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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.

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Palm is a tiny phone that pairs with your giant smartphone

(TECHNOLOGY) Nokia’s new Palm mini-phone release encourages endless Honey I Shrunk the Phone jokes.

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My current phone is dangerously close to being excluded from regular software updates. However, I have no real intention of purchasing a new one until crucial functions become unusable. There’s so little storage that if I want to install a new app, I have to delete one.

Yet I hold on to my increasingly historical device because I love how tiny it is compared to everything else on the market. Larger screens are no longer a novelty. It’s now the norm to have a five inch screen at a minimum.

But Palm has something different in mind. Yes, Palm as in the same people who brought you the now defunct PalmPilot. Mobility-loving users rejoice, they have risen from the ashes of the technology graveyard to bring you a new miniature innovation.

Palm released a eensy teensy credit card sized “ultra-mobile companion device” creatively called Palm. This cute little pal’s screen measures a mere 3.3 inches and weighs just over two ounces.

It easily fits in your athleisure wear, clutches, wallets, and even bike mounts. Palm is meant to help you out in times when your “big phone” is too gigantic for whatever you’re doing. Hold up, don’t we already have smartwatches for that?

Well, yes. But the tiny device boasts several features absent in smartwatches, including rear and front facing cameras, full keyboard messaging, and an expanded accessory ecosystem. The adorable companion even has facial recognition and customizable notification settings. Plus, if you’re not a watch person, Palm is a non-wearable alternative.

So that’s all neat, but is this all just a gimmick to convince you that your giant smartphone needs a baby smartphone friend? Well, that depends on your lifestyle.

If you’re frequently using your phone on-the-go or simply want a technology detox, this device may be the thing for you. It makes your phone more like a fun toy to check sometimes instead of a huge screen that sucks the life out of your waking hours.

But if you’re constantly on your phone and always prefer the bigger screen, you’ll want to stick with your current device. Or give one to your kids to use as an American Girl Doll accessory.

The device starts at $349 and pairs with your existing phone, but comes with an additional $10 charge since it has its own cellular radio. Palm syncs with Android and iOS and is currently available in the U.S. exclusively through Verizon.

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Remote job search site literally copied & pasted competitor’s entire site

(TECH NEWS) What happens if someone copies and pastes your site into their own site, then charges users for it? Besides rage… ?

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Despite the fact that plagiarism has been a no-no with very serious potential consequences since middle school for most people, some folks didn’t get the memo. One group of individuals even went so far as to copy a competitor’s entire website and publish it as their own, raising the question: just how much idiocy do you have to remain alert for?

This egregious case of copy-and-paste innovation started when a new company by the name of Jobscribe went live on Product Hunt. After spending some time in the spotlight, the company’s apparent plagiarism was brought to light by Product Hunt user Robert Williams in a review left on the Jobscribe announcement page – Jobscribe had duplicated Williams’ site Folyo — right down to the site copy and testimonials — and published the content on their own domain. Then had the gall to announce their launch on Product Hunt.

You can’t make this stuff up.

It’s easy to look at what happened to Folyo as an isolated incident, but this kind of “sharing of ideas” happens to businesses on a much more frequent basis than one might assume. In an era where everything is online and innumerable new sites are published every second, it’s all too easy for a competitor to steal your hard work and publish it as their own service.

Sadly, there isn’t much you can do after the fact; besides reporting the site to their web host for plagiarism and making a visible statement on your site (and social media if applicable), you’ll simply have to wait for the “competitor” to have their version of your content taken down. Steps you can take to mitigate some of the damage before instances like this even happen include patenting your service and brand before going live, but that won’t help you if you’re already a victim of plagiarism.

If you visit the Jobscribe website, it’s gone, and you get a note from GoDaddy that the site is parked. Adios.

Not so fast – if you visit the Jobscribe page on Product Hunt now, you’ll find that the page redirects to something called Worklead, a service which offers a functionality similar — though this time, not identical — to Folyo’s original purpose. Additionally, users have complained that the “free” service costs $5 (not a large sum, but indicative of the continued shady tactics the company employs).

Unfortunately, while the site’s copy has clearly been changed (arguably for the worse), the damage is done with little in the way of recourse for Folyo’s creator, and there’s no reason to believe that Worklead’s services will offer clients anything other than a lighter wallet.

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Tech News

Facebook Ads Manager unreliability keeps dumpster fire rep alive

(SOCIAL MEDIA) The Facebook Ads Manager isn’t exactly reliable, refunds aren’t offered, and social media practitioners hate the (still) necessary evil.

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If there is one thing upon which we can rely when it comes to Facebook, it’s disappointing us. Sure, it is clear that the platform has done amazing things to connect people from all over the world. It allows the sharing of passions, photos, ideas, lifestyles, and pointlessly hilarious memes. But we have all glimpsed the dark underbelly of the social media giant.

Facebook regularly shows us the ugliest side of ourselves. This is a topic that is covered ALL. THE. TIME. How many of us have expressed our regret that Auntie posted insensitive views with the same pride she shares her great-grandchild’s first touchdown in the junior divisional beauty pageant and peewee football game?

But the content created by users is not Facebook’s latest letdown.

Ad buyers are regularly unable to see the analytics of their campaigns. For example, on October 29th, a number of digital media professionals found the Facebook Ads Manager to be unresponsive for hours. This lapse in availability is devastating to those who purchase ad space. This was aggravated by the fact that many campaigns were time sensitive, as they focused on the midterm elections.

Further, online advertisers rely on instant feedback and data to inform their next decisions. Many have expressed that the October 29th outage is a fairly regular occurrence with Facebook and continues to make their jobs nightmares.

Additionally, refunds were not offered for the time advertisers had purchased and not been able to use.

This recent occurrence appears to be the longest shutdown of FB Ads Manager, contributing to the dumpster fire of a reputation Facebook ads have cultivated.

We continue to ask – how can such a wealthy and dominating platform not get this issue into check? Or is it part of a broader design to lower expectations and soak up money like an adult child living in their parent’s basement, with no end in sight?

Facebook continues to decline commenting on their unreliability. Perhaps they know that all the Baby Boomers and Gen Xers will continue to use, share, swoon, and offend regardless of internal issues, and that advertisers will not (for some time) be able to subsist without reaching these groups.

For now, it seems Facebook is still in the driver’s seat. Whether or not they know how to drive this dumpster on wheels is another matter.

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