Wirecard and the Payment App
The electronic payment provider senses a growth market.
(Foto: obs/Accor Hotellerie Deutschland GmbH)
Even though paying by mobile phone has so far not prevailed in German retail, some providers are changing direction. One provider is the payment service provider Wirecard, who is introducing a new app.
When it comes to paying for groceries around the corner, Germans still swear by cash. While even small amounts are paid by credit card in the USA, electronic payment is slowed down in this country by two obstacles. On the one hand, the connection to the electronic infrastructure costs the retailer money, on the other hand, the Germans do not trust technology.
A study by the management consultancy PWC shows that in 2014 only 176,000 customers across Germany paid for purchases online or offline using their mobile phones. The turnover was just 7.6 million euros. By 2020, however, the analysts see potential for over eleven million end customers and sales of over one billion euros.
No wonder that payment solution providers are working hard to make paying by phone as convenient and secure as possible. So far, the safest way is to transfer payment data stored via the SIM card, so to speak, by direct contact (NFC). However, this has a disadvantage: If something changes, the hardware, usually the cell phone, must be replaced.
The German provider Wirecard is now presenting an app at the Mobile World Congress in Barcelona that uses a variant. The program, called “Boon”, uses software to simulate that the data comes from the hardware. However, the app can be updated at any time. The system behind it is called HCE.