by Glenbrook eCommerce Market Analysis Reports • 23 April 2005
Cyphermint has teamed up with a hometown pizza place – Chris’ Pizza of Marlborough, Massachusetts – to conduct what it believes to be the first mobile payment featuring a home delivered pizza purchased with the mobile payment method “P2Pizza”.
If you live in Marlborough, MA you can call your local pizza joint and order your favorite pie with all the toppings plus extra cheese for delivery. When the pizza is delivered to your door 30 minutes later, the driver will process your payment with his cell phone. All you have to do is add the tip and confirm the amount on your cell phone. Both parties get an instant confirmation. It’s that easy; it’s that fast. No need to fumble for cash or a credit card to get a slice of the pie!
As depicted in the scenario above, at 2:34 pm, Chris’ Pizza delivered 3 pizzas and an antipasto to the home of Marlborough resident, Mark McMurray. Mark successfully paid for the pizza in real-time with his cell phone and was also able to include a $5.00 tip in his mobile phone transaction.
“I love this idea,” said Chris LaFlamme, owner of Chris’ Pizza. “With P2Pizza, I don’t have to worry about my drivers carrying cash. I just need to make sure their cell phones are charged up and ready when they go out on their deliveries.”
The P2Pizza concept represents the P2P (person-to-person) payment transfer function made via wireless delivery using Cyphermint’s secure and innovative mCommerce solution, PayCash(tm) Mobile. Because of PayCash Mobile’s quick-pay functionality, the entire transaction took less than five seconds. The account is linked to a stored value card (SVC), which allows users to load funds onto the account as well as withdraw money at any ATM in the network. Users can also easily customize their menu offerings to include shopping, bill payment, subscription services, donations and person-to-person transfers.
“It was so convenient,” said McMurray of Farmington Circle, Marlborough. “When the pizza arrived at my door all I did was add the tip and in one click it was paid for. It was as if I pointed my phone at the pizza and paid for it!” Mark chuckled.
PayCash Mobile uses a secure text messaging service (SMS) with an encrypted key that provides a unique digital signature for each transaction. Cyphermint was recently awarded the patent for RSA signature, which is used to create a virtual coin to transfer funds from different accounts over the Internet secured by its proprietary 1024 bit encryption. PayCash Mobile transactions are in real-time and funds are transferred to and from your account instantaneously and securely to the merchant’s account. It does not require complicated downloading and works with any Internet-enabled device. The user’s PayCash account can be managed across any mobile platform such as a cell phone, smartphone, personal computer or any PayCash enabled kiosk day or night, as a supplement and complement to busy and demanding lifestyles.
With PayCash Mobile, almost any retail transaction can be done with your cell phone. The merchant basically sends the consumer an electronic alert for the amount of purchase to the consumer’s mobile device. When the consumer clicks on the “buy” button linked to the alert, the merchant receives the payment from the credit card that is linked to the consumer’s account and the goods are shipped to the address on the account or can be picked up directly from the merchant. Because Internet-enabled phones are used for the transaction no additional hardware needs to be purchased unlike RFID payment options being tested in the market today.
PayCash Mobile is a secure, easy to use payment system designed for today’s consumers on the move. It’s multi-lingual, handles just about any currency and works with any carrier. Cell phones and other wireless devices have become such integral parts of consumers’ lives that the transition from brick and mortar banking to financial applications via the mobile device has made the cell phone more important and relied upon than the personal computer.
The P2Pizza pilot took place on September 14, 2005. Cyphermint intends to rollout this easy-to-use payment system to other pizza and delivery franchises in Boston before going nationwide by the end of this year.
“There are approximately 2 billion mobile phone users worldwide, who already browse the Internet, check their email, and download games and music,” said Joe Barboza, President and CEO of Cyphermint. “The next logical step is to shop and pay for goods and services on their cell phones. Marlborough, MA will be setting the stage for a unique mobile application that will surely be an attraction to college students and residents alike.”