Here is a link to an excerpt on the politics of credit card systems. It illuminates how startups companies wanting to provide services face difficulties, including this:
Two pieces in the chain are particularly vulnerable to disruption: the makers of the actual hardware — basically card readers and registers — that are used to physically accept card payments at stores, and the hundreds of vendors known as merchant service providers, or MSPs, which set businesses up to accept credit cards.
The entire article (unfortunately you must pay to get it) speaks to some of the issues we are facing with MobileMarket et al in expanding technology to lower capacity markets and farmers. It also shows the need for the food movement to embed knowledge on card and currency issues so that we stay ahead or at least on the curve of changes, rather than being pawns of the very small set of multi-national players in technology and card processing. If, like me, you accessed the entire article (or others like it) and want to have a conversation, I’m interested in talking about these issues in more depth. Feel free to contact me…
an excerpt from another article on the subject raises many of the same questions:
“…with the global roll-out of mobile payment services comes uncertainty for both banks and consumers, and this is evident in the lack of standardization in mobile payments technology. Financial institutions are facing a major dilemma. When planning mobile payment services, they need to select one of the available technologies in the hope that it will become the dominant standard, or they risk being left behind.”