Recently DevelopmentNow, a local mobile app development rockstar published this article on their blog detailing the rise of Isis, a new mobile payments project to make the existing encrypted mobile payment network accessible via cell phone. Yes, you will no longer need your wallet to access your bank account. Just when you thought you've downloaded your last app on your smart phone . . .
The implications of this technology are great, not the least of which is the impact it'll have on sales volume for any company that chooses to accept this form of payment. As any sales person knows, the less obstacles between your customer and their wallet, the more sales you're going to make. Now they won't even have to go to their wallet!
Just as this technology can make it easier to buy, it also makes it easier for someone to buy fraudulently. Mobile phones just got a lot more valuable. Losing your wallet to a thief used to be an inconvenience, you could just call the card companies and cancel the card numbers. If a theif steals a phone using this technology, now you have one less way to call your card companies to cancel your cards! Who even has a house phone anymore?
To business owners, this could translate to higher chargebacks. Just as if someone uses a stolen card at your business to pay for something, without the proper security on your card terminal, this could result in higher chargebacks and processing fees. Be careful - checking ID isn't just for selling alcohol!
Soon paying "out of pocket" will be obsolete. I'm wary, but in favor, of paying "out of the cloud". Just make sure that it's your customer's cloud, and not someone else's.
Matt Koren is the President of Priority Payments Northwest, a Merchant Services Provider located in Portland, OR. He runs his company in addition to his management consulting practice as an Associate with Causeit, Inc. You can contact him by filling out the Contact Us page, or by calling 866-402-1485.