PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

The Risks of Mobile Deposit

Edward O'Brien by Edward O'Brien
May 9, 2014
in Analysts Coverage
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Virtual currencies are gaining momentum in the market, but the largely unregulated use of schemes such Bitcoin are a drag on mainstream adoption.

Bitcoin users have blamed recent FINCEN rules for causing some bitcoin exchanges to shut down this year due to licensing requirements, but safety and security are table stakes for any payment form no matter how innovative. The National Treasury in Canada is taking a different approach to digital currencies and is issuing electronic money in place of physical tender. The idea is called MintChip.

From the Toronto Star:

Since 2009, funds have been put toward “improving the efficiency of Canada’s currency” and international expertise has been enlisted to develop an “eCoin” for Canada, according to internal documents, interviews and international patents. MintChip, as envisioned, could enable paying someone back by tapping phones together, scanning a QR code to donate to charity, or clicking to spend cents on an online article.

Unlike bitcoin, the government would issue MintChip as legal tender. The government’s goal would be to migrate transactions under $10 to MintChip, and user would load funds onto USB sticks or MicroSD cards. Transactions fees would be ultra low, if any at all. Details are still being worked out, but the concept is being piloted. Last year, a contest was held to find applications for MintChip and the winner was a product called MintWallet. The Treasury is consulting with stakeholders, which include financial institutions.

At some point, cash will become enough of a nuisance that financial institutions and governments will take these schemes more seriously. The competitive market, however, is just now heating up, so the question becomes if any form of cash will survive the onslaught of digital payment forms? MintChip is interesting because it specifically targets low-value physical transactions while bitCoin is used for online payments putting on a competitive basis. Other attributes are the same, however: very low cost acceptance, real-time value transfer, and no recourse. It’s highly unlikely that a majority of consumers will select one and only one digital payment type, just as they use multiple physical forms of payment today. Once digital wallets become pervasive, being able to put digital cash in them will make just as sense as any other payment type.

Click here to read more from the Toronto Star.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    On-Demand Webinar: Solving the Digital Onboarding Challenge​ – Increasing Conversions without Increasing Risk

    On-Demand Webinar: Solving the Digital Onboarding Challenge​ – Increasing Conversions without Increasing Risk

    February 8, 2023
    legacy infrastructure

    How Modernizing IT Can Help Banks Compete With Fintechs

    February 7, 2023
    Buy Now Pay Later BNPL, B2B BNPL

    B2B BNPL Offers a High-Potential New Chapter in Payments

    February 6, 2023
    eCommerce On Social Media, social commerce

    The Rise of Social Commerce and Social Payments

    February 3, 2023
    Electroneum AnyTask; ETN Crypto, sales enablement

    Ethical Financial Selling: The Role of Compliance Technology and Sales Enablement

    February 2, 2023
    direct deposit

    Nacha Launches Campaign to Reach Millennials on the Benefits of Direct Deposit

    February 1, 2023
    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    January 31, 2023
    credit card tumbling

    How to Detect, and Prevent, Credit Card Tumbling

    January 30, 2023

    • Advertise With Us
    • About Us
    • Terms of Use
    • Privacy Policy
    • Subscribe
    ADVERTISEMENT
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • News
    • Resources

    © 2022 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the Equinix report - Dojo Delivers Fast, Reliable and Secure Card Payments to Businesses on Platform Equinix