Mobileglobal's Blog

October 26, 2009

Premium SMS based transactional payments

Filed under: Uncategorized — mobileglobal @ 4:49 am
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This is where the consumer sends a payment request via an SMS text message to a short code and a premium charge is applied to their phone bill. The merchant involved is informed of the payment success and can then release the paid for goods.

Since a trusted delivery address has typically not been given these goods are most frequently digital with the merchant replying using a Multimedia Messaging Service to deliver the purchased music, ringtones, wallpapers etc.

A Multimedia Messaging Service can also deliver barcodes which can then be scanned for confirmation of payment by a merchant. This is used as an electronic ticket for access to cinemas and events or to collect hard goods.

Transactional payments have been popular in Asia and Europe but are now being overtaken by other mobile payment methods such as mobile web payments (WAP) and Direct Mobile Billing for a number of reasons:

  1. Poor reliability – transactional payments can easily fail as messages get lost
  2. Slow speed – sending messages can be slow and it can take hours for a merchant to get receipt of payment. Consumers do not want to be kept waiting more than a few seconds.
  3. High cost – There are many high costs associated with this method of payment. The cost of setting up short codes and paying for the delivery of media via a Multimedia Messaging Service and the resulting customer support costs to account for the number of messages that get lost or are delayed.
  4. Low payout rates – operators also see high costs in running and supporting transactional payments which results in payout rates to the merchant being as low as 30%.
  5. Low follow-on sales – once the payment message has been sent and the goods received there is little else the consumer can do. It is difficult for them to remember where something was purchased or how to buy it again. This also makes it difficult to tell a friend.

Premium SMS based transactional payments

Filed under: Uncategorized — mobileglobal @ 4:47 am
Tags: , ,

This is where the consumer sends a payment request via an SMS text message to a short code and a premium charge is applied to their phone bill. The merchant involved is informed of the payment success and can then release the paid for goods.

Since a trusted delivery address has typically not been given these goods are most frequently digital with the merchant replying using a Multimedia Messaging Service to deliver the purchased music, ringtones, wallpapers etc.

A Multimedia Messaging Service can also deliver barcodes which can then be scanned for confirmation of payment by a merchant. This is used as an electronic ticket for access to cinemas and events or to collect hard goods.

Transactional payments have been popular in Asia and Europe but are now being overtaken by other mobile payment methods such as mobile web payments (WAP) and Direct Mobile Billing for a number of reasons:

  1. Poor reliability – transactional payments can easily fail as messages get lost
  2. Slow speed – sending messages can be slow and it can take hours for a merchant to get receipt of payment. Consumers do not want to be kept waiting more than a few seconds.
  3. High cost – There are many high costs associated with this method of payment. The cost of setting up short codes and paying for the delivery of media via a Multimedia Messaging Service and the resulting customer support costs to account for the number of messages that get lost or are delayed.
  4. Low payout rates – operators also see high costs in running and supporting transactional payments which results in payout rates to the merchant being as low as 30%.
  5. Low follow-on sales – once the payment message has been sent and the goods received there is little else the consumer can do. It is difficult for them to remember where something was purchased or how to buy it again. This also makes it difficult to tell a friend.

October 24, 2009

Mobile Wallet

Filed under: Uncategorized — mobileglobal @ 8:32 am
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Would you like it if one day, you forget to bring your wallet, yet you can still pay for your bus ride or buy a drink from a vending machine? Or you forgot to bring your staff pass, yet you can still enter your office building. When you finally got home, you can open your house doors despite having left the keys home too.

All these and more are enabled by a new technology called mobile wallet.
Mobile wallet is mobile phone that has functionality to supplant a conventional wallet and more. Unlike mobile commerce, mobile wallet is a much more versatile application that includes elements of mobile transactions, as well as other items one may find in a wallet, such as membership cards, loyalty cards and travel cards. It also stores personal and sensitive information like passport, credit card information, PIN codes, online shopping accounts, booking details and insurance policies that can be encrypted or password-protected. The technology aims to reduce the number items people will need to carry around.

With mobile wallet, the user can use their mobile phone to pay transactions at merchants that accept mobile payments. To do this, the user just needs to upload digital cash from a credit card to their mobile phone and swipe their mobile phone at payment counters. They can also swipe their mobile phone at ticketing machines. Mobile wallet can be used as a virtual train ticket where customers just wave their mobile phone across the checkout stations instead of using separate swipe cards. Another use is as an identifier to log on to a computer at Internet kiosks. The data is exchanged by mere proximity, without the need for physical contact. Users who use the same mobile wallet applications can also exchange data with one another, example bank account numbers when they need to perform bank transfers among one another. There are several technologies that could enable mobile wallet operations of handsets, including Near Field Communications (NFC), Radio Frequency (RFID), bar codes, and visual recognition.

According to InStat, a high-tech market research firm, as many as 25 million wireless phone subscribers in North America could be using their mobile phones as mobile wallets by 2011. One of the first carriers to launch mobile wallet is NTT Docomo that uses its Felica system to allow those who carry compatible 3G handsets like Fujitsu’s F900iC and other models by NEC, Panasonic, Sharp, Mitsubishi and Sony Ericsson to make payments using their handsets. A credit card-sized Sony smart card powers the system. It holds a chip which can be loaded with personal data.

With a subscription, the wallet phones work by sending data at high speeds and securely over the DoCoMo network. Special readers can also be built into cash machines and cash registers to recognise the transactions. The handsets have built-in security to stop others using the service by using password protection or fingerprint scanning.

October 4, 2009

Study:What is a Mobile Wallet from a Regulatory Perspective

Filed under: MOBILE WALLET FUTURE — mobileglobal @ 7:20 am
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There can be a lot of confusion about the ‘mobile wallet’ and its regulatory implications.

To help clarify the regulatory implications of a mobile wallet, the analogy with a traditional leather wallet can be helpful. A leather wallet has no regulatory implication per se. It is just a container for different payment instruments, such as cash and cards. This is also true for the mobile wallet. The mobile wallet is just a menu on the phone, which provides access to different payment instruments. The payment instruments are regulated as opposed to the wallet.

The equivalent to cash in the leather wallet is e-money in the mobile wallet. E-money is either regulated by e-money regulation or by traditional banking regulation. If there is no e-money regulation, then the e-money can only be held in a bank account held by a bank. If there is e-money regulation, the mobile operator can hold the prepaid cash of its customers in a secured float. In this case the customer can store money in a prepaid account in the wallet, i.e. the mobile operator can offer the customer the ability to store money in the mobile wallet.

The equivalent of a credit or debit card in the wallet is the option to choose a card provider. The customer effectively uses a card processing provider and the payment is processed in a similar way as a traditional card payment. As in the real world, it is the card payment processor who is responsible for regulatory compliance.

Wallet of the future? Your mobile phone

Filed under: MOBILE WALLET FUTURE — mobileglobal @ 6:57 am
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(CNN) — These days, it seems that most Americans carry three things in their pockets or purses at all times: keys, a wallet and a phone.

A survey says 15 percent of phone users in Japan use their phones to make payments.

A survey says 15 percent of phone users in Japan use their phones to make payments.

But, in the not-too-distant future, you may be able to leave the wallet and the keys behind.

The mobile phone is staging a coup.

Some analysts say that within five years, mobile phones in the United States will be able to make electronic payments, open doors, access subways, clip coupons and possibly act as another form of identification.

These futuristic uses for phones are becoming reality in countries like South Korea and Japan, which typically are ahead of the United States when it comes to mobile technology.

A 963-person survey by Forrester Research, for instance, found that 15 percent of Japanese mobile phone users make payments and purchase products in stores with their phones.

The ideas have been tried in the United States too, but with less success.

In the late 1990s and early 2000s, banks and cell phone makers started conducting trials with U.S. customers. Limited groups of people were given the ability to scan their phones to make payments, enter stadiums and access public transit.

Those phone-forward guinea pigs didn’t like the new functionalities as well as expected, and the ideas never took off on a commercial scale, said Ed Kountz, a senior analyst at Forrester.

But Kountz said there’s now resurgent interest in merging phones with wallets and keys. In 2009, people are more dependent on their phones than they used to be.

“I think it is different this time around,” said Kountz, who believes that phones in the United States will be used to make mobile payments within five years.

“The overall utility of cell phones has expanded, and more consumers are using the data aspects of cell phones,” he said.

what i suggest is the mobile wallet technology has to link with banking and finace industry

about me

Filed under: Uncategorized — mobileglobal @ 6:55 am

keep focuing on the mobile industry especially iphone and the mobile wallet feature and technology

Texting While Driving Banned for Federal Staff

Filed under: Mobile company news — mobileglobal @ 6:49 am
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Federal employees will not be allowed to text while driving, according to an executive order signed Wednesday night by President Obama.

Luke Sharrett/The New York Times

Department of Transportation Secretary Ray H. LaHood on Thursday announced the measures aimed at curbing what he called a deadly epidemic of distracted driving.

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The order covers federal employees when they are using government-provided cars or cellphones and when they are using their own phones and cars to conduct government business.

Separately, the federal government plans to ban text messaging by bus drivers and truckers who travel across state lines, and may also preclude them from using cellphones while driving, except in emergencies.

Ray H. LaHood, the transportation secretary, announced those and several other measures on Thursday, aimed at curbing what he called a deadly epidemic of distracted driving.

He made his announcement at a conference in Washington that included 300 academics, law enforcement officials, legislators, telecommunications and automobile industry representatives, as well as families of people killed by motorists who were talking on cellphones or text messaging.

“This meeting is probably the most important meeting in the history of the Department of Transportation,” Mr. LaHood said at the end of the two-day conference. He added that the order to restrict text messaging by federal employees behind the wheel “sends a very clear signal to the American public that distracted driving is dangerous and unacceptable.”

A spokeswoman for the Transportation Department said the order took effect immediately and involved 4.5 million federal employees, including military personnel.

According to the National Safety Council, a nonprofit safety advocacy group, several hundred companies have banned employees from using their cellphones while driving. That group says such bans improve safety, help limit the liability of employers when accidents do occur, and free employees from feeling pressure to respond immediately while they are behind the wheel.

The rules affecting interstate truckers and bus drivers will take longer to put in place and may be more nuanced.

Mr. LaHood said the rule would “ban text messaging altogether” by such drivers. But Rose A. McMurray, acting administrator for the Federal Motor Carrier Safety Administration, which regulates the trucking industry, said there would first need to be a definition of “text messaging.”

The question facing the trucking industry in particular is what will become of the computers that thousands of long-haul truckers use in their cabs to communicate with dispatchers and do other work.

Research from the Virginia Tech Transportation Institute shows that these devices can markedly increase the risk of causing a crash or near crash if used when driving. Its research also shows that truckers often bypass warnings to not use the devices while driving.

Ms. McMurray said she expected that it would take several months to complete a rule governing buses and trucks, during which time the agency would study the “array of devices” used by these drivers.

She said that she expected to ban truckers from texting with their phones and also to ban behavior “that would require fingers to manipulate a keyboard, or to take the eyes off the road” to use a keyboard and, possibly, other technologies used for typing.

The trucking industry has said it is concerned that texting bans in general could have unintended consequences of interfering with devices that truckers have come to rely on.

Ms. McMurray said it was also not yet clear how the rule would restrict the use of cellphones by these drivers. She said it could include a ban altogether on the use of such phones by interstate truckers and bus drivers, except in cases of emergency, but she said that rule would also take time to complete.

She said the need to take such steps was in part “because of the size of the vehicles.”

The distracted driving conference provided a forum for a range of different interests hoping to raise awareness of distracted driving and influence how the issue is addressed. The speakers included Senators Charles E. Schumer, Democrat of New York, and Robert Menendez, Democrat of New Jersey, who have introduced legislation to force states to ban texting while driving or lose federal highway funds.

Some people left the gathering concerned that the conference emphasized texting bans over risks posed by drivers talking on cellphones. That issue was discussed, but less so than texting. Critics said the texting issue seemed like an easier issue to address politically.

Banning texting “makes people feel good and makes it look like you’re doing something, but you’re not tackling the more difficult problem,” said David Strayer, a professor at the University of Utah who studies distracted driving. “It misses the larger point.”

Apple tries to patent method to lock down your mobile device

Filed under: Mobile company news — mobileglobal @ 6:48 am
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One of the ways Apple’s iPhone succeeded where other phones failed is that it doesn’t let carriers install custom firmware that locks out features of the phone. However, Apple doesn’t appear to be above giving carriers a way to be able to do that, even with the iPhone. The company filed a patent application earlier this year (published yesterday) for “provisioning” services on a mobile device based on a custom carrier profile.

In the patent filling, revealed by Slashdot, Apple describes a unified system for allowing a carrier-defined list of approved and unapproved features and applications to be uploaded to the device during activation, essentially allowing carriers to restrict whatever features or applications it decided not to “allow” on its network. “[M]obile devices often have capabilities that the carriers do not want utilized on their networks,” according to the patent application. “For example, a mobile device may be designed with Bluetooth functionality, but the carrier may wish to prevent its users from taking advantage of that capability. Various applications on these devices may also need to be restricted.”

Using a carrier profile to accomplish this has two main “benefits” over using custom firmware. One is that it works on systems, like Apple’s iPhone, that require that code be digitally signed by a “trusted authority.” In the past, carriers could cripple the features of mobile devices by tweaking its firmware. Custom firmware from AT&T wouldn’t have Apple’s signature, and would therefore not run. The other is that it allows easy customization for each carrier. Otherwise, Apple would have to be in charge of creating custom versions of iPhone OS, and likely implementing some system that would limit each version of the firmware to customers of each particular carrier—both would be a real hassle for Apple, and possible for carriers and users.

When the iPhone was released, none of its features were disabled, since Apple controlled the firmware and it was the same for every device. In fact, Apple was even able to get carriers to implement additional functionality to enable its famed Visual Voicemail feature. The move suggested that Apple had turned the table on carriers—instead of carriers dictating phone features to manufacturers, manufactures could instead innovate by building in the features they thought would bring the best value to users. And for the most part, the iPhone has fulfilled that promise.

However, we have seen at least a few counterexamples of this. One is the disabling of tethering capability included in iPhone OS 3.x in some areas (like *cough* the US), which is in fact controlled by the very carrier profile mechanism that Apple proposes. Also, certain applications, such as SlingPlayer, have been limited from streaming video over the 3G network due to AT&T’s requirements (and we note that this is despite the fact that some applications are allowed to do it). Perhaps even more unfair is the fact that the restriction persists even in areas where there is no restriction on streaming video over the cell network. Apple’s proposed system would at least allow the capability to work on regions where it is not restricted, and that is about the nicest thing we can say about what Apple proposes.

For example, a carrier may wish to provide an enhanced service which utilizes the global positioning system (GPS) functionality in a mobile device. Carrier may wish to charge a premium for this service, so it may configure carrier provisioning profile to disallow third party applications from accessing the GPS functionality in device, and instead only allow applications digitally signed by carrier (or another entity affiliated with carrier) to access the GPS services in device.

As discussed above, computing devices may be configured to require that code executed on device be authorized by trusted authority either by digitally signing the code or by some other authorization routine. In some mobile device platforms, code signed by trusted authority may be fully trusted by [the] operating system and is therefore generally permitted to execute on device without restriction. A potential conflict may arise in a situation where device ships with a trusted application which utilizes resources that carrier does not wish to allow. In order to avoid this problem, policy service may be configured to prioritize the carrier provisioning profile entitlements.

Here the implications are quite ominous. Imagine you could only use the GPS on your iPhone with AT&T’s Navigator app—no TomTom, no Navigon, no other options, period. The app is free (for now), but you’d be stuck with a $10 per month charge to use it, and it only works where there is a data connection to access map data. Imagine further that AT&T decided to kill GPS capabilities in the included Maps app—it’s not the greatest way to do real-time navigation, but it works in a pinch. Let’s just say we think such a scenario would pretty much suck, and we can only imagine the backlash it would cause from users.

With the method described in the patent, Apple appears to be giving carriers free rein to disable whatever feature or application it decides it could otherwise “monetize” by providing its own service. This tactic is one that has drawn the most ire from mobile customers, and one that the iPhone itself had originally prevented. It flies in the face of net neutrality principles, which according to FCC chairman Julius Genachowski should extend to wireless networks as well. The realities of the current mobile market may make such methods an unpleasant necessity in the short term, but Apple shouldn’t be building and patenting systems that allow mobile carriers to continue their most egregious anti-consumer practices. And it certainly can’t endear a company that is still under FCC investigation related to the Google Voice app rejection.

MOBILE WALLET FUTURE

Filed under: MOBILE WALLET FUTURE — mobileglobal @ 6:47 am
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The American author and critic Henry David Thoreau said “our life is frittered away by detail: simplify, simplify”. As Near Field Communication (NFC) transactions emerge from their infancy into the mainstream this year, the desire to simplify the lives of both retailers and consumers is one of the main drivers behind its adoption. However, operators also stand to benefit from developments in and consumer adoption of the technologNFC is a short-range wireless connectivity standard designed for simple and safe communication between electronic devices. Applications of NFC technology include contactless transactions, such as the Oyster system that has been in use on London’s transport system since 2003. Having proven their worth, contactless credit and debit cards issued by the major banks will soon be in everyday usYet this technology can be taken a stage further when combined with mobile handsets. Mobile NFC technology allows a single handset to contain multiple functionalities, such as payment, content sharing, ticketing and interactions with smart posters and other NFC media. Essentially, anything that was once paper or plastic-based can now be stored securely on a mobile phone. In essence, over the next 5 years, your mobile phone will become your digital “wallet”, with an integrated user interface that will allow consumers to easily select which service they wish to use.

However, to be successful NFC technology must be designed with the end user in mind. For this reason, O2 pioneered the UK’s first large-scale NFC trial with 500 participants from November 2007 to the end of May 2008.  The aim of the trial was to assess customer demand for NFC on mobile phones and to streamline the user experience. Participants were able to use their mobile to travel on London’s transport system or to make payments in retail stores, simply by touching their phone against an NFC reader. The trial was run in cooperation with a range of industry leaders including Transport for London, Barclaycard, Visa Europe, TranSys, Nokia and AEG.

Having recently celebrated the first anniversary of contactless payments in the UK, using dual mode plastic cards, we are entering a key time for mobile operators, handset manufacturers, banks and retailers. The desire for services to move from plastic cards to mobile handsets is gathering momentum and it is imperative that these organisations now come together to flesh out how this eco-system will function on a national scale. This is essential because, while the benefits of mobile NFC transactions cannot be denied, problem areas still exist that must be addressed before this technology can become widespread.

Retailers, as well as consumers, stand to benefit most from the mobile payment revolution. Through fast, contactless transactions, retailers can greatly increase footfall through their stores. The speed of mobile payments is substantially faster than either cash or chip and Personal Identification Number (PIN) systems. Thus mobile payments have the potential to reduce queues, improve the customer experience and allow more purchases to be made in a set time, such as lunch hours. These instant transactions also mean that retailers need to invest less time at the end of each day undergoing a tedious cash-reconciliation process. Furthermore, since tickets and discount vouchers can be sent directly to NFC handsets, retailers will need to spend less time and money printing and posting tickets to customers.

The effect of mobile payment technology on consumers will also be profound. By replacing wallets, it means one less thing that consumers have to remember to take with them every day. As a whole, the technology will allow transactions to become faster, easier and more straightforward to monitor. For example, pre-paid store-cards can be loaded onto a phone’s SIM card, allowing consumers to control exactly how much money they spend on different expenses and ensuring they never exceed their budget. Regular mini-statements of their last five transactions can be accessed through the user interface and alerts can be sent to customers by text message. Users can also instantly check balances on their handset.

NFC has the potential to herald the emergence of a new revenue model for network operators and handset manufacturers, although there needs to be a consensus on how such a model would operate. The results of our O2 Wallet trial revealed that customers would be prepared to pay an annual charge for the added convenience of mobile NFC transactions. In addition, 47% of the participants would be influenced in their choice of mobile handset by the addition of a payments feature, whilst 87% said they would be influenced by the ability to use Oyster via their phone.

The implementation of mobile payments across the UK requires banks to extend contactless infrastructure to support NFC. In addition, consumers will demand a choice of handsets that support NFC transactions. Nokia has been leading the NFC handset space, but other vendors are starting to make significant investments in the technology. If handsets are to take over from the traditional wallet, manufacturers must also solve a number of current technological restrictions, such as improving battery life and operating systems. Sustainable business models need to be agreed between organisations across the different sectors involved in NFC, such as transport, banking and retail. Until now the emphasis has been on developing the technology behind NFC rather than creating the commercial infrastructure to support it. GSM operators have perfected the technical standardisation of NFC technology, with very few approaching NFC from a marketing and customer experience perspective.

As NFC payment technology becomes more widespread and transaction values increase, handsets will be ideally placed to add an additional level of security, since a PIN number can easily be entered onto the handset when a transaction is made. Additionally, handsets could require users to enter a passcode whenever an NFC transaction takes place.

In the immediate future, operators need to keep abreast of what banks are doing in this sector and must continue to ask what they can do to add value to the NFC transaction model through mobiles, for both corporate and consumer purposes. NFC will only be financially sustainable and garner mass market appeal if it has multiple uses. Close partnerships with other organisations will be essential to ensure a good quality customer experience. The UKMCF, a consortium of mobile operators in the UK, aims to develop a shared vision of what future NFC commercial services will look like and how they can simplify our lives.

Blaze Mobile Wallet

Filed under: MOBILE WALLET FUTURE — mobileglobal @ 6:45 am
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Blaze Mobile Wallet transforms your cell phone into a versatile, user-friendly mobile commerce application that enables fast and easy purchases, fund transfers, banking, and personal finance management. Blaze Mobile Wallet lets you purchase movie and event tickets, manage bank accounts at more than 8,000 supported financial institutions, view electronic receipts, and quickly create expense reports. With the addition of the Blaze™ Mobile Prepaid MasterCard® PayPass™ Sticker . a simple wave of your iPhone over a retailers’ supported POS terminal is all it takes to make purchases at thousands of locations, including McDonalds™, 7-Eleven™, CVS Pharmacies™, AMC theaters™, Regal Theaters™, and many more. Blaze Mobile Wallet also offers valuable location based services such as maps and points of interest, including ATMs, restaurants and more – all in the palm of your hand.

Summary of Features:
Ticketing – Purchase movie tickets up to 7 days in days in advance and don’t worry about waiting in line or missing part of the movie. The movie ticket is stored in your Blaze Wallet, so you don’t need to print out a ticket. Sporting events, concerts, and other event ticketing will be available in the near future.

Mobile Banking – Get account balances, account limits, and transaction history from over 8,000+ financial institutions, including Bank of America, Citibank, Chase, WaMu, Wells Fargo, Capital One and many others. Review all of your receipts from all of your accounts in a single, integrated view.

Funds Transfer – Transfer funds from a variety of different bank and credit card accounts.

Expense Reports Save time by creating expense reports quickly and easily by simply selecting the desired transactions from your digital receipts in any account, including credit cards, debit cards, prepaid cards, and checking/savings accounts.

Loyalty and Rewards Programs – Obtain balance and account information for your favorite loyalty and rewards programs. Imagine all your frequent flyers miles, hotel rewards points, etc. all at your finger tips without having to carry all those cards.

Fast and Easy Payments – Blaze through the check out! Instead of paying cash or digging for your credit card, simply wave your iPhone affixed with the Blaze™ Mobile Prepaid MasterCard® PayPass™ Sticker at POS terminals for thousands of participating merchants such as McDonalds™, 7-Eleven™, CVS Pharmacies™, AMC theaters™, Regal Theaters™, and many more. Your transaction is complete in a few seconds. To obtain the Blaze™ Mobile Prepaid MasterCard® PayPass™ Sticker, register at blazewallet.com

Points of Interest- Find nearby points of interest such as restaurants, shopping malls, ATMs, etc. Get maps and turn-by-turn directions.

Please send feedback to us at support@blazewallet.com. We will respond to your email within 24 hours.

Watch the video of a customer blazing through the check out at various stores http://www.youtube.com/watch?v=E2gktN–bqs

Follow us on Twitter at http://twitter.com/blazewallet

Become a fan on facebook at http://www.facebook.com/pages/Blaze-Mobile-Wallet/111573681981

Join our blog at http://blog.blazemobile.com:8099/blog/

Blaze ™ and the Blaze Logo are trademarks or registered trademarks of Blaze Mobile, Inc.. All other trademarks are the property of their respective owners. Patents registered and pending. MasterCard is a registered trademark and PayPass is a trademark of MasterCard International.

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