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Remember that the desired end game is a digital wallet that

is open, accepted everywhere, and that enjoys the confidence
and acceptance of consumers.

the discovery and cure of gaps in security. There also has Secondly, and especially for the merchants, innovators
to be an agreement on who's responsible for administering must keep listening to customers. For instance, it is still
those cures. difficult and inconvenient to make a purchase, from start
to finish, on a mobile device. The process, from registration
The system has to foster trust among consumers. They'll to the final "Buy Now" click and payment, should be as
need to feel that their personal data is safe. Not all quick and convenient as possible.
consumers are enamored of location-based services, and
they are right to be wary. They may opt out of allowing an
application to use their location information, but it's not Accelerated pace
yet clear what happens to all data gathered on people's To recap: a mobile wallet – the one envisioned in the "what's
whereabouts, whether or not it is made public in real time in your wallet" question – would simply store payment
– such as the "Just checked in" feature on Facebook. credentials and a few other features in a smartphone. A
digital wallet would be that and more, with the capability
Collaboration and sharing of relevant data that is fully open, of tapping into cloud computing and wireless networks
interoperable and secure with agreed-upon standards, without the need to embed confidential financials in that
and has full acceptance by merchants and consumers is smartphone. A digital-wallet user can buy something
significant. The digital wallets using that system must be without necessarily having a phone present; the user
accepted everywhere and capable of making payments would enter a phone number and a password or PIN at
and funds transfers for any product or service.
the POS.

None of the current mobile or digital wallets now in action
go all the way to the goal of being open and ubiquitous,
accepted everywhere, and capable of making payments
and funds transfers for any product or service.

I feel that we'll get there soon. The pace of innovation will
accelerate in 2014. Connected devices will get better and
better in making payments through the cloud. Software
providers and platforms will consolidate, triaged by
competition in the marketplace. Plastic cards will still be
around, just as checks are now, but they will continue to
diminish in importance over the next five to seven years.

However, if there's not broad cooperation in addressing
the big issues of security, interoperability and privacy,
then that pace of change will be slower than it could be.
That will make our wait unnecessarily long and needlessly
costly.

Ralph Dangelmaier is Chief Executive Officer of BlueSnap. Ralph
has more than 25 years of experience in the payments industry.
Most recently, he served as the President of Global Markets and
If our 24/7/365 help desk cant resolve your Services for ACI Worldwide, and prior to ACI, he was the CEO of
merchants problems, our replacement deployment P&H Solutions, leading the business from its early stages to more
or repair service will. Call us for details. than $40 million of revenue before its acquisition by ACI in 2006.
Contact him at ralph.dangelmaier@bluesnap.com.

Ext. 220
cardwareinternational.com sales@13-inc.

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