Starbucks Paying The Way For Mobile Payments

No one will ever own a computer in their home.

No one will ever put a phone in their car.

No one will ever need Microsoft Word on their phone.

No one will ever pay for things using their phone.

All of those statements have been proven wrong by technology. The last one–proven wrong both by technology and by America’s favorite coffee shop, Starbucks.

Through their mobile app and their easy to use pay-at-counter system, Starbucks is now reporting that 1 in 10 purchases is paid for by mobile app, the company’s Chief Digital Officer Adam Brotman reported during their earnings call on Friday. In addition to the growth of paying by mobile, loyalty cards were up 30% year over year, which is also tied into their mobile app.

This is great news for startups like Dwolla, Boosterville, Paytango and the countless others that are relying on people moving from physical wallet to digital wallet.

Starbucks is leading the way in terms of mobile payments at huge retail chains, but Paypal is actually breaking into the mainstream as well. Paypal account holders can now integrate their Paypal Mobile app with a phone pin (set up in app) and pay for their purchases at the checkout at places like Home Depot, Champs, Babies R Us, Dollar General and several other retail establishments.

Some entrepreneurs, like Boosterville CEO and co-founder Pam Cooper, are integrating mobile services a la Starbucks. With the Boosterville app, mobile wallet and loyalty & rewards are being integrated for fundraising.

While mobile payments are on the rise, startups like PayTango are taking it to another level with biometric wallets. Services like PayTango, which is currently beta testing in Pittsburgh and California, allow users to pay for things using their finger print. At CES earlier this year we met with a startup that is hoping to use retina scanning technology for payments as well.

Sometimes all it takes is one big name (Starbucks) to adopt a technology. Before too long, even grandma will think it’s normal to pay from her phone.

PulseWallet The Mobile Wallet Startup We Knew Was Coming. Video Interview

With companies like Google, Paypal and now Isis looking to become the mobile wallet company of choice, there are already new technologies popping up that will make those three alternatives look archaic if executed correctly.

New Jersey startup PulseWallet is ready to challenge the big companies that are pouring millions of dollars into their mobile wallet products with the touch of a finger. PulseWallet’s technology will allow users to keep their wallet information protected and then ready to use via their own finger.

In this video interview they tell us that it’s not a finger print technology but rather biometric security. When the user couples their own finger with a four digit pin, it’s an easy, safe and secure way to pay. Forget using your phone as a mobile wallet with NFC or QR codes, PulseWallet tells us that the future of payment technologies is here.

Imagine going to a gas station or a restaurant and just using your finger to pay.

We got to interview PulseWallet founder Matt Saricicek the cofounder of Pulse Wallet in Eureka Park at CES 2013 earlier this month. It seems this team is onto the future of mobile wallet technology, before the big boys even have their systems in full use.

Check out our interview video below and for more visit pulsewallet.co

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Paris Startup AIRTAG Is All About Mobile Shopping INTERVIEW

A startup in Paris called AIRTAG is offering a complete suite of mobile shopping tools for retailers and e-tailers. The startup was founded by Jeremie Leroyer and Cyril Porteret who also cofounded Haiku which was sold in 2004 for $10 million euros.

AIRTAG’s complete suite of products has every facet of mobile shopping covered. AIRSHOP enables shoppers to order and pay in advance for groceries and fast food using their mobile phone. AIRFID is the rewards and loyalty card arm of the company. AIRPASS is a mobile wallet of sorts adding loyalty cards, gym keytags and even transportation passes. AIRTAG kit is the companies development tool kit for developers to interact with their PayPass applications.

The company’s stable of clients already includes McDonald’s, McCafe’, Reebok, Dior and many other globally well known brands. This has prompted AIRTAG to deploy offices throughout the world including a recently opened office in New York. They plan on adding partnerships in both the US and Canada from the New York office.

Mobile shopping and payments have grown into a huge industry and right now it’s still anyone’s game. Google got off to a very rocky start with Google Wallet. Three of the four major US wireless carriers teamed up to help create ISIS an alternative to Google Wallet which was supposed to have seen a larger national footprint heading into this years holiday season.

According to the co-founders of AIRTAG, Japan is light years ahead of the rest of the world when it comes to allowing smartphones to manage people’s lives. Since selling their first startup to Japanese investors both Leroyer and Porteret have spent a lot of time in Japan where they noticed everyone used their phones for everything including bus fare, key locks, and payments. AIRTAG’s hope is to help replicate that system across the world.

We had a chance to interview the AIRTAG team. Check out the interview below.

We Talk Mobile Payments & Brazilian Startup Culture With 500 Startups’ UniPay

We’re continuing our series of interviews with the latest class of Dave McClure’s world famous 500 startups. One of the reasons we love 500 startups is because of McClure’s commitment to startups in and outside of the valley. Sure the top secret lair and command center for 500 startups is based in the valley but McClure targets startups anywhere and everywhere. He’s also known for his geeks on a plane startup events that are literally all over the world.

Fitting right into McClure’s rockstar requirements is a mobile payments startup from Brazil called UniPay. Mobile Payments definitely aren’t new. Brazilian startups aren’t new either, however when you put them both together it does become a new concept. This is partially because credit card payments in Brazil are a beast in themselves. Unipay’s co-founder Tahiana D’Egmont tells us in the interview below that because of bureaucracy, high fees and an ambivalence with trust that runs in the Brazilian culture, electronic payments are a tough nut to crack.

UniPay is addressing the needs of those smaller merchants that don’t have access to credit card processing. If Payfirma is the “Square” for Canada, than UniPay is aiming to become the Square for Brazil.

Check out our interview with D’Egmont below. She tells us all about UniPay but she also tells us about Brazilian startup culture. One of the things we found most interesting is that most Brazilians are deathly scared of their ideas being stolen, and “fail fast” doesn’t work in Brazil, just yet because Brazilians are afraid of failure.

Read the interview below, D’Egmont does remind us that she’s new to the states and he’s still learning English.

Los Angeles Startup PayDragon Launches: Simple, No Frills Order Your Food & Pay App

A new startup has entered the mobile payment arena called PayDragon. PayDragon was founded by Hamilton Chang who also serves as the startups CEO. Chang and his team were also behind the QR code pioneer Paperlinks.

Chang soft launched the PayDragon app in Austin Texas at South By Southwest and decided to do its full launch in LA where the company is based. Chang has eliminated a lot of intense restaurant focused graphics and superfluous extras in the UI to offer an easy order, pay, get receipt transaction system on the mobile phone.

Customers who use PayDragon will order their food from the participating restaurant of their choice, pay for the food, and then get notified by push notification when the food is ready to be picked up. They can also elect to get a receipt sent back to their mobile phone. Chang elected to keep PayDragon as simple as possible and his feedback thus far has proven that point.

More after the break
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Seattle Based Beamit Receives Funding From Schmidt And Bezos

Seattle-based Beamit, specializes in international money transfers for ordinary people. For the most part, when people wanted to send money to relatives in other countries it often meant spending time in long lines at Wal-Mart or other retail establishments, filling out long forms and waiting for Western Union or Moneygram to take in all the information and then finally the recipient would receive the funds. This was of course, after paying outrageous fees to the service provider.

Beamit’s founder Matt Oppenheimer discovered this pain first hand while overseeing mobile and internet banking at Barclays Bank Kenya.

“Many Kenyans received money in an old and antiquated way using a cash-based system on both ends but it was an expensive and a painful customer experience,” Oppenheimer told Seattle based tech site Geekwire. “I knew that there was the opportunity to leverage digital channels, including mobile phones, to improve the lives of our customers.”

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Google Acquires TxVia To Help Bring Google Wallet Into The Prepaid Space.

New York based TxVia has been working in the prepaid space since 2008. They reportedly handle over 100 million accounts and have partnerships with some of the biggest brands in the world.

Google announced on their Google Commerce Blog last week that they’ve acquired TxVia. Google didn’t disclose any of the financials behind the deal.

Google’s VP of Wallet & Payments Osama Bedier said on the Google Commerce Blog:

“They’ve partnered with the industry’s best known brands, and their leadership team has played an instrumental role in defining the fast-growing prepaid card segment of emerging payments.”

Google is working relentlessly as of late, on refining the Google Wallet platform and trying to build scale as quick as they can before ISIS rolls out.

While Google has teamed up with the nation’s third largest carrier, Sprint, to roll out Google Wallet the other three carriers have teamed up to form ISIS another virtual wallet and checkout program. ISIS has been successful in partnering with not only three of the for major carriers but some of the largest payment partners as well. For instance, Google’s current POS partner for Google Wallet transactions is Mastercard’s Pay Pass. ISIS on the other hand, has secured Verifone for their POS transactions.

According to Google TxVia has a payment network that is fast and reliable.

It hasn’t been revealed what role TxVia will play in all of this. Gift cards and prepaid cards have always been in the plans for Google Wallet. It appears, that with this transaction, Google Wallet will be closer to rolling out more “funding” options for Google Wallet customers.

Source: Google Commerce Blog