Looking at the difference between “new ways to pay” and “new payment types.”
New way to pay?
There are thousands of new and digital payment companies around the world, and while here at Quisk we are larger than most, the vast majority offer people a new way to pay. Many of these consist of smartphone apps or other interfaces that offer an incremental improvement in convenience and deliver a new way to pay using existing payment types. Typically, bank debit or credit cards or prepaid cards from Visa, MasterCard and American Express are entered into a mobile app or website and make it easier to pay with a card.
The most visible—in terms of U.S. media coverage—mobile payment solution, Apple Pay, also enables a new way to pay via the hardware and software within the device itself. While Apple Pay innovations have been focused on the NFC and security technologies built into the iPhone to enable an improved consumer payment experience, it’s important to recognize that this new solution still utilizes existing card-based payment types. Apple Pay Support provides a detailed payment options list here.
At Quisk, we focus on customers outside of the U.S. and Europe, where low access to credit or financial markets has created even more mobile payment solutions, and much greater innovation and diversity. Nevertheless, the vast majority of mobile money projects are driven by Mobile Network Operators (or phone companies) around the world and creating new wayt to pay for minutes or data for mobile phone plans. To this end, Safaricom’s M-pesa in Kenya is recognized as the most successful MNO-led mobile money implementation, largely due to: 1) the central bank of Kenya enabling MNOs to provide banking services, and 2) the fact that Safaricom had by some accounts more than 90% market share in Kenya, which helped to create the needed “network effect.” If you live in a country with more than one mobile provider or more than one bank, you may have noticed rather a lot of new ways to make a payment.
Or new payment type?
In contrast to the many new ways to pay, new payment types include the earliest use of cash back in 600 B.C., the introduction of checks in the early 800’s, the credit and debit cards of the 1950’s, cryptocurrencies like today’s Bitcoin, and all digital payment systems like Quisk today (Note: Unlike Bitcoin, when you deposit money into a Quisk account, you do so in your countries currency, and your funds are regulated and stored safely in a bank).
Hopefully you can see the difference between creating a fundamentally new payment type like a cryptocurrency or a digital cash like Quisk and apps or electronic wallets that offer a myriad of new–and often very useful–ways to pay.
At Quisk, we believe our efforts to develop a new, fully regulated digital cash payment type is worth the effort: Rather than merely adding convenience, we want to leverage the benefits of modern technologies to avoid the problems and costs associated with cash and cards and provide customers of any bank or phone company with a simple, trustworthy, and affordable new payment type.