Faryl Ury, Spokesperson, Square:One, easy credit card acceptance: A business can get up and running with Square quickly, easily and cheaply. For someone like a cab driver or jewelry maker who has never been able to accept credit cards before, Square opens up a whole new way to get paid and increase sales. Two, analytics: Traditionally, many companies, large and small, have had no way to track important sales information. Square's free analytics give our customers greater insight into their numbers so they can make better business decisions. And finally three, better relationships with customers: With Square Wallet, customers can discover local businesses, pay with their name, participate in loyalty programs, and even send gift cards. This allows businesses to develop better relationships with their clients because people spend less time focused on paying, and more time getting to know neighborhood businesses.
Mobile Payment Solution Security and Compliance Concerns
What about security? Don't smartphones pose a security risk?
Metzger: Arguably smartphones pose a potential security risk. They use open operating systems designed to allow software developers an easy platform to rapidly deploy useful applications to a wide range of end users. This openness can certainly expose risk to privacy and data security. However, certain technologies are helpful in reducing the potential risk, such as point to point encryption (P2PE) and tokenizing the card numbers stored within the mobile application.
The card issuing brands and PCI council have released a number of guidelines for developing payment applications that provide developers with a good framework for securing payment related applications, but the continued absence of mandated standards still allow circumvention of these guidelines.
While the industry has not demanded compliance, a few companies, such as PayAnywhere, are trying to be at the forefront of security and take the initiative on their own to have outside third parties validate compliance to these guidelines.
Bank of America Mobile Pay Tom Bell, CEO, Bank of America Merchant Services:Security and privacy are always the top priority. Merchants' customers have to trust that their payment information is being handled safely and securely. With Mobile Pay, data is encrypted within the card reader itself, and no data is stored either on the reader or a merchant's smartphone. We've also designed our reader with a wider card swipe path, to ensure the merchant isn't swiping a card three or four times to get a good swipe. And we've designed the reader so that it securely clamps to a user's phone, to make that swipe process easier.