MobilePayUSA – Your Phone is Now Your Wallet

Mobile payment applications have been getting a lot of hype lately.  The concept is pure genius since many people never leave their phone at home, but easy forget their bag or wallet. Imagine a world where you can hit up the coffee shop with only your phone in hand. It’s closer than you think.

DefinedLogic had the opportunity interview a representative from MobilePayUSA to learn more about their mobile app that work’s with any merchant’s Point of Sale (POS) system without requiring any new hardware, software, use of bar codes, or Near Field Communications (NFC) technology.

Our Interview:

DL: How does MobilePay USA work?
MPU: MobilePayUSA is a mobile payment and marketing app that seamlessly integrates with merchant POS systems. Unlike our competitors our app operates without the need for any new hardware, software, or 2D barcodes. It is a cloud-based technology that allows payment as fast as swiping a credit card. This is a key differentiator in the market… the ability to integrate rapidly across all merchant POS systems without requiring software.

DL: So this app does not use NFC (Near Field Communications)?
MPU: Yes, we do not use NFC technology, which sets MobilePayUSA apart in the mobile payment space. Instead we have a patent pending method that unlike NFC, does not transmit payment card data from the phone to the merchant. NFC ‘s  “in-transit” payment card data submission to the merchant makes the data susceptible to hack attempts like what was observed in the 2008 incident with Hannaford Brothers supermarket chain. Others have also noted that while a pure hardware model for NFC is not likely to succeed due to security concerns, even a hybrid model utilizing a wallet app to disable the hardware until purchase will still suffer from the in-transit concerns and be susceptible to malware installed by the user on the phone unknowingly. Our unique method for coupling the mobile transaction to the merchant’s POS is another key differentiator for the MobilePayUSA technology.

DL: What mobile platforms is it available on?
MPU: MobilePayUSA is currently conducting a private pilot on the iPhone platform and the app will also be available on Droid, Windows Phone 7, and Blackberry.  There will also be a web browser version.

DL: Will you be releasing the MobilePayUSA app in stages: iPhone first, Android second, etc.? Or will it be available on all marketplaces at a set release date?
MPU: We are planning to release all platforms at the same time. Public beta will begin in Q4.

DL: How does a retailer accept payments via MobilePayUSA?
MPU: We have four unique methods to provide the merchant with a POS interface that will allow them to accept payment from their existing equipment. One method is demonstrated in this video.

DL: How many merchants currently accept payments through MobilePay USA?
MPU: Tutti Frutti on Balboa Island, CA was the first merchant to be boarded and we are currently in private pilot with a number of merchants soon to be boarded in Orange and San Diego counties.

DL: How can MobilePay ensure that a customer’s payment information remains secure?
MPU: We have several layers of security on our system, the first being that all of the financial transactions are securely handled by our banking partner, TrustCommerce, which has been a payment leader for 30 years. Our security is another way that MobilePayUSA is set apart. MobilePayUSA does not store the credit card numbers on the phone or ever shares that data with the merchant. This means if the phone is lost or the system is hacked, our customers’ information remains secure. The tokenized version of the payment card information that is run through the platform is useless to anyone outside of our system.

DL: There are several mobile payment apps on the market – what features makes MobilePay USA different from the competition?
MPU: The lack of costly hardware upgrades, the described security differences, as well as our platform’s robust and versatile nature make MobilePayUSA a completely different way to do mobile payments.

DL: Being that mobile payment is a relatively new concept, what limitations/constraints have you come across during the creation/testing of your application?
MPU: Like any new technology, adoption is always the biggest hurdle. Merchants, consumers, and industry executives are so used to the plastic card transaction that it has taken and will take some convincing to show them that our system offers advantages in terms of speed, safety, and convenience. Smart phone users are more than ready for a realistic solution to the mobile payment demand. We feel that MobilePayUSA is that solution.

DL: How will you tackle the issue of dead spots? Being that the credit card/bank account info is not stored on a device, the phone will need to connect to the banking system storing the information. Do you see complications arising if a customer attempts to pay with MobilePay in an area where connections are not speedy?
MPU: We have a contingency plan for merchants that encounter dead spots with their Wi-Fi, and we are currently ironing out its details.

DL: What’s your prediction for the future with mobile payment apps?
MPU: We feel that the future of mobile payments is an exciting one, limited only by the imagination of those working in the field. Thanks to the robust and scalable nature of our platform, we plan on rolling out new features on our app to make the shopping experience a continually evolving process that meets both merchant and consumer demands. We have many wonderful surprises in store for our customers after our public beta is complete.

For more information on MobilePayUSA watch the video below and visit their official website at http://www.mobilepayusa.com/.

MobilePay Video from MobilePay USA on Vimeo.