With a new patent filed Amazon found a way for users to exchange less information about each party when they engage in a mobile payment transaction. The patent describes how the information identifying users, such as email and name will be masked under unique identifiers for a seller and a buyer.
Each transaction sellers and buyers will have temporary tokens created to initiate and complete the transaction. Once the transaction is completed, tokens will expire, thus creating anonymity between the parties involved in a transaction. No information will be revealed about each party and Amazon will be the only party involved in the identity of a seller and a buyer.
To initiate a payment, you would have to send a text to Amazon, "pay 20". Amazon would credit your account and send you the code via text, and you could send the code to the seller. The seller would be able then to debit the code onto their account.
Security measures like attaching the code to the payee would decrease the chance of interception of the code by unauthorized parties.
If Amazon were to implement this, it would become the competitor to payment systems like Paypal. Keeping in mind that Amazon is already a competitor to the owner of Paypal - Ebay, this movement would increase Amazon's vertical integration.
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I really like that Amazon is utilizing it's current assets in order to compete with it's major competitor in ways other than it's stronghold. This new system would definitely be a step ahead of paypal and allow for easier transactions through the internet.
ReplyDeleteI like the idea of having more privacy with my purchases. The person who I bought the item from doesn't need to know anything about me, just needs to receive my money. Also, sending a text to make a payment would be so much easier than having to input my information time and time again every time I want to make a purchase online.
ReplyDeleteThis is definitely going to be an important patent, given that one of Amazon's greatest competitive strengths is its competency in shipping and distribution. It looks like Amazon is looking to use technology to bring in a seamless payment process as widespread as PayPal & eBay.
ReplyDeleteAlthough I also really like this idea, I think it will make payments less secure because of the convenience. Texting has never been the most secure route to transfer data.
ReplyDeleteI think that Amazon is really stepping it up when it comes to being the world's marketplace. In the future, I think people will be able to buy anything from Amazon securely and easily.
ReplyDeleteGreat post with great visuals. Payments is an area with very interesting developments. Interesting that Amazon got a patent for this, as I know of many other payment processing companies that are trying to solve this problem.
ReplyDeleteNice article, but I find it hard to believe Amazon will actually be granted the patent on this technology, because this patent seems so obvious, and there are already many technologies that imitate or perform similar privacy functions. I wonder if Ebay would take a stand against Amazon's patent filing as well?
ReplyDeleteThis was an interesting post, I had no idea that Amazon was actually filing IP on anything aside from their readers. This seems to be a huge step towards user privacy and security
ReplyDeleteAmazon should try and get a leg up on new competitors in the industry such as mobile payment processing systems like Square and GoPago. Additionally, this will enhance the experience of mobile purchasing which is a huge problem right now in the mobile industry.
ReplyDeleteI really like the idea; i wonder how much Amazon will skim off of the transactions. It's improbably, but I hope they don't charge anything. An anonymous, frictionless means of transferring money between mobile devices would be pretty epic.
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