Apple Pay and NFC are obsolete: This is how payments could work in the future

Added on by Eduardo Mourao.

After more than ten years testing payment methods in the credit card market I was surprised by the lack of innovation in Apple Pay. Since my company owns the whole stack (terminals, gateway, processing, accounts) I was able to test various methods of payment during those years, including one similar as the one Apple introduced this week. Let me show you how Apple Pay and NFC are obsolete and unnecessary solutions.

Apple Pay is a product of linear thinking and a work of a stable. Their solution is pretty much a standard NFC payment method with a somewhat clunky mechanism involving taking pictures of magnetic cards. The problem is NFC is obsolete, it's been around for almost a decade and it is still struggling to be mainstream. It removes a few steps by adding the cost of new hardware, software and security measures. Which is ok, but it's not really innovative. It's just the same thing as a regular card except you don't touch a reader. But if NFC is obsolete what is a really innovative way to pay? Pretty much like that:

Taking a cab in 2016:

You open Lyft, ask for a driverless cab. Sometime during the ride the car tells you the ride costs $ 15.00 and asks for a payment. As you tap into 'My Wallet', the screen tells you 'You are inside Lyft #412, the ride cost $ 15.00, how do you want to pay?  Lyft accepts credit, checking, e-currency.'  You tap the method you want and the car says 'Thank for you payment, have a nice day'. That's it.

Paying department stores in 2016:

You enter the store, grab your 50th pair of  jeans. You head to a cashier (automated or not), the cashier tells you the purchase would be $100.00. You tap into your wallet and it says 'You are in Forever 33, 88th street' you accept the payment and that's it.

And that's how we will pay for things in the future. Your wallet will not be owned by a single company, you will be able to use e-currency, your checking account or banking credit. Credit cards will not really exist in the form they do today. The implementation of a system like that is simple and the tools are already available. 

Hope you had fun, say hi to me on twitter: @eduardordm

 

 

RubyConf Brasil 2014 - Como montar sua própria empresa de cartões de crédito

Added on by Eduardo Mourao.

World Cup Scare

Added on by Eduardo Mourao.

In my company we didn't think the world cup would affect our business much. We couldn't get any contract related to the world cup, the competition was fierce for what we considered sub par margins. And after all, we are more than one thousand miles away from the nearest hosting city, so we thought nothing would change during the games, maybe just a little drop in sales since people would work less. We were wrong. I will post detailed info after the games, but his is what happened to 1883 small businesses in a non-hosting state capital: at least 39% drop in sales (numbers are salted to preserve strategic information).

From June 12th to 23rd there were 3 full work days in this state due to the world cup and religious holidays, this is absurd. We are very concerned about the medium term impact of this month in local businesses and ceased our pre-payment service to all affected merchants since can't anticipate their sales. 

Hand-to-mouth living from a credit card company perspective

Added on by Eduardo Mourao.

​Days ago Financial Times published a nice article by Gillian Tett about how the hand-to-mouth living is harming the 'recovery' of the US economy. In general, hand-to-mouth living implies that you fully spend your income to keep your current 'status quo'. It also means that the economy would work in cycles that cannot be detected by medium-term censuses.

Read More

How to build aviation software

Added on by Eduardo Mourao.

Not everyone likes to build things, some people prefer to do things. Because I come from a family of aviators and aviation-related workers. I became a pilot soon as I could. I love to fly and I was sure that being an airline pilot was the only career I would ever want. I was wrong. 

Read More

This is why you should never use Oracle DB

Added on by Eduardo Mourao.

I've been using and maintaining large oracle databases for more than 12 years. I'm a  fan of oracle databases. Oracle:

  • Is incredibly fast when dealing with complex queries;
  • It is easier to maintain than competitors when HA is necessary;
  • has a rock solid performance and management makes it almost stupid-programmer proof;
  • It's cool: all software can be freely downloaded from oracle.com;
  • seems to be committed into supporting cloud solutions;
  • is really great in support (at price).

But there is something about oracle you should know before choosing it as your database server...

Read More

How to land an airplane if you are not a pilot

Added on by Eduardo Mourao.

At the flight school people always ask me:

"Can I land a plane? I have X years of flight simulator experience."

Short answer is: history shows you will probably die. Probably not because it is difficult but because you don't know what you don't know. Flight simulators distort important aspects of landing airplanes: your awesome 200 degrees/3D vision, the muscle mechanics of flying and the notion of distance. In fact, flight simulators are harder than the real thing. Yet, many in the flight school I teach landed without the need for intervention in their first flight. I landed an airplane for the first time when I was 11 years old. With a bit of luck you can do this by yourself. So, in case of an emergency, this is what you could do...

Read More