App Allows iPhone to Read Credit Cards

Last week, we mentioned about Google’s Mobile Payment Platform. This week we found another good news from Google Android Phone’s nearest rival, iPhone.

With just a small device attached to iPhone, users can receive payments from chip-enabled credit or debit cards. The device will be launched next month in Sweden.

Company of this technology, iZettle says that the device will allow anyone with an iPhone to receive payments for small businesses anytime, anywhere.

“If you are a plumber or an electrician, you could take a payment there and then, rather than have to invoice your customer and then wait for days for them to pay you,”says Jacob de Geer, CEO and co-founder of iZettle.

Although the market price of a normal card reader cost from USD 285, iZettle plans to give away its software and reader. They will earn from transaction cut.

You might think that this device is similar to Square. Actually the difference between Square and iZettle is that Square read transaction information from  magnetic strip of  cards whereas iZettle read  from a more secure chip. This device would be more useful at European countries where chips are mostly used for credit or debit card to store information.

Security wise, Mr. de Geer assure that they will not release a new chip card reader without being 100% EMV compliant. He also said that the level of security in iZettle is the same as for any card reader.Besides, no card information will ever be stored on your phone. So payee will not need to worry about their card information being leaked into your phone.

Mr. de Geer do not bother about the threat of emulation of his business plan as he thinks that the barrier of entry to this industry is very high due to complex EMV regulations.

In addition, iZettle plan to extend this technology for the use on Android platform in the future. However, they think one of the hurdles of doing that will be the non-standardization of jacks on Android phone.

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