5G Technology World

  • 5G Technology and Engineering
  • FAQs
  • Apps
  • Devices
  • IoT
  • RF
  • Radar
  • Wireless Design
  • Learn
    • 5G Videos
    • Ebooks
    • EE Training Days
    • FAQs
    • Learning Center
    • Tech Toolboxes
    • Webinars/Digital Events
  • Handbooks
    • 2024
    • 2023
    • 2022
    • 2021
  • Resources
    • Design Guide Library
    • EE World Digital Issues
    • Engineering Diversity & Inclusion
    • Engineering Training Days
    • LEAP Awards
  • Advertise
  • Subscribe

Experts: Real-Time P2P Options Key to Future of Mobile Payments

By Diana Goovaerts | November 26, 2015

As mobile payment systems like Samsung Pay, Apple Pay and Android Pay continue fighting for a foothold in the everyday lives of consumers, it seems the key to their success lies in their utility to consumers. But according to industry experts, one key component that can turn mobile payment systems into a true digital wallet is missing: real-time person-to-person (P2P) payment capabilities.

While it’s true that P2P payment systems exist in the form of Venmo and Paypal, the problem is lag.

“There are some great P2P mobile offerings in the market today from PayPal to Venmo, they are great but all of them suffer from the same issue: they are closed loop systems that require a settlement out to ACH if you want to get the actual cash,” said ACI Worldwide’s head of Digital Banking Channels Mark Ranta. “So while the shifting of money is in ‘real time’ as soon as it has to leave the ecosystem, it isn’t. The best example of where this value proposition would fall apart is if a roommate (uses) Venmo (to send) the head of the apartment rent on the day it is due to the landlord, the Venmo transfer would happen real time but the actual clearance into the head of the apartments checking account may miss the clearance of the check to the landlord.”

According to Ranta, the move toward same day or even instantaneous clearance for transactions within the next year will be crucial to strengthening both mobile payment systems and banking apps.

One company that already holds a patent for this type of technology is Mobeewave, which is currently piloting its real-time P2P system through Visa in Canada.

Mobeewave founder Maxime de Nanclas said the company’s near real-time cash-in, cash-out technology represents a huge shift in thinking from the cash-out-only approach of many other mobile payment systems. The difference, he said, is a focus on the consumer rather than the merchant that allows Mobeewave’s payment system to act as a true digital wallet.

“Vemo takes up to two to three days to process and it’s not as instant as cash,” Nanclas said. “What Mobeewave is about is giving (consumers) this experience of instant cash in your wallet, only it’s digital, and it’s available in 30 minutes or so.”

According to Nanclas, Mobeewave is a proximity-based system, using NFC technology that allows consumers to “tap” their smartphone or credit card to send money via an encrypted exchange to anyone with a banking or mobile wallet app equipped with Mobeewave payment-acceptance. The system is compatible with both contactless credit cards like Visa’s PayWave and MasterCard’s PayPass and contactless mobile payment systems like Android Pay, Apple Pay and Samsung Pay. The goal of the system, Nanclas said, is to recreate the simplicity and immediacy of cash transactions in digital form.

Nanclas said Mobeewave is aiming for a full launch in 2016.

Though companies like Mobeewave will likely heat up the competition, Ranta said he expects the main players in the mobile payment space will boil down to big companies like Apple and Samsung as well as financial institutions like Chase.

“While I think Venmo and PayPal have served a need to date, their differentiated state from the others will diminish with the coming market changes,” Ranta said. “As the tide shifts it will come down to the largest players, as they will have the ability to alter the value proposition and bring in merchants to enhance the value proposition to the end users, and drive adoption.”

“I also think more and more banks will roll out stronger P2P functionality within their own banking apps,” Ranta continued. “So I think a lot is coming next year in this space and (it is) one to keep a close eye on.”


Filed Under: Apps

 

Next Article

← Previous Article
Next Article →

Related Articles Read More >

12 nm silicon IP integrates multi-standard connectivity
series-parallel RC RL calculator
Online RF calculators help engineers
Ethernet analyzer decodes wireless protocols in wireline networks
EDA software adds support for tower semiconductor SiGe

Featured Contributions

  • Overcome Open RAN test and certification challenges
  • Wireless engineers need AI to build networks
  • Why AI chips need PCIe 7.0 IP interconnects
  • circuit board timing How timing and synchronization improve 5G spectrum efficiency
  • Wi-Fi 7 and 5G for FWA need testing
More Featured Contributions

EE TECH TOOLBOX

“ee
Tech Toolbox: 5G Technology
This Tech Toolbox covers the basics of 5G technology plus a story about how engineers designed and built a prototype DSL router mostly from old cellphone parts. Download this first 5G/wired/wireless communications Tech Toolbox to learn more!

EE LEARNING CENTER

EE Learning Center
“5g
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest info on technologies, tools and strategies for EE professionals.

Engineering Training Days

engineering
“bills
5G Technology World
  • Enews Signup
  • EE World Online
  • DesignFast
  • EDABoard Forums
  • Electro-Tech-Online Forums
  • Microcontroller Tips
  • Analogic Tips
  • Connector Tips
  • Engineer’s Garage
  • EV Engineering
  • Power Electronic Tips
  • Sensor Tips
  • Test and Measurement Tips
  • About Us
  • Contact Us
  • Advertise

Copyright © 2025 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy

Search 5G Technology World