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Why mobile payment systems aren’t catching on

Mobile payment platforms offer convenience, enhanced security, and more, so why aren’t more customers using them?

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Mobile payment systems and adoption rates

Samsung’s new mobile payment system, scheduled to release this summer, will solve on of the biggest limitations of Apple’s mobile pay system: the ability to work anywhere. Samsung’s system will work even at the millions of old-fashioned checkout terminals that don’t have a wireless connection.

While this is definitely a step in the right direction, Samsung faces a different, although equally serious, problem: none of the major mobile phone carriers have announced the pre-installation of Samsung’s software, meaning customers may have to add it on their own.

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Apple has deals with carriers to enable them to have greater control over hardware and software features. Add Google’s recent partnership deal (with formerly known Softcard) to add better pay technology to Google Wallet, and Samsung’s problems just got a bit more serious.

It’s not just Apple, Samsung is in on it, too

Samsung unveiled their new technology at the Mobile World Congress in Barcelona as part of the Galaxy S6 smartphone. The new phone will include a Near Field Communication chip, just like the latest iPhones, allowing the payment system to work wirelessly at stores with similarly equipped checkout terminals.

But, Samsung is also using the technology it recently acquired when it bought LoopPay last month. This allows a phone to send out magnetic signals, which can be registered as a swiped credit card at old-fashioned checkout registers. This allows the technology to work wherever credit cards are accepted.

Apple has seen greater success with Apple Pay than any previous mobile payment effort. But since Apple Pay requires one of the latest iPhones and only works at a fraction of U.S. retail outlets, that success is still limited. This could be one of the reason why some brands are giving away free card readers: to help adoption rates. As Matt Shultz, senior industry analyst at CreditCards.com aptly put it: “The biggest obstacles to mobile payments usage are convenience and security. Consumers are already very comfortable swiping their credit and debit cards. Most people don’t see why a mobile payments service would be quicker, easier or more secure.”

Study addresses adoption rates

A recent study by CreditCards.com and Princeton Survey Research Associates International (PSRAI) found U.S. consumers are no more interested in paying for purchases using mobile phones than they were six months ago, when Apple unveiled its high-profile pay-by-iPhone technology known as Apple Pay, according to a new poll from CreditCards.com.

The poll suggests that even though the number of mobile payments is growing dramatically, with Apple Pay becoming a dominant method, skeptics of paying by phone remain unmoved. Mobile payments in the U.S. are expected to nearly triple in the next five years, to $142 billion in 2019, according to the latest projection from Forrester Research. The fastest growing subcategory is in-person payments, like mobile wallets and are expected to grow tenfold in the next five years from $3.7 billion in 2014. Other mobile payment categories, peer-to-peer transfers, and remote transactions, are anticipated to grow more slowly.

Much of the growth will come about due to Apple Pay

Apple Pay certainly wasn’t the first mobile wallet, but Apple introduced a core of loyal followers to the concept. Peter Olynick, practice lead with Carlisle & Gallagher Consulting Group stated, “Apple Pay was a major event just because of the size, scale and number of people …the fan base, if you will…that Apple brings with it; given the size of that company, it is almost impossible for them to do anything small.”

While I agree with this sentiment, I think there’s something about Apple people, by and large, find to be innately innovative, whether it is or not. Apple lovers were anxious to test out Apple Pay just for the sheer novelty of the concept and now with multiple data breaches from companies like Home Depot and Target, people are more worried now about security, especially mobile security than ever before.

The takeaway

While mobile payment platforms offer convenience and novelty, it may be a while before consumers fully trust and understand them enough to use them with consistent regularity.

#MobilePayments

Jennifer Walpole is a Senior Staff Writer at The American Genius and holds a Master's degree in English from the University of Oklahoma. She is a science fiction fanatic and enjoys writing way more than she should. She dreams of being a screenwriter and seeing her work on the big screen in Hollywood one day.

Tech News

Jenzy helps perfectly measure your kids’ feet

(TECH NEWS) Jenzy is a mobile app currently in beta that helps you perfectly measure your kids feet and buy shoes without having to leave your home.

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Parents rejoice, there’s now a mobile app that sizes your child’s feet to determine their correct shoe size. No more carpet charts that every kid has put their dirty little socked foot on, or those weird metal sizing instruments.

With Jenzy, you just take a picture of your child’s foot, and the app calculates the measurements. It then generates personalized size and style recommendations, which you can order directly from the app.

Jenzy partners with podiatrist recommended brands designed for active kids, including pediped, Robeez, and Morgan & Milo. However, you don’t have to purchase their suggestions to receive the sizing info.

Incorrectly sized shoes are a literal pain for everyone, but this especially affects children, who don’t have purchasing power.

Additionally, shoes that don’t fit can have long-term effects on children’s growth and development, and lead to foot problems in the future. Properly fitted shoes are necessary for healthy foot development.

Wearing incorrectly sized shoes is just part of the problem. If shoes aren’t suited for every day use, children’s feet and overall growth can also suffer.

Flip flops, ballet pumps, and shoes with raised heels are not recommended by podiatrists for frequent use, as they can cause discomfort, or even musculoskeletal issues.

According to Dr. Stewart Morrison, a University of Brighton podiatrist, “children’s feet are still growing and are more susceptible to damage than adult feet, so it’s really vital to ensure they are wearing shoes which fit them well – in width as well as length – and that are suitable for age, as well as the task they are wearing them for.”

As online shopping has taken over, fewer parents are getting their children’s feet sized by in-store experts. Of course, there’s also a cost-barrier, as many stores that offer shoe-sizing are often more expensive.

Jenzy hopes to bridge that gap, providing parents both proper shoe sizes and affordable products designed to last.

Right now the app is set to launch in December, but if you don’t want to wait, apply to take part in the beta test on Jenzy’s site.

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Tech News

Time is money and Clockify helps you make the most

(TECH NEWS) Tracking your time worked as a freelancer can easily be lost in the shuffle. A new tool has been designed to make this important aspect easier.

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After years of searching for a method that works for me in terms of organization and productivity, the answer seemed to be simple: a calendar I can write on and Post-It notes. This method is a little old school, but seems to get the job done for my organizational needs.

However, there are some things that slip through the cracks with this method, but it’s more user error than it is the actual practice. One thing I struggle with is keeping track of my freelance hours this way.

I have a tendency to guesstimate how much time I worked throughout the day and know that I wind up underdocumenting my hours. I would hate to know how much money I’ve missed out on keeping (sometimes inaccurate) handwritten notes.

But, like many other small scale issues, there is a simple solution. And that is found in the form of time trackers.

One of the newest members to join the online time tracker team is Clockify, who operates under the idea of “your time, your rules.” It is a free time tracking tool designed for agencies and freelancers.

Clockify allows users to manage as many team members, projects, and workspaces that you need in an effort to help your business run smoothly. This allows for a complete overview of team productivity.

The tool offers a way to enter time manually as well as clock time automatically. This way you can keep tabs on what you’re working on and assign and label time logs to the appropriate clients.

With this time tracking, you are able to generate weekly, monthly, and annual reports at any given time. These reports can be saved, exported, and shared with clients to give them more information about your work process.

The real-time tracking helps to improve business efficiency and gives more insight into what each team member is spending their time on. Having this information available can give visual representation of how to improve in the future.

Clockify currently exists in desktop format with iOS and Android apps coming soon.

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Tech News

Russia vetoed cryptocurrency and came back with CryptoRuble

(TECH NEWS) Russia put a hard pass on other cryptocurrencies in their country so that they could hop in the crypto-game with their own CryptoRuble.

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Just days after The American Genius reported that the Russian Central Bank would attempt to block access to cryptocurrency trading cites, the Coin Telegraph has reported that the Russian government will issue its very own cryptocurrency, the CryptoRuble.

The report cited local Russian papers, who quoted the minister of communications, Nikolay Nikiforov.

Earlier this week, head of the Central Bank, Sergei Shvetsov, said that he would work with the Prosecutor General’s Office to ban Russian citizens from accessing cryptocurrencies like Bitcoin, calling such currencies a “negative phenomena for our markets” and a “pyramid scheme.”

Now it appears that the Kremlin will create its own cryptocurrency – one it can keep an eye on — which, some might argue, defeats the entire purpose of cryptocurrency.

However, like other cryptocurrencies the CryptoRuble will be based on blockchain and will presumably help prevent online fraud.

CryptoRubles will be exchangeable with regular Rubles, although the systems of exchange have not yet been set up. Experts think that Russia is hoping to stimulate e-commerce without the need for foreign money markets, which will allow them to have more independence from the United States.

According to Nikiforov, the Russian government is setting up its own cryptocurrency under the assumption that if they don’t, other European governments will.

Said NIkiforov, “I confidently declare that we run CryptoRuble for one simple reason: if we do not, then after two months our neighbors in the EurAsEC will.”

Traders using CryptoRubles will be asked to provide documentation of retail transactions and services rendered – or pay a 13 percent tax for undocumented transactions, leaving a wide loophole for money laundering.

Critics say that Russia is trying to facilitate, while also profiting from money laundering; that the Kremlin is stealing the market from other cryptocurrencies; and that the CryptoRuble fundamentally defies the spirit of decentralization that inspired other cryptocurrencies.

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