From The Huffington Post by Bill Robinson: 'There's a brutal, bloodbath-type clash looming. And it's going to be held in a very big market: how people pay for things and how small business and individuals might accept charge cards on their phones.
While PayPal was the progenitor for Internet-based payment processing, a new breed of high-tech startup is emerging which will likely disintermediate PayPal out of business.' Continued.
Trish's Comment: Because it is indeed a numbers game, and fraud prevention opportunities versus necessary infrastructure investment does not seem to warrant such a change in the US, I do not think that EMV will be coming to America in the short-, medium- or even long-term: This technology will probably be leaped-frogged in the US while looking for better solutions to avoid fraud in 'card-not-present' situations (for example, the 2009 British Crime Survey reports that, in the UK, 3/4 of fraud occurs during Internet/telephone/mail order transactions where EMV does not provide any benefit). For this reason, I agree with de Geer, iZettle can and will co-exist with Square and just grow in parallel, focusing on different markets, unless one - or both - of them decides to expand their target market...
In any case, I am really glad to see a new company come to life to cover the extensive market that was not addressed by Square although, why did Square decide not to target EMV users? The US is a very large market and represents a very large opportunity but why not go after the global opportunity? Is EMV such a complex technology? With all his experience, including the world-wide phenomenon that Twitter has become, you cannot label Dorsey as being too US-centric. Or can you?
While PayPal was the progenitor for Internet-based payment processing, a new breed of high-tech startup is emerging which will likely disintermediate PayPal out of business.' Continued.
Trish's Comment: Because it is indeed a numbers game, and fraud prevention opportunities versus necessary infrastructure investment does not seem to warrant such a change in the US, I do not think that EMV will be coming to America in the short-, medium- or even long-term: This technology will probably be leaped-frogged in the US while looking for better solutions to avoid fraud in 'card-not-present' situations (for example, the 2009 British Crime Survey reports that, in the UK, 3/4 of fraud occurs during Internet/telephone/mail order transactions where EMV does not provide any benefit). For this reason, I agree with de Geer, iZettle can and will co-exist with Square and just grow in parallel, focusing on different markets, unless one - or both - of them decides to expand their target market...
In any case, I am really glad to see a new company come to life to cover the extensive market that was not addressed by Square although, why did Square decide not to target EMV users? The US is a very large market and represents a very large opportunity but why not go after the global opportunity? Is EMV such a complex technology? With all his experience, including the world-wide phenomenon that Twitter has become, you cannot label Dorsey as being too US-centric. Or can you?
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