So cardholders will have to buy these devices to protect themselves and merchants and banks will have to upgrade their machines to accept signatures from these devices.
A signing device should cost peanuts. It's simpler than a low-end cellphone, isn't it? An IRDA port, a window, and a number pad, and a microprocessor, does this even need an IP stack?
Regarding retailers, the card industry and banks, it might be a good thing, in the long run, if they do replace 100s' of proprietary terminals with a little HTTP or REST server at point of sale. The same websites they use for conducting business in different contexts, can talk to the cash and carry customer.
I seriously doubt cardholders will go out and buy these devices even if it is only a buck (I suspect they won't feel too secure if the price is too low). They will all rush out and buy things like Pet Rocks and Rubik's Cube, but they are not likely to buy something to avoid a non-immediate threat.
Authenticating oneself at time of using a credit card, may not be the #1 use case for a signing device. I would be surprised to see the card community or banks support signing devices anyway, let alone, introducing them. Signing devices do enable creditworthy customers to more easily establish credit directly with retailers, suppliers, or other lenders. Look how ebay has gone from zero to USD 10's of billions turnover, on even the most elementary reputation framework. http://news.google.com/news?hl=en&q=ebay+billion Here is a fictional conversation in 2005, when signing devices are common... Your phone and mine: he says, "ok I'll buy it." Turns on his Studly signing device, and enters his 5-digit PIN code. BZZT He gets a little nervous. If he keys it wrong 2 more times, his device will erase its keys and certificates. He gets it right. he enters Y900 in his Studly. Points at the product and snaps a .jpg picture, and presses SIGN. (creating a legally binding, digitally signed promise to pay including the URI of his last-resort settlement provider usu. a bank) She points her hippocrit at his device and scoops up the promissory note. in 35 milliseconds it goes out over the arapcloud, lookin for a home... 6 seconds later her SMS beeps ...--... A digitally signed receipt from her hairdresser thanking her for her payment of Y900 and her new balance has been reduced to 32,100. at the same second, his Studly beeps.. a note from his employer, that Y900 has been deducted from this week's paycheck, requesting signature to release (since he is a belts and suspenders type of guy.. he setup his deducts for immed confirm. every time.... ) No bank. No server. No middleman. Just an open marketplace of settlement routers, mostly robots, mostly free, operated by all of us. http://www.gldialtone.com/arapcloud.htm Todd Todd Boyle CPA 9745-128th Ave NE Kirkland WA International Accounting Services, LLC www.gldialtone.com 425-827-3107 editor, AR/AP everywhere www.arapxml.net http://www.gldialtone.com/devices.htm http://www.gldialtone.com/hippocrit.gif
