If you are already hooked up with Paypal mobile payments on your Android smartphone, you recently got a new feature. Other mobile smartphone users who have an Android device can touch ( bump ) theirs to yours and a transaction can take place. This is not science fiction, it has been reality for a couple of months now. Read more on how sending and receiving money using Android works.
Mobile payments are a trending topic these days and Paypal is jumping on the bandwagon. If you have an Android powered smartphone “Bump” Technologies has created an app for sending payments between smartphones. It works by simply bumping the two phones together. If you thought it would be complicated, well, its not. Thanks to quantum mechanics, this idea works well enough to be secured and used by Paypal, the world´s largest payment processor. As a sidenote, Paypa is adding a million new accounts per month. Android is on 200,000 new devices per day. This means the “customer base” is growing by leaps and bounds.
The programmers at “Bump Technologies”, the group who created this application, are somewhat new at mobile payments. They were founded just two years ago. They happen to be based in the same neighborhood as Google; Mountain View. About a year ago they received three million dollars in Series A funding. They want to “fix” what they say is a problem of cell phones. Bump claims they are not able to complete a connection with each other when they are sitting right next to each other. Of course, many would disagree, but this idea is new. Two cell phones, can be tracked and known if they touch each other. Software is used to do it. Bump Technologies is making this software and applying it to mobile payments with the help of Paypal.
Examples of screenshots showing the inner workings of Android, Bump and Paypal are shown online. They have positive results so far. The advantage here is that the interface is the familiar Paypal look. There is no need for typing in the personal details of the person sending or receiving the money. Software takes care of everything after the “bump” happens. Splitting checks for a meal at a restaurant, even between more than two, is easy just by “bumping” their cell phone with yours.
This bump technology is similar to “Near Field Communication” ( NFC ) that has been used in Japan. The Japanese use this technology to pay for train and bus fare and other repetitive payments. There is also the “Square” payment solution that can be used for iPhones. Square uses a regular credit card and separate piece of hardware to send mobile payments. Square requires a signature, since credit card payments use this step to finalize the transaction.
You can view “Bump” as a type of battle between credit card companies and the makers of software solutions. If people no longer need a credit or debit card to pay while they are on the move, the credit card companies will begin to lose money. They have traditionally been the way to make payments without paper money. You can bet “Bump” has their attention.
Mobile payment solutions like the one between Paypal and Bump Technologies are brand new and yet claim to be secure. History tells a different story. Nevertheless, if this technology is more secure than credit cards, there is a chance of a mass exodus away from them.