Obama signs executive order to get the government ready for mobile payments faster

Obama signs executive order to get the government ready for mobile payments faster
Apple Pay is launching tomorrow (Monday), which many may claim is kickstarting a mobile payments revolution. Of course, the trouble with that idea is that the switch to point-of-sale (PoS) systems that can accept mobile payments is something that was coming anyway. On Friday, President Obama signed an executive order to help make that switch faster in the US government.

As we've explained before, two years ago, credit card companies committed to a switch to EMV systems by October 2015. EMV and NFC essentially go together in PoS systems, meaning all companies that switch their PoS terminals will get both. And, companies are highly motivated to switch, because after October of 2015, fraud liability will be on the retailer rather than credit card company, if the retailer isn't using an EMV system. But, President Obama is hoping to push that switch a little faster with a new executive order. 

The executive order is titled "Improving the Security of Consumer Financial Transactions", and comes on the heels of credit card hacks at retailers like Target, Home Depot, and others. The order (like all executive orders) has no power over those companies, but does mandate that various government agencies make the switch to EMV systems by early 2015 (some agencies have until January, some until March). The hope is that this move by the government will help convince retailers to make the change faster. If so, Google Wallet and Apple Pay will be accepted at more places sooner that you might have thought. 

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19 Comments

1. HASHTAG unregistered

It seems as if Apple had a talk with the President.

12. AlikMalix unregistered

Wow, once Apple Pay is out - government is finally doing something to benefit consumers. With this in place - fraud should decrease - signatures mean squat today - I signed my receipts with who knows what and they never checked my ID. I'm not getting a new phone till next year, so it should be pretty much a standard by then. Too bad Google and others couldn't make this push - you can't just slap an NFC on the phone and hope everyone on board - you got to get everyone on board - then introduce NFC. Once again Apple was not the first to do it, but the first to do it Right!

14. tedkord

Posts: 17357; Member since: Jun 17, 2009

As the article pointed out, this was coming with or without Apple Pay. It was decided two years ago. The reason for the government push is all the recent hacking of costumer credit card info. And Apple didn't, "do it right." Apple Pay is virtually identical to Google Wallet.

17. AlikMalix unregistered

What ever lets you sleep better.... But I didnt see all these merchants going on board when Google Wallet was announced, come to think of it, even some carriers Blocked it....

2. dorfoz

Posts: 156; Member since: Oct 18, 2011

Apple is like a vulture.. It waits for the opportune moment and strikes. Doesn't really pave the way, but rides the peak of technology. We all know nfc has been out for years. They just waited until the interest started peaking and then they include it on their devices. Just like 4k resolutions, it's out there but how many consumers have the tech? Give it 2 years, it'll be on the next idevice.

10. Philipand96

Posts: 103; Member since: Jul 12, 2014

Could not agree with you more and here is why Apple will receive 15c per transaction for those users that have the 4.7 and 5.5 inch iPhone5*** (sic not a typo but save it till last) I do not agree with the "vulture" reference as vultures do provide an ecological service. NFC is only, ONLY incorporated into the iPhone5*** to support Apple pay ALL OTHER NFC PROFILE HAVE (LIKE BLUETOOTH) been disabled “Apple pay” is another parallel service to EMV. It may (or imo NOT) motivate those who have chip & pin to add NFC POS (i.e. update POS to include NFC ) The article states that the cost of fraud was being passed from (say an illicit firm & / or employee) to the Credit Card company, post 10/15 they can’t Re chip & pin this shows a card was presented and a valid PIN entered Apple pay requires the person has a credit debit card, touchID biometrically authorises the transaction. [iPhone and credit card = ”Apple Pay “ no credit card NO WAY!] The card holder is held liable if the pin is used in conjunction with the card, Whilst FINGERPRINT ID can't be faked EMV has addressed that with the pin, fraud is in the main manual transactions . Required are; the card number / expiry date / CVV and delivery must be to the card holders’ address. HTTPS ( the padlock on web screens, my bank also does NOT display any account number in full!) I have a credit card that already has NFC built in so this gimmick getting your phone out is faster is nonsense, as there are more terminals which require a pin The argument Apple use are bogus, you will get a receipt with only the last four digits shown Nokia has had for years a wallet, NOKIA NFC phone have "full" NFC In order to pay for goods at an NFC terminal require the sim card to be a "Payment" sim card which I don’t know if it is already incorporated Security NFC is provided by having a Wallet pin In short if you pay by chip& pin a sales assistant won't have access to any details as Apple would have you believe. Fingerprint ID is the absolute best but any fraud now is are if protocols aren’t followed Re “NFC is only, ONLY incorporated into the iPhone5*** to support Apple pay “Apple will receive 15c per transaction, whether by internet HTTPS sale or NFC terminal NFC was added to tap into that market Apple pay is NOT phone related and those who in 2012 started a contract with the iPhone 5 have in 2014 just up?graded to a larger display iPhone5 as so little has changed the biggest is the larger display which is NO longer Gorilla glass http://www.phonearena.com/phones/compare/Apple-iPhone-5,Apple-iPhone-6/phones/7378,8346

15. tedkord

Posts: 17357; Member since: Jun 17, 2009

15c per $100, not per transaction.

19. Philipand96

Posts: 103; Member since: Jul 12, 2014

Apologies you are correct 15C per $100 transaction I did read the original PHONEARENA article dated 15/09/2014 but wrote my post incorrectly The last paragraph from "It’s worth noting that Apple Pay has gotten huge support by retail chains like Starbucks, McDonalds, and Walgreens to name a few, all of which will support the system. Some popular stores, however, will not accept the new system, and Wal-Mart and Best Buy are the two most prominent ones." NFC is ALREADY installed and the latter 2 despite Apple have no intention of replacing POS to include NFC Again 15C per $100 transaction, my bad.

3. fzacek

Posts: 2486; Member since: Jan 26, 2014

Hopefully Apple Pay and Google Wallet will have equal support among retailers...

4. MichaelHeller

Posts: 2734; Member since: May 26, 2011

That shouldn't be a worry. It would be very difficult for a retailer to accept one without the other. They will both work in the same places. As for marketing though...

5. fzacek

Posts: 2486; Member since: Jan 26, 2014

That's great. Lol, yeah, Apple is going to advertise the crap out of it...

6. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

It is becoming abundantly clear that the governments and corporations of the world want everyone to have a smartphone and everyone's money to be controlled via this smartphone. It is the end of cash. And of course, the smartphone needs to support remote kill. A reminder that you are the property of your government.

7. tigermcm

Posts: 861; Member since: Sep 02, 2009

as funny as this sounds i've tyhought the same. i can see my son in the very near future asking me what is he supposed to do with the money in his piggy bank smh

8. Chuck007

Posts: 1410; Member since: Mar 02, 2014

Can't possibly agree more. And every piece of technology being forced to use the cloud. Downloading your personal details without consent. It's terrible. For example, imagine my surprise the first time I installed Windows 8. At first glance, there didn't seem to be a way to use my PC without a Microsoft account. Sure there are workarounds, but the fact they are trying to cover it up like it isn't an option is certainly worrying.

9. Fellwalker

Posts: 538; Member since: Apr 04, 2014

Is this because he had his card declined in a resturant? Seriously, here in UK chip and pin (EMV) is great, and did reduce fraud. In London, contactless (NFC) is now available in most places. and apple is not necessary. Mind you, cheques (checks) are a rarity too. Payments can be made using Faster Pay, whereby a payment I send gets to the payees bank account literally in seconds. Soon, if someone does send me a cheque I'll be able to send an image of it to my bank instead of physically paying it in.

11. AlikMalix unregistered

Double post.

13. corporateJP

Posts: 2458; Member since: Nov 28, 2009

Did Obama actually do something constructive today? Wow...

16. AlikMalix unregistered

Post of the day!!!!!

18. Kaiser2007

Posts: 173; Member since: Nov 16, 2013

It's because his credit card got declined (according to post #9).

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