New mobile payment technology has recently been introduced by Verifone in the U.S that enables credit card transaction capabilities on tablet devices such as the Apple iPad, Samsung Galaxy and Motorola zoom, deploying a magnetic reader for swiping credit cards.
Verifone’s new technology also utilizes near-field-communication or NFC technology. The device will be rolled out into the marketplace in August 2011.
Square, which was the first company to launch a mobile payment device in U.S., has been called out by Verifone’s CEO because of a potential security flaw on its mobile payment application. The two companies utilize similar technology but have different target markets. While Verifone has focused it’s marketing on “big box” retailers, Square is targeting smaller independent and local retailers.
With the introduction of these innovative new start-up companies, credit card issuers, state banks and cell phone companies are now scrambling to invest in new mobile payment technologies.