Wallets - Ours OR Google, Apple, ? (VRM)

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Session Topic: Wallets

Thursday 2F

Convener: Doc Searls

Notes-taker(s): Barb Bowen

Sid- Apple is the largest holder of credit card data. Can we make an app to distribute with Apple Passbook as the largest provider to maintain a VRM wallet relationship?

Apple has a method to make you aware of loyalty and incentive cards when you are in the point of purchase locations (Starbucks an example app). Also had experience with Microsoft project that was not released because of typical big company fail.

Square device is a disruption point. The interchange rate is 2.75% Recent invstment at 5Bn valuation. Visa is investor. Physical commerce and ecommerce.

Square focused on their customer, the small merchant. The regulatory contracts and minimums make the experience seamless.

The Square I/O bus implementation was an interesting hardware solution. Powerful from the user point of view.

Doc- sees value in 1 to 1 mapping for sales transactions. Taking a fee for a consultant.

Sam- observes that we carry our phone everywhere. The smartphone as the wallet and loyalty or credit cards are apps. The wallet really is the phone. We will be able to carry many things that would normally not fit in a wallet.


Club cards are easier with an app. An app will scan the physical cards and load them into your phone. Every commercial app is in effect a loyalty card. An ipad can be a complete point of sale system.

Instead of having a bank issue a chip, The cloud could be an id and federated cloud based system. Once you get back to the cloud you could add a great deal of functionality. There is a level of physical security.

Is there a wallet api? There is a disruption point with wallets, Google Wallet and Passbook are not complete. Go directly to commerce?

Regulatory gap analysis is the approach Square took in the market. Branded payments with generalized capability, avoid redundancy. Bar code apps are a universal distribution concept.

A square tag on your own wallet. Square tag = url encoded tag, as identifier. Any machine readable tag


Privacy-Security-Identity-Anonymity are huge market issues.

Two technical issues. Piracy is an issue. Participation in the internet of things with fraud.

Security in money systems is a point of corruption. Micropayment and dividends are a less competitive disruption point. Merchant markets have a huge opportunity to disrupt.

M-peza Kenya (320 million US) G-cash in the Phillipines. Banks are tied to telcos.

40% of the spend is through cards, so these are privatized transactions.


Innovate disruption for the actual value. Light wallet, extend and add functionality.

There should be different payment flows. The key is not mapping all the payment flows. The physical card is a pain point for credit card companies. The chip system is the physical card standard. NFC readable chips.

Bank chip inside phone, Crypto inside the chip. Secrets ISIS secure elements. Multiple tenants. There could be several like Gemalto.

Cash does not leave an audit trail, or cross reference with other identities, or follow through purchase history. (Example DUI arrest tied to patterns in alcohol purchase data)

VPN networks are faster. Deep packet inspect. VPNs are encrypted packets. Capture is possible offline.

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