ThePaypers: Exclusive interview with COO/CIO Christian Bamberger about new mPOS service

By Christian Bamberger on 28. March 2013 in Market Insights, Open Payment Technology

Today in the ThePaypers newsletter I talked about our mPOS solution. The heart of our new service is our offer to payment service providers/independent sales organizations, to step into the mobile payment market immediately with a ready-to-use, full payment network supporting, PCI certified and already market-tested solution for their merchants. As we have heard in Markus’ recent blog, more than 10.000 merchants are connected to our mPOS solution already, using their smartphones and tablets instead of traditional POS terminals. In Germany four out of six German projects are using the white-label PAY.ON/payworks mPOS technology, in other countries PAY.ON is also building up remarkable market shares over its mPOS PSP/ISO clients. Core benefits are significant cost savings, a fast and flexible deployment at all needed locations, new payment options for location independent businesses as taxi, a seamlessly processing from the applications over powerful processing platform-as-a-service to all needed payment partners and of course the extremely low fraud risk.

One of the greatest advantages of our solution is still the fact, that we have our own HSM systems. This makes us and our clients, in comparison to the other market players, completely independent in choosing connections and acquirers.

Following the summary of my statements on our new mPOS solution:

ThePaypers:  Until recently, PAY.ON was known as a global processor for payment providers and was involved mainly in the online space. Why have you decided to enter the mobile payments market with a mPOS solution?

Christian Bamberger: PAY.ON offers all facets in global processing of online payments, including MOTO and mCommerce solutions, among other things. It is therefore a logical step to further develop our Platform as a Service PaySourcing into mobile payment. The result is payment coverage for any field of application, including multichannel processing, the associated comprehensive reporting, sophisticated risk management and profound business intelligence. With PAY.ON, customers have access to all the professional instruments they need to be successful in their own market, as well as to expand their business into other segments – seamlessly and from a single source.


ThePaypers:  In your opinion, what are the advantages of a mobile POS solution compared to a traditional POS terminal?

Christian Bamberger: mPOS offers retailers complete flexibility for their payments – it is operational regardless of time and place and available as quickly as a mobile contract. The solution can be deployed on existing hardware – smartphones and tablets – and is compatible with existing systems such as restaurant software and booking systems. Mobile deployment is also possible at trade fairs and in taxis. In the process, PCI fulfilment via a certified, self-contained workflow is guaranteed. The risk of fraud is therefore reduced to virtually zero. As bills are sent directly via email, the customer email addresses gathered can also be used for marketing campaigns.


ThePaypers:  Security has always been a top concern for consumers. How do they authenticate themselves during the payment process? Where is the data stored and how is it protected?

Christian Bamberger: mPOS uses end-to-end certification. The card data, all sensitive data in fact, are encrypted by the application in the end device, which then transports them via a secure connection to PAY.ON, where they are decrypted in a secure environment for further processing. As such, no data are saved on the mobile end device. Even concerns about losing customer trust through mobile payments are unfounded, because the payment process takes place before the customer’s eyes, something that actually strengthens customer trust.


ThePaypers:  You have got quite some competition in the mobile payments market. Could you please specify some features that set your mPOS solution apart from other similar mobile POS services providers?

Christian Bamberger: Competition is necessary for progress, increasing quality and reducing prices, something that can only be a benefit for retailers. In contrast to new developments from other companies, PAY.ON services are always based on an existing, fully developed platform and are therefore fully equipped with global connections to over 250 payment providers from the word go. The only thing our customers have to worry about, therefore, is running their business.

Furthermore: due to the white-label nature of the PAY.ON service, it is not possible to provide outsiders with a categorisation of which provider offers are original and which are based on PAY.ON technology. It should be stressed that PAY.ON is significantly involved, both nationally and internationally, in the development of the mobile payment market via its mPOS customers.


ThePaypers:  In your opinion, will mobile POS replace traditional POS terminals in the future or will we see an online-offline convergence in the retail ecosystem?

Christian Bamberger: There are parallels that can be drawn, such as smartphones and cameras. Despite substitution, the smartphone will not force the camera in itself out of the market. This situation is also conceivable for mobile payment. New technology ensures increased competition and will therefore also lead to a redistribution of the market share between the new mobile payment providers and traditional POS terminal providers.


Christian Bamberger

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