Here's my two cents. I do not believe in the hardware at home solution very much either. You might not believe this, but Belgium (where I live) is has always been a forerunner in electronic payments. One of the first countries in the world to have an extensive ATM network (more than 15 years ago!) and also one of the first two start with electronic purses.
The company responsible for the TRANSACTIONS via ATM cards (the different banks are the issuers of course) and e-purse (actually typically on the same card), Banksys (e-purse is their spin-off company Proton World, also partly owned by VISA and another if I'm not mistaken) also have hardware to be able to use at home. So far, the success is rather limited. They are dead cheap (I recall about 30$). The alternative, for people who do not have internet connections, is also available. Belgacom, the national telephone company, has a telephone available which also has a card reader. Also not very succesful.
Issue is two fold (I believe), people tend to have enough ways to buy things. People just go buy in the shop. For those who buy from remote, they use their credit card either over the phone or over the internet.
I know there's a lot of people worried about sending credit card info over the internet. But first of all, this worry is unfounded as credit companies take responsibility anyway. Secondly, offering them an secure alternative will not help as they have no reason to trust that either.
Anyway, saying all that negative stuff, I do believe there is a market (therefore I own ECNC stock), but I also think it is a very tough one with tons of competition. Product positioning and getting the right partners is key.
As I said just my two cents.
Mario. |
