone.com/solutions.html

Karl

Posted by Karl Kraus | August 21, 2008 12:48 PM

Posted on August 21, 2008 12:48

Manju Murthy:

I agree with your observation that contactless stickers can help workaround the deadlock between banks and telcos. It will be interesting to see whether the above companies (or others) find a way to scale their offerings where by these stickies become a more sustainable offering.

Manju

Posted by Manju Murthy | August 21, 2008 10:15 PM

Posted on August 21, 2008 22:15

Rick Rademeyer:

Is the phone required for the sticker to work?

Posted by Rick Rademeyer | August 22, 2008 5:44 AM

Posted on August 22, 2008 05:44

Glen Turpin:

Jim, you may also be interested to know that First Data is introducing a contactless payment technology at the Democratic National Convention. It will appear in the form of a commemorative pin at the DNC, but stickers, wrist bands and other form factors are available.

For more information, see http://tinyurl.com/go-tags

Full disclosure: I work for First Data.

Posted by Glen Turpin | August 22, 2008 2:17 PM

Posted on August 22, 2008 14:17

Nancy Gross:

Jim, Heartland Payment Systems, one of the nation's largest payments processors, brought payment by contactless tag to North America last fall when it launched an innovative program at Slippery Rock University in Slippery Rock, PA. This program is now being rolled out across the country. You can read more about it at www.OneCardGivesBack.com/SRU.

Thanks. Nancy www.HeartlandPaymentSystems.com
www.MerchantBillOfRights.com
www.OneCardGivesBack.com

Posted by Nancy Gross | August 30, 2008 8:16 PM

Posted on August 30, 2008 20:16