May 18, 2010
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News: Visa Test In2Pay
It's all about new technology. Just when we think technology has reached it max, we learn of an entirely new process never before imagined with a new team of players. The latest arena is that of the credit card industry. A flood of new credit card payment processing systems and card reader devices that turn the mobile phone into a card processing device have sprouted up over the past several months. There's Jack Dorsey's Square, Del Conte's Inner Fence, Verizon's Charge anywhere just to name a few, and now there's Visa's In2Pay. Visa's contactless debit and credit card payment system utilizes a micro SIM card with a built in Near-Field Communications (NFC) chip. The In2Pay chip is an external device that sits within its own case that supports the chip's power and operates with the iPhone
Consumers who sign up for Visa's In2Pay, would have the capabilities of paying via debit and credit card simply by holding the iPhone up to a compatible reader. The system can even work when no cashier is around for example at vending machines. The beauty of the In2Pay system is that it would no longer require that an individual carry around a purse or wallet. Unlike the Square device which plugs directly into the iPhone and requires customers swipe their traditional credit card with the magnetic strip, the In2Pay transmits the card information electronically without physically needing to make contact between the card and the device. Visa boast that the new system provides enhanced security and makes it more difficult for thieves to steal personal information.
As Visa prepares to test the new debit and credit card payment processing system, the company also readies itself for the battle in market share in a new business environment. As more mobile phone manufactures team up with electronic payment processing companies, consumers can expect to see a wider market and a full range of products to choose from.