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With the Starbucks-Target development in mind, Todd Ablowitz, president of Double Diamond Group, a Centennial, Colo.-based payments consultancy, says Cimbal’s application underscores a growing trend toward using 2-D barcodes for mobile payments, and endorses the startup’s take on the method. “It’s better for the consumer to take a picture of the acceptance point than for the acceptance point to read a barcode from the consumer,” he says. “They’re on to something there.” He says barcode scanning by merchants is susceptible to misreads.

But both Ablowitz and Aaron McPherson, practice director for financial services at IDC Financial Insights, Framingham, Mass., have some reservations. Early on, consumer adoption could be problematic, Ablowitz notes. “I don’t know what the compelling consumer value is,” he says.

Digital Transaction News, April 8, 2010