In This Issue
Mobile Payments as a Consumer
Death of the IPOS?
The State of Mobile Processing
ProPay Recent News
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The fast pace of innovation with respect to payment processing has always been exciting.  This year, however, it seems that the pace has certainly accelerated.  Throughout the year, stories and features on mobile payments in particular have been prominent in the media and have captured the attention and imagination of both merchants and consumers. 

Mobile payments, sometimes called m-payments, are clearly the way forward. For some, though, there are some questions that linger: What are the benefits for consumers?  What might be the fate of more traditional processing channels?  And of course, what should I be leery of with respect to mobile payments? 

This issue of the ProPay newsletter tackles some of the more common questions around mobile payments.  We hope that this information is helpful to you as you develop your mobile payment strategy, as a merchant or as a consumer.  As always, please feel free to forward this newsletter to anyone that you think might be interested. 

The ProPay Team
Mobile Payments as a Consumer
by Drew Petersen, AVP, Risk Management

Mobile Payments are clearly the hot new trend and current focus of countless companies involved in just about any piece of the credit card world.  The term, 'Mobile Payments', covers such a broad array of potential products, making it difficult to understand exactly where companies are taking the industry.  There are several technologies encapsulated in the term 'Mobile Payments'; NFC (Near Field Communications), Mobile web-sites, Mobile Wallets, Wireless terminals, SMS (text) payments, and there's also been an attempt by cell phone providers to accept payments and have those added to your monthly bill.


As a consumer, I'm excited to see what advancements will be made and how they'll affect and improve my day-to-day activities; for example, a convenient and secure mobile wallet.  The ability to input all of my sensitive account data, then be able to transact using any method I choose, without fear of that data being compromised, I would be quick to adopt that functionality. A virus or malware attack on mobile devices or the possibility of phones being lost or stolen would demonstrate  a significant security issue, but if the account information were to be protected, through tokenization or encrypting, mobile payments could see increased consumer use.


Technological advancements in the financial world can be very exciting and convenient (ATM's, on-line banking, etc.) I'm looking forward to Mobile Payments and to see where the bright and creative minds in the card industry can take this opportunity.

Death of the IPOS?

by Chris Mark, Exec. Vice President, Data Security and Compliance

With the recent influx of mobile technologies and other payment methods, many are beginning to question the need for an Integrated Point of Sale (IPOS) system.  While there is no denying the value of electronic cash registers (ECR) for inventory control, ordering and other applications, the value derived from using these systems to process transactions has been diminished by the cost and effort required to ensure they are adequately secure.  Recently, Chris Justice, Ingenico's Managing Director of North America, spoke on the topic in a lecture called: "Redefining the POS" 


It is suggested that the increasingly challenging demands of securing such systems coupled with the increasingly sophisticated mobile technology, will continue to redefine who companies view point of sale applications.  Current Smartphone technology allows merchants to accomplish much of what was previously conducted over large, cumbersome point of sale terminals.  Anyone who has visited an Apple store in the past two years can attest to the value of using mobile technology to accept payment cards.  While there is a long road ahead before the industry settles on a standard, it is fair to say that the landscape is increasingly looking like alternative payment technologies will begin to supplant traditional point of sale terminals in the not too distant future.

The State of Mobile Processing

by Bryce Thacker, Exec. Vice President, Sales and Marketing

What state?  Mobile Payments are moving and morphing so quickly it's hard to discuss a "current state!"  Ironically, it's the very speed of innovation that is so exciting.  Right now, smaller merchants look to be the biggest winners.  If you're a merchant, you already have the option of processing anywhere and anytime.  You can process cards with a cool sleeve, audio jack reader, or blue tooth wedge on most Smartphones.  If you don't process a large volume, you can download an application in the ever expanding app community.  Processing will become a whole lot easier, a lot less expensive, and a lot more integrated with your efforts to grow your business.


In the very near future, you can expect to send loyal, or potential new customers, who are near your business, real-time coupons or incentives to drop-in and purchase from you.  Or, they can look through your inventory, experience what they want to purchase, and pay with the single touch of a finger from their Smartphones.  All these transactions will be tied into your back end accounting, inventory management, and customer management systems.


Make sure you're not left out.  Having this kind of regular connection with your customers and prospects will be an important part of your marketing portfolio.


Now that the digital age has caught up to payments, think of how individuals and small, home-based business owners will be able to easily pay with or accept payment with credit cards.  This has got to be the big point-of-sale terminal manufactures' worst nightmare!  The days of the $350 mobile terminals and monthly lease fees are gone.  Already, the prices for card readers are plunging and payment apps are practically free.


There is one catch-payment data security.  The unscrupulous few are already having a hay day with the lack of security around untested or poorly developed mobile payment technologies.   If you're the source of a cardholder data breach, you could lose your business' reputation and possibly, even your business.


In all the excitement, remember that you pay for what you get.  The good news is you can find card readers for under $50 now that fully encrypt the cardholder information at swipe so you don't have to worry.  And make sure any app you integrate with is secure.  Peace of mind is worth at least that much while the payment industry improves the security of apps and the identification and eradication of mobile malware.


For now, happy, secure processing this holiday season!

ProPay Provides Merchants with Multiple Mobile Payment Processing Options

Scott Nelson, Vice President, Marketing

You're a mobile merchant on the move, or in other words, a mobile sales professional, ProPay provides a powerful suite of mobile processing options. Over the next few months you'll see even more mobile offerings from ProPay. Today, ProPay offers the following mobile payment processing options.


ProPay Mobile - Merchants with a Smartphone and a ProPay Account can now process credit and debit card transactions virtually anytime, anyplace. ProPay Mobile is automatically available to all ProPay merchants. Merchants can log-in to, with their ProPay credentials, begin processing payments, check account balances, or move funds. ProPay Mobile enables merchants to accept credit or debit card payments anywhere their Smartphone's can connect to With ProPay Mobile merchants can:


  •         Process credit or debit cards in real time
  •         Transfer funds from their ProPay accounts to a validated bank account
  •         View account balances, transactions in process, total monthly amount processed

In addition to the ProPay Mobile optimized browser, ProPay offers merchants additional mobile solutions that enable merchants to accept and process credit and debit card payments on the go including:


MicroSecure™ Card Reader - The MicroSecure Card Reader is a small, easy to use swipe device that provides real-time credit and debit card processing and authorization when connected to an internet enabled computer. If internet access is not available, the MicroSecure Card Reader provides store-and-forward capabilities for capturing the payment data and processing those transactions later. The MicroSecure Card Reader encrypts payment card data at swipe to ensure that it is secure through transmission and processing. Merchants also have the option to store the payment data in ProPay's secure data storage service for other transactions such as repeat billing.


ProPay/VeriFone PAYware Mobile™ Bundle - Recently, ProPay partnered with VeriFoneŽ to offer a mobile processing bundle that includes a ProPay Merchant Account and VeriFone's PAYware Mobile device. Merchants receive a robust merchant account and the ability to accept and process credit and debit cards using their iPhone 3 or 3GS.


IVR Phone Processing - ProPay's IVR Phone Processing service provides a simple, secure, and cost-effective credit and debit card processing option which is accessible 24 hours per day, 365 days per year via a toll free number. This solution is ideal for any mobile business that needs a real-time credit or debit card authorization. Transactions are immediately approved or declined.


Create your opportunity to make a sale with ProPay's suite of mobile payment processing options. To learn more click here.

DISCLAIMER:  ProPay, Inc. provides this newsletter only for general information or educational purposes.  Nothing herein should be relied upon without seeking the advice of an attorney or other professional appropriate to the subject matter.  While ProPay, Inc. strives to ensure information in this newsletter is accurate and current, ProPay, Inc. does not guarantee or represent that the information is correct, complete, or up-to-date; nor shall ProPay, Inc. be liable for any indirect, incidental or consequential damages (including lost data, information or profits) sustained or incurred in connection with the use of, operation of, or reliance upon any information contained in this newsletter.