As Techcrunch said this morning, Welcome to the Jungle, mobile payments is huge, and only going to get bigger in the longer run. For those who are unaware of what happened yesterday between Square and VeriFone, you can catch up on it here. The good news is that Square responded and basically like I did yesterday point out that it is super simple without going to a whole lot of trouble to skim credit cards.
I am kind of a Square fan because it is on Android, and it provides a super capability for my company in making money at Conventions. While a number of people have commented on my article, what has been interesting is that other vendors have used this as an opportunity to flog their own wares. Which is good for other vendors when there is a huge spat between the two rapidly growing systems, Square and VeriFone, it distracts people.
One of the best and most interesting abstracts deconstructing the Open Letter is over at Mike Puchol.com, which is well worth checking out.
Of all the folks out there, this one on the surface seemed to back fire on VeriFone, honestly I will not use them for my small company, and in commentary across Mike Puchol, GigaOM, and Techcrunch, it looks like many smaller merchants are thinking the same thing, VeriFone tried to pull a fast one, and from all intents and purposes it back fired badly.
Really we need better ethics in our companies, and it is ok to go after a competitor but it is dangerous to release malware onto the network to kill off a competitor, it is dangerous to not have your hands clean when you are making accusations of what in the longer run could be a criminal matter. Most credit card skimmers do go to jail, and it is stupidly easy to do credit card skimming, that is why there are so many checks and balances on the back end.
Our entire micro-payments, and mobile payment systems are built on trust, we have to trust those we hand our cards to. Even if payments are processing in a restaurant, on a convention floor, or otherwise in a position to take a mobile payment, we must trust the systems that companies are making. In my opinion, it is very difficult for me to do business with a company that I have lost trust in. I simply vote with my wallet and checkbook, if they survive great, if they don’t that is ok too.
I know that if it was not for square, I would have had to make other choices, as servicing credit cards is critical to my business growth, and overall I am very satisfied with Square. But at this time, and like many other consultants in the area are saying, it will be very difficult to recommend VeriFone in the future. They will need to build back up the trust they lost yesterday.
- Square hits back at VeriFone: “not a fair or accurate claim” (slashgear.com)
- Square’s Jack Dorsey calls VeriFone’s vulnerability claims ‘not fair or accurate’ (engadget.com)
- Square’s Dorsey: Verifone Security Claims Not Accurate (nytimes.com)
- VeriFone Takes The Gloves Off, Accuses Square Of Serious Security Hole (techcrunch.com)