Starbucks and Square push mobile payments forward
Starbucks recently announced it has inked a deal with electronic payment service Square Inc. The international coffee chain will begin processing U.S. card transactions through smartphones using Square’s payment platform this autumn.
Such a deal will work wonders for start-up Square’s visibility, as its technology will be present in every Starbucks across the U.S. Equally, Starbucks will benefit from more agile payments systems that use mobile devices instead of having to invest in complex point of sale systems.
Starbucks is no stranger to mobile payments. The coffee chain has already been using its own in-house mobile payments technology via Smartphone apps over the last year. Their application has processed 42 million transactions since its launch. Starbuck’s own in-house payment solution and Square’s will run parallel alongside each other, but it is expected that all mobile payments will likely be moved to Square’s technology eventually.
Square’s move to partner with Starbucks could be the catalyst its business needs to expand into other establishments. It could also be the move which brings mobile payments to wider public knowledge. However, it will be the customers who decide if this venture is truly a success. Are customers comfortable with storing payment information on their phone? How many customers are technical enough to understand the technology? Will it help them get their cappuccinos and macchiatos faster?
The growth of mobile payments is expected to continue climbing over the next few years. While there are a number of debates still being had by the Smart Card Alliance concerning the direction in which technology is taking, Starbucks have made another monumental move towards a mobile payments utopia.
Related blog posts
Detecting Internal Fraud by ‘Breaking Bad’
There has been no shortage of news stories around the banking industry and its vulnerability to internal fraud, particularly that the industry has limited internal surveillance. Internal fraud has proven to be news-driven (and news-worthy); it’s a great feature lead-in story and scintillating red-meat for mass consumption. Internal fraud events are obviously a reputational risk for banks, but then take a huge turn into regulatory risk territory, before winding up squarely a legal risk (and the headline-grabbing fines that come with it). Finally, a strategic and market risk bubble up as customers are lost to competitors.
Rio 2016 – Once the Games Are Over, It Doesn’t Mean Fraud Is Over
The 2016 Rio Games are in full swing—with great story lines and unbelievable performances by incredible athletes, all being watched and admired by a million additional tourists in town (not to mention the many billions watching on TVs and computer screens).
The connected world, mobile commerce and fraud
The following Portuguese language contribution comes from one of our many talented Latin America-based colleagues and fintech experts. Based in Sao Paolo, Hugo Costa, general manager of ACI Brazil, provides some great insight into the connected world, mobile commerce and fraud.
Alarming Brazilian card fraud trends & outlandish risky behavior
In a recent report “Global Consumers: Losing Confidence In The Battle Against Fraud,” it was found that 30% of consumers have experienced card fraud in the past five years. Against a backdrop of 2,260 confirmed data breaches in 2015 and over 4 billion records stolen since in 2013, consumers are losing faith in the ability of providers to protect them.
South African card fraud trends & risky consumer behavior
In conjunction with the PASA International Payments Conference this week, we decided to take a look at some recent consumer fraud data from the host nation, South Africa. The market is very similar to the global averages, in that a shockingly high number of consumers continue to experience card fraud. Despite the number of fraud attacks and breaches, consumers in South Africa continue to engage in risky behavior such as providing information in phishing attempts and writing down their PIN numbers.
July: the hottest shopping time of the year for consumers, retailers—and fraudsters
Summer is in full swing, and while many people equate this time of year with beach-hopping and BBQs, retailers—and those of us who keep them in business— are quickly making July one of the most exciting shopping months of the year. Irresistible online sales and promotions abound, and with that, so does the risk of fraud. In fact, eCommerce fraud attempt rates in July, 2016 (1.6%) are slightly higher than fraud rates in December, 2015 (1.2%), which is the busiest holiday shopping time of the year.
Three things that it takes to be in the Fraud Management Business in 2016; a survey reflection
On the heels of ACI’s latest Consumer Fraud Survey, recurring questions have continued to solidify themes. Let me summarize the results for you: There is incrementally more card fraud, consumers are not changing their behavior all that much in reaction to it, and they expect any issues to be addressed and resolved more easily today than in years past. Of course, this is about what we should be anticipating in our “always on”, service and convenience oriented, mobile world. So, with that said, here’s what fraud management means to consumers and fraud managers in 2016.
Consumers want access Merchants want simple global and secure opportunities How to achieve both
While riding the local commuter rail on my last leg home from NYC, I sat next to a woman who was on her smartphone shopping on what looked like a Chinese website. I smiled to myself after just having spent the day talking about the massive opportunities presented in the borderless world of eCommerce. The scenario was very timely as the day’s discussion centered on providing consumers with access to goods and services and the merchants’ opportunity to serve them anytime, anywhere with the payment options they desire.
EMV in the US The picture six months on Part 2
EMV implementation – the side effects
EMV in the US The picture six months on Part 1
It has been six months since the EMV liability shift occurred in the US on October 1, 2015 – and it’s time to assess our progress, challenges and outlook.