Topic: Competitive analysis of Bitcoin vs Square, SumUp, iZettle, Payleven (Read 12417 times)

Huh, does anyone know why Barclays processes payments for this service only during Kenyan working hours? That seems bizarre even by the low standards of the banking industry. Why Kenya, of all places?

It may be true but those smart cards were already licensed around the world, and the US also uses smartcards in many places (GSM network SIM cards, DirecTV cards, etc). I don't think smart card patents explains it.

There is a notion that Bitcoin is good proxy currency because of it's openness it can connect to any other payment system. I think the only other universal way to go between two networks is by using banking system e.g. wire transfer, which is painful.

Huh, does anyone know why Barclays processes payments for this service only during Kenyan working hours? That seems bizarre even by the low standards of the banking industry. Why Kenya, of all places?

I don't disagree but note that Bitcoin, being just "one more system" from the perspective of the user, doesn't solve that.

It might solve it one day if the "one more system" takes over, as the internet took over from AOL and CompuServe, and that's an analogy I have used in the past to talk about Bitcoin (open systems beating closed, etc). I think it's very apt.

It works fine, it is all based on Bitcoin.

Here is my question: Suppose I am using a WalletBit wallet and the merchant is using one of your competitors let say BitPay, How does it work? 

Nice post indeed. But yes, this is the area we as a bitcoin payment processor want in on "Cleaning up the mess?".

         Paying for stuff                Receiving Payment

How would that work?

I may be wrong but I was under the impression that the reason was because most of the patents for the chip are owned by european companies (Gemalto aka Gemplus). For example, smartcards with chips in them were being used for phone booths when I visited France in the 1989.

3. Payments must be made in sterling, and an exchange rate (Link opens in a new window) will be applied when funds are converted to the local currency. Payments made on a working day will be processed immediately, if made between 8am and 5pm Kenyan time (excluding weekends and Kenyan public holidays), and the funds will be received the same day if the transfer is made before 5pm Kenyan time. Payments made after 5pm Kenyan time, or on a non-working day, will arrive the next working day.

What we have is a growing multitude of incompatible propriety systems that don't and never will talk to each other. It is like an AOL user trying to communicate with a Compuserve user in 1989.

The solutions the OP describes are just connecting phones to the existing payment card infrastructure. I believe that model will be superceded by  banks developing their own smartphone payment apps and services. Visa and Mastercard may lose marketshare as a result.

Barclays Pingit in the UK, is one example. Neither the purchaser nor the merchant need a credit card account. You run an app on your smartphone that is linked to your bank account. You open the app, type the recipients phone number and click send. Quick and easy.

These payment apps will be heavily restricted to what they can do. Pingit has limits on amounts you can send. Banks and governments dont want people moving millions of dollars around by phone. So bitcoin will always have an advantage in that regard.

Important information
1. Terms and conditions apply. You must have a UK current account and be aged 16 or over to use Barclays Pingit. You can download the app and register to send and receive payments but if you bank elsewhere, we can set up a Barclays Pingit Wallet account for you to use. You can also register online (Link opens in a new window) to only receive payments.
 
Payments in sterling. Minimum payment of £1, the daily payment limit is £750 and the daily receiving limit is £5000. If you have received any payments, you must register within 24 hours or these will be cancelled.
 
The Barclays Pingit app only works with Android 2.2 and above, iOS 4.2 and above and BlackBerry OS 5.0 and above. You may be charged by your service provider for mobile or internet use. Business customers on certain tariffs will be charged for transactions. We can refuse to register you for Barclays Pingit or place limits on how you use it. Visit Barclays Pingit for Business customers for more information.
 
2. Subject to available funds. When sending money, you must ensure the recipients mobile number is current and correct otherwise the payment may be returned or made to the wrong person.  We won’t be liable to you if the money is sent to the wrong person as a result but we will try to recover the money which is our standard practice.
 
Barclays Features Store – terms and conditions apply. You can use the Barclays Features Store online, in branch or by calling us, to add a Feature or Pack to a Barclays Bank Account or Premier Current Account. Packs are available for a monthly fee. You may need to register or apply for certain Features. These may also incur separate fees or charges. The Barclays Features Store cannot be used for certain accounts. For more information and to read the terms and conditions visit featuresstore.barclays.co.uk
 
3. Payments must be made in sterling, and an exchange rate (Link opens in a new window) will be applied when funds are converted to the local currency. Payments made on a working day will be processed immediately, if made between 8am and 5pm Kenyan time (excluding weekends and Kenyan public holidays), and the funds will be received the same day if the transfer is made before 5pm Kenyan time. Payments made after 5pm Kenyan time, or on a non-working day, will arrive the next working day.
 
4. Barclays does not charge you for this Service. An exchange rate will be applied when funds are converted from sterling to the local currency. You may incur charges by your service provider for internet usage.

This leads to the question of why the USA is so far behind Europe in payment card security. Though EMV has been deployed for years across many different countries, deployment in the US has barely begun. The answer may lie in the structure of the card industry.