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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?




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.

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 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 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

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.


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

Snap a business card pic, Microsoft app finds ’em on LinkedIn

(TECH NEWS) Microsoft Pix is teaming with LinkedIn in a neat way that will benefit networking, especially if you have any lazy bones in your body.



microsoft pix

Have you ever been watching some sort of action-adventure movie where there’s a command center with all sorts of unbelievable technology that kind of blows your mind? Well, every day we come closer and closer to living within that command center.

You may think that I’m talkin’ crazy, but check this out – there is a new technology that can scan a business card, and find the business card’s owner on LinkedIn. (Can I get a “say what????!”)

This app is courtesy of Microsoft and goes by the name Pix (it’s not new, but this function is).

The way it works is simple: Bill Jones hands you his business card, you fire up the Pix app (currently only on the iPhone. Sorry, Droids), you snap a picture of the card and the app takes the details (phone number, company, etc.) and finds Bill on LinkedIn. Bingo.

It also will automatically take that information and will create a new profile for Bill Jones within your phone’s contacts. After you scan the business card through Pix, Microsoft will ask if you want to take action.

At this point, Pix will recognize and capture phone numbers, email addresses, and URLs. If your phone is logged into LinkedIn, the apps will work together to find Bill’s profile. Part of me wants to think that this is kind of creepy but a larger part of me thinks that it’s really cool.

According to Microsoft Research’s Principal Program Manager, Josh Weisberg, “Pix is powered by AI to streamline and enhance the experience of taking a picture with a series of intelligent actions: recognizing the subject of a photo, inferring users’ intent and capturing the best quality picture.”

“It’s the combination of both understanding and intelligently acting on a users’ intent that sets Pix apart. Today’s update works with LinkedIn to add yet another intelligent dimension to Pix’s capabilities.”

Pix itself originally launched in 2016 as a way to compete against AI’s ability to edit a photo by use of exposure, focus, and color. This new integration in working with LinkedIn is a time saver, and is beneficial for those who collect business cards like candy and forget to actually do something with them.

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Tech News

Walmart and the blockchain, sitting in a tree

(TECH NEWS) Say goodbye to #foodwaste with Walmart’s new smart package delivery proposal featuring everyone’s favorite pal, blockchain.




Following the trend of adding “smart” as a prefix to any word to make it futuristic, Walmart now proposes “smart packages.” The retail giant filed for a new patent to improve their shipping and package tracking process using blockchain.

Last week, the U.S. Patent and Trademark Office (USPTO) released the application, which was filed back in August 2017.

Officially, the application notes the smart package will have “a body portion having an inner volume” and “a door coupled to the body portion” that can be open or closed to restrict or allow access to the package contents.

In other words, they’ve patented a box with a door on it that also has lots of monitoring devices.

Various iterations lay claim to all versions of said box include smart packaging utilizing a combination of monitoring devices, modular adapters, autonomous delivery vehicles, and blockchain.

Monitoring devices would regulate location tracking, inner content removal, and environmental conditions of the package like temperature and humidity. This could help reduce loss of products sensitive to environmental changes, like fresh produce.

Modular adapters perform these actions as well, and also ensure the package has access to a power source and the delivery vehicle’s security system to prevent theft.

Blockchain comes into play with a delivery encryption system, monitoring, authenticating, and registering packages. As it moves through the supply chain, packages will be registered throughout the process.

The blockchain would be hashed with private key addresses of sellers, couriers, and buyers to track the chain of custody. Every step of the shipping process would be documented, providing greater accountability and easier record keeping.

This isn’t Walmart’s first foray into the world of blockchain. Last year they teamed up with Nestle, Kroger, and other food companies in a partnership with IBM to improve food traceability with blockchain.

Walmart also took part in a similar food tracking program in China with last year as well.

And let’s not forget Walmart’s May 2017 USPTO application to use blockchain tech for package delivery via unmanned drones. Their more recent application builds on the drone idea, which also proposed tracking packages with blockchain and monitoring product conditions during delivery.

In their latest application, Walmart notes, “online customers many times seek to purchase items that may require a controlled environment and further seek to have greater security in the shipping packaging that the items are shipped in.”

Implementing blockchain and smart package monitoring as part of the shipping process could greatly reduce product loss and improve shipment tracking.

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Tech News

Experts warn of actual AI risks – we’re about to live in a sci fi movie

(TECH NEWS) A new report on AI indicates that the sci fi dystopias we’ve been dreaming up are actually possible. Within a few short years. Welp.



AI robots

Long before artificial intelligence (AI) was even a real thing, science fiction novels and films have warned us about the potentially catastrophic dangers of giving machines too much power.

Now that AI actually exists, and in fact, is fairly widespread, it may be time to consider some of the potential drawbacks and dangers of the technology, before we find ourselves in a nightmarish dystopia the likes of which we’ve only begun to imagine.

Experts from the industry as well as academia have done exactly that, in a recently released 100-page report, “The Malicious Use of Artificial Intelligence: Forecasting, Prevention, Mitigation.”

The report was written by 26 experts over the course of a two-day workshop held in the UK last month. The authors broke down the potential negative uses of artificial intelligence into three categories – physical, digital, or political.

In the digital category are listed all of the ways that hackers and other criminals can use these advancements to hack, phish, and steal information more quickly and easily. AI can be used to create fake emails and websites for stealing information, or to scan software for potential vulnerabilities much more quickly and efficiently than a human can. AI systems can even be developed specifically to fool other AI systems.

Physical uses included AI-enhanced weapons to automate military and/or terrorist attacks. Commercial drones can be fitted with artificial intelligence programs, and automated vehicles can be hacked for use as weapons. The report also warns of remote attacks, since AI weapons can be controlled from afar, and, most alarmingly, “robot swarms” – which are, horrifyingly, exactly what they sound like.

Read also: Is artificial intelligence going too far, moving too quickly?

Lastly, the report warned that artificial intelligence could be used by governments and other special interest entities to influence politics and generate propaganda.

AI systems are getting creepily good at generating faked images and videos – a skill that would make it all too easy to create propaganda from scratch. Furthermore, AI can be used to find the most important and vulnerable targets for such propaganda – a potential practice the report calls “personalized persuasion.” The technology can also be used to squash dissenting opinions by scanning the internet and removing them.

The overall message of the report is that developments in this technology are “dual use” — meaning that AI can be created that is either helpful to humans, or harmful, depending on the intentions of the people programming it.

That means that for every positive advancement in AI, there could be a villain developing a malicious use of the technology. Experts are already working on solutions, but they won’t know exactly what problems they’ll have to combat until those problems appear.

The report concludes that all of these evil-minded uses for these technologies could easily be achieved within the next five years. Buckle up.

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