A consumer using a PIN-debit card generally can count on a relatively high level of security and low level of technical problems associated with processing the transaction. Those have been the strong links in PIN-debit networks’ chains for years.

The missing link, however, has been the inability to move the PIN-debit process into the mobile-payment environment.

“This is exactly what Shazam needed to do, to allow PIN debit to take place in mobile payments,” industry analyst Todd Ablowitz, president of Centennial, Colo.-based Double Diamond Group, LLC, tells PaymentsSource.

With many different companies supporting mobile payments and card readers that attach to mobile devices, it is important for PIN-debit networks to gain their foothold, Ablowitz contends. This sort of development could move toward a future in which EMV chip-and-PIN could be accepted on cell phones, he adds.

Other companies should not be fooled into thinking Shazam’s network size is not significant, Ablowitz adds. “Shazam has its market share, and this protects that market share and gives it a chance to increase,” he says.

Payments Source, January 27, 2012
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