A Real Mobile Wallet (Finally!)

I heard about an interesting mobile payment technology yesterday from MobilePayUSA. The press release I saw detailed how MobilePayUSA, a mobile payment solutions provider, launched a private beta test of its solution with Tutti Frutti Frozen Yogurt in Balboa Island, Calif.

I heard about an interesting mobile payment technology yesterday from MobilePayUSA. The press release I saw detailed how MobilePayUSA, a mobile payment solutions provider, launched a private beta test of its solution with Tutti Frutti Frozen Yogurt in Balboa Island, Calif.

Big deal, right? Well, the release noted that MobilePayUSA launched its test without near-field communication (NFC) technology.

What does this mean? Basically, it means that unlike most other players in the mobile payment space, MobilePayUSA doesn’t require vendors or customers to buy new NFC technology-based hardware to use it. (NFC is next generation short-range, high-frequency wireless communication technology that enables the exchange of data between devices built with this technology. Many devices aren’t yet built with this technology, however, nor have any standards been created around it.)

Here’s how it works: MobilePayUSA’s mobile payment app connects to its cloud service, which gives users access to multiple payment options as well as discount and group cards. Users that sign up for the service enter their credit card information on MobilePayUSA’s website and download the app. Then, when they’re in a store that accepts the service, they simply open the mobile payment app and show the cashier. The cashier hits a few buttons, the transaction is processed and a receipt is emailed to the customer.

Here’s a promotional video showing an actual mobile payment transaction taking place at the Tutti Frutti Frozen Yogurt store using MobilePayUSA’s app. Pretty neat, huh?

Also unlike other e-wallets, MobilePayUSA doesn’t use RFID chips embedded in smartphones, so credit information is never stored on a phone or shared with the merchant. The company declares this difference will prove to make its solution more secure from the real threat of illegal skimmers and hackers.

I have to admit, I think this is a really great use of mobile commerce technology. It seems to make it very easy for consumers (and retailers) to finally take the mobile commerce plunge. What do you think? Please leave a comment below.