Mobile Payment

RedHerring has an interesting interview with Mark Friedman, Peppercoin.

Mark explains nice business case behind Mobile payment

One of our merchants is Duncan, the world’s leading provider of onscreen parking solutions. They’ve got 60 percent of the U.S. market. One of the capabilities that we enable for Duncan is a mobile payment for motorists.

 

“Let’s say you parked at a Duncan parking meter using your credit card. You paid for two hours of time an hour and 15 minutes ago, and your meter is about to expire. What we enable is you get an SMS [short message service] text message sent to your phone before the meter expires.

 

By hitting the right combination of keys on your mobile device, you can top up the meter remotely and it’s charged to your credit card. That’s an interesting example of mobile payments.”

To the quesiton : How do you see yourselves evolving?

Mark Friedman says :

……

First we evolved from micropayments, which you would define as $5 and under, to small payments of $25 and under. The reason we did that is because in discussions with card associations like Visa and MasterCard, and the large banks, they were all putting together strategic initiatives at the $25-and-under market, the small-payments market, and they needed a cash replacement. That’s how we evolved.

 

We built up a capability that not only allows us to do the online market, but more importantly, allows us to get to mobile and the biggest market, which is the point-of-sale market. Our approach today is to offer a hosted service to merchants that we extend into the payment system.

 

But what we really want to do is license our technology to the banks and the payment companies so they can offer this capability directly and run it themselves. Our biggest competition is the build vs. buy decision that the banks and payment companies will face.

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