The Problem:
As we try to move from physical to digital payments, we’re experiencing all sorts of snags and slow progress. The problem is a fundamental flaw.
The Business
Payments where anyone can charge you for anything at any time. But they must get your approval for that transaction.
Right now, if you want to buy something, you must initiate. You hand over cash. You swipe a credit card. You wave a phone in front of a reader. You send an email.
I’m talking about your payment information being widely known. That’s right – no privacy in your info.
The verification is in the approval you give for each transaction.
Doableness
This is a hundreds of billions of dollars business that is essentially undoable at this point. But before you think I’m crazy or dismiss this out of hand, think about what paypal actually is. It’s not so dissimilar to this. If I know an email, I know how to give someone money and I also know how to request someone give me money. In essence, if I send a money request and it gets approved/acted on, that’s hardly different.
My Thoughts
There are numerous advantages to this. First, it’s winner take all. Banks have always had to use systems to shovel money in and out of their possession. In this circumstance, the systems are money – or they are at least more directly tied. Trust me, paypal knows this.
Second, if done right, security becomes better. As long as there is a way to be certain the right person is being asked, and, once asked, the real person is responding, “Approval Payments” will be more secure.
Third, speed. Without a doubt, speed.
Smart Phones and Fingerprints are coming to mind. Who is putting them together? http://www.bbc.co.uk/news/technology-17490629 Stay on the lookout for the answer to this question.