Apple have filed a patent looking at NFC but hinting at iBeacon (a variant of bluetooth) to complete the action.  The secure element in the pic below could be the digital wallet. Apple Investigating iBeacon-Assisted Mobile Payment Methods Patent application number 20140019367, filed in September 2012 and published today, describes a method that would send payment data through various wireless interfaces without compromising the user’s data. The method uses two links — one connection to a point-of-sale device to establish the initial connection and a second, secure connection that sends the payment information. This payment information is then processed by … Continue reading New Apple patent looking at iBeacon for payment transactions

We now have a brilliant comparison in front of us between a government backed electronic currency and an internet peer to peer based one.  May the best man win. Royal Canadian Mint demos digital currency – Mintchip The Mint hopes that eventually Canadians will use a ‘chip’ to load value onto a device such as a smartphone, PC, tablet, or store it in the cloud, and then buy physical goods in the real world or digital content online. Bitcoin is an innovative payment network and a new kind of money Bitcoin uses peer-to-peer technology to operate with no central authority … Continue reading Mintchip vs Bitcoin – the perfect test of Central Bank vs P2P money

I have been thinking about 2014 and the obligatory new year post.  I long ago stopped the prediction list business and am more interested in directions and trends that will bring shifts in financial services applications. Software is smart isn’t it so what does the title imply you might ask.  My general experience in watching software development in financial services has been that it automates things that we used to do manually.  Automation by definition is just that.  This is not a surprise and reflects natural limits created by limitations of three business drivers: Business executive impatience seeking that improvement … Continue reading 2014 and the Rise of Smart Software

The always thoughtful and complete World Economic Forum (WEF) in Geneva have produced their annual Global Agenda Outlook Report for 2014.  Local copy here. (37mb pdf) First the top 10 trends: Next the report frames the trends by region: and by significance: Then the interesting section on ‘The Big Questions’: The Future of Biotechnology The future of shale gas The future of democracy The future of surveillance The future of the Arctic The future of multinationals The new space race Mapping the future Data immune system Collective Awareness Innovation at the edge Preparing the digital natives This is the briefest … Continue reading WEF Global Agenda Outlook 2014 – overview

Finally Target confirm the obvious, that the recent hack of 40 million debit and credit cards also obtained the PIN numbers.  Target have also told CNN that they do not store the encryption key.  This is suspect at best.  It may not be stored but it exists somewhere otherwise they could not have encrypted the PIN’s.  I would go further and question why Target store the PIN at all.  The EMV protocols require the PIN for interaction between the Card, POS and the Bank.  The PIN is of no value to Target. Target confirms encrypted PINs were stolen in recent … Continue reading EMV decisions on mag stripe in Canada in 2005 come back to haunt customers