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Square and Security: MagTek CEO Mimi Hart Offers Executive Insight
There's a new disruptive technology in town — "Square" is Twitter co-founder Jack Dorsey's new project that aims to revolutionize mobile payments. While the tech world is abuzz, there are many in the payments industry who have voiced concern over security.
MagTek has been in the payment space for over 38 years and was literally the first company to build a a swipe reader for use at the POS. Before that, they were in the ATM business with transports that read magstripe cards where they have continued to innovate the technology and make it more secure. PYMNTS.com recently had the honor to speak with MagTek's CEO Mimi Hart and asked her to share her thoughts on this potentially game-changing device.
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Your language speaks volumes about your credibility.
Posted by Jacqueline Chowdorow, 29/05/2010 3:25pm (2 years ago)
Hi Mimi!
Two quick comments; 1) an iphone is designed as a "disposable" device with a life of around 2 years versus the new VeriFone device that wraps around the iPhone and makes it both secure and more durable or their dedicated mobile POS terminal. Having worked at VeriFone for 9 years, I saw what happenned when you tried to use a device that was built for clerks to interact with and you took that same device and turned it around and let the consumer pound on it, it was not pretty. You cannot compare apples to oranges.
2) Chargebacks can come back to a merchant well past the 90 day mark.
Posted by Steve Klebe, 23/12/2009 5:15pm (2 years ago)
excellent interview...well balanced and fair
Posted by mark, 23/12/2009 9:07am (2 years ago)
Key sentence from the whole thing:
"The most disruptive thing Square can do, is add Security at the point of Swipe and still provide a low cost device".
Still, if the consumer goes for it, this could still change the game. Younger consumers trust twitter and facebook, who both want to sell your data. Younger consumers may also be the key to this device.
Posted by Simon Taylor, 09/12/2009 8:29am (2 years ago)
if the value prop is low cost device then that is hardly defendable. Big players have lot of room and can drop the price of wireless terminals very quickly. There are many low cost wireless terminals available.
The underwriting of merchants by financial institutions can not be taken out of the picture too.
Posted by freedom supreme, 05/12/2009 12:03am (2 years ago)
Update to last post - SCRAs (I had a typo was with SCRs) can protect card data and prevent card fraud!
Posted by Andy Deignan, 04/12/2009 9:43pm (2 years ago)
With iPhones being attacked/hacked, mag stripe readers (MSRs) attached to PDAs without the security of strong encryption and dynamic authentication can create a huge source of card data for criminals to target and steal. MSRs have evolved into SCRAs (secure card reader authenticators). SCRs can protect card data and prevent card fraud!
Posted by Andy Deignan, 04/12/2009 9:41pm (2 years ago)
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