In 2010, Your iPhone Could Be a Credit Card Reader

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In 2010, Your iPhone Could Be a Credit Card Reader

vía Mashable! de Jennifer Van Grove el 1/01/10

We're just a week away from the annual gadget-lover's dream event, otherwise known as CES. One company that everyone will have their eyes on this year is Mophie.

Mophie, a popular retailer of Apple iPhone and iPod accessories, is set to debut their iPhone credit card reader — said to be named "Credit Card reader" — and complimentary processing application. This will allow merchants to accept credit card payments by swiping the card through a special iPhone case. While details around the device add-on are slim, interest is already high.

The buzz building around Mophie, the palpable excitement and interest stimulated by Square, and an increasingly competitive mobile payment system market means that 2010 will be the year that consumers will buy and sell from their mobile phones.

Proof of Concept

If you purchased anything at Apple retail stores this holiday season, then you were probably rung up by an employee using Apple's new custom-designed iPod Touch with a black shell serving as a credit card reader.

The combo software hardware solution, which replaced the hand-held Windows CE devices they were previously using, serves as a testament to both the practicality and feasibility of processing payments en masse.

We got our first detailed look at the Apple's new system via AppleInsider, who shared detailed descriptions and images of both the software and hardware components comprising Apple's credit card reader.

The Contenders

Square

Square, from Twitter co-creator Jack Dorsey, was first to make a big media splash in the mobile credit card reader sector. Square's answer to mobile credit card payments is a platform agnostic hardware device that plugs-in to phones via audio jacks.

The company has currently only developed software for the iPhone, but that's expected to change in the coming months. Square also plans to give their square-shapped reader away for free, charge a minimal fee for the app, and support customer loyalty programs.

Mophie

The details around Mophie's Credit Card Reader are minimal at the moment, but their hardware appears to be an iPhone-only shell similar in style to the Juice Pack Air (which retails for $79.95). We can safely assume then that Mophie's hardware solution will be a much pricier alternative to Square. As for what the software component will look like or cost, we can only speculate at this point.

VeriFone / PAYware

Another big player in the space this year will be VeriFone. The company has their only mobile credit card processing system called PAYware Mobile and it's also one part hardware, one part software application.

The first iteration of PAYware Mobile is for iPhone and iPod Touch (with versions being developed for Windows Mobile, BlackBerry and Android). The iPhone hardware device plugs into the dock connector and hugs the bottom half of the phone, with the credit card swipe on the side.

The Verifone solution isn't exactly priced for Square's everyman casual seller. The all-in-one package deal includes a stylus for signatures and will cost $49 to activate, $15 p/mo, and 17 cents p/transcation (according to the Los Angeles Times) with a 2 year contract. Of course, you're also paying for the Verifone name and the supposed extra security that goes along with the it. You can pre-order PAYware Mobile now, but its expected release is slated for January 15, 2010.

As more companies enter the space you can expect security and pricing to be the two primary factors that influence consumer and small business decisions around the solution they choose.

Reviews: Android, Twitter

Tags: Mobile 2.0, mophie, PAYware Mobile, Square, trending, VeriFone