Welcome!

API Journal Authors: Liz McMillan, Rishi Bhargava, Pat Romanski, Elizabeth White, Kevin Benedict

Blog Feed Post

Why eWallets still are bad news

I had a chance conversation with one of my neighbors recently where one of them casually mentioned that they have never bought anything online. Ever. That gave both my wife and I some pause. Not that we are big shoppers, on or offline: but we both think of online shopping as a natural extension of what we do, like breathing. We even know people who buy furniture online, which I think a bit risky.

Against this backdrop, there are yet another round of eWallet innovations that are destined to make the mistakes of the past. There are multiple solutions, usually involving your smartphone and a payment provider, such as the recent announcement from Visa and Samsung. Then there was the deal between Starbucks and Square so you could pay for your lattes by tapping your phone near the register at checkout.

A lot of this activity is motivated by having more near field communications on our phones, meaning we don’t need physical contact to conduct a transaction. While that is very sci-fi, it isn’t going to motivate people like my neighbor to start conducting ecommerce. Let’s go to the video tape of the past botched plays.

I dredged up an op/ed piece that I wrote 14 years ago for Computerworld where I concluded, “If you have a Web storefront, steer clear of e-wallets for now. Let your customers pay you as easily and as quickly as possible.” That advice still holds true today.

To set the context for this piece, you need to know that Microsoft had its eWallet software as part of Windows 98, and during the latter part of the 1990s there were probably a dozen or so vendors who were developing Internet payment schemes of one sort or another. Only Paypal survives from this era, and ironically they had their origins as a piece of software that was used on Palm Pilots to beam payment information using their built-in infrared technology. Many of us consider the contact manager on the Palm still better than anything we have today, but that is a fight that I will leave for another day.

So what happened to all those payment companies? They made several mistakes.

First was the chicken-and-egg of non-universal coverage and too many “standards.” I wrote back then: “Imagine going shopping at a physical mall store and getting ready to pay, only to find out that the store accepts one obscure credit card issued by a single bank in Tuvalu. How long do you think that store would stay in business?” Exactly. All these vendors need to get around one solution, and do it quickly. Imagine how long credit cards would have lasted if you needed separate machines to scan your Visa, Mastercard, and Amex at the checkout line.

Second is that credit/debit cards just work too well. We all have them, we all carry them with us at all times, and we all know how to shop with them. Trying to compete with this universal solution is madness. Indeed, they have largely replaced the need for actual cash. I remember when my dad wouldn’t leave home without several hundred dollars in his wallet. Even when I travel, I rarely have more than $20 or $40 in mine, and usually a lot less. Everyone takes plastic nowadays.

Next, I don’t want to manage yet another cache of cash. It is bad enough that Paypal exists, and that I have to track what is in my account and how quickly I can get any dollars in or out of it when I am buying or selling something. Why do I need yet another account to manage?

The last straw is that I usually need a specific piece of software, browser version, or phone. Check out what you need for the Google Wallet: “an NFC enabled Android device with a Secure Element chip running the most recent Android operating system.” That isn’t a very long list of phones, none of which I currently own. We tried this before and the number of variations means that almost always you don’t have the right mix of things to access your eWallet some of the time. See my remark about Tuvalu above. And note the roll call of failed Internet payments companies of the past too.

So our phones may have gotten smarter with all sorts of new protocols and wireless radios, but ultimately the real gating factor in having the carbon life forms suffer through using them, same today as back in 1999. It is not too late to learn from the past.And maybe sometime soon my neighbor will feel confident enough to buy something online.


Read the original blog entry...

More Stories By David Strom

David Strom is an international authority on network and Internet technologies. He has written extensively on the topic for 20 years for a wide variety of print publications and websites, such as The New York Times, TechTarget.com, PC Week/eWeek, Internet.com, Network World, Infoworld, Computerworld, Small Business Computing, Communications Week, Windows Sources, c|net and news.com, Web Review, Tom's Hardware, EETimes, and many others.

@ThingsExpo Stories
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
In his session at @ThingsExpo, Kausik Sridharabalan, founder and CTO of Pulzze Systems, Inc., will focus on key challenges in building an Internet of Things solution infrastructure. He will shed light on efficient ways of defining interactions within IoT solutions, leading to cost and time reduction. He will also introduce ways to handle data and how one can develop IoT solutions that are lean, flexible and configurable, thus making IoT infrastructure agile and scalable.
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2016 Silicon Valley. The 6thInternet of @ThingsExpo will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, will discuss how VPaaS enables you to move fast, creating scalable video experiences that reach your...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...