Open Intelligence / Web 3X (Social + Mobile)

It normally costs $30 (£19) a month. However, Amazon is currently offering a year's worth of free storage as part of a promotion, which Tor developers believe their users will qualify for.

Amachai Shulman, chief technology officer of data security firm Imperva believes that cloud services could have a big impact on Tor. "It creates more places and better places to hide," he said.

Tor is also used by people wanting to share images of child abuse. Hacktivist group Anonymous recently launched Operation Darknet which targets such abuse groups operating via the network. "There is an ugly face to Tor," said Mr Shulman. "Studies suggest that most of the bandwidth is taken by pirated content."

Imperva research estimates that there are currently "a few thousand" exit nodes on Tor - the points at which communications reveal themselves on the wider internet.

Brian Waring, VP of marketing and category for Starbucks in the UK, says: “There’s no doubt that mobile payments are going to be the future of shopping, but it’s not clear how it’s going to develop. We just didn’t want to wait. Ours is so simple and it enhances the whole experience for customers.”

It introduced the option in the US in early 2011 and claims 20 million payments have been made using the technology in its 6,800 US stores.UK customers will also be able to use the app in international Starbucks stores that offer the capability as it updates to give the cash balance in the local currency.

Around 45 million people in the UK use a mobile phone, and 49% of mobile users surveyed use their device to purchase products at least once every three months. But there is still a big demand for in-store purchases too, as we saw with London’s Oxford Street retailers gearing up for Christmas by introducing a number of tech initiatives to help capitalize on the growing m-commerce trend.

So the real prediction here is that the uptake of mobile payment technology will increase significantly over the next 4 years – something that most people would probably agree with. But at the rate we’re currently going at, and with the likes of NFC technology gaining momentum in the micro-payment sphere, cash could be under threat sooner than we may otherwise have realized.

“We’ll see a huge change over the next few years in the way we shop and pay for things”, says Carl Scheible, Managing Director of PayPal UK. “By 2016, you’ll be able to leave your wallet at home and use your mobile as the 21st century digital wallet. Our vision of money is to enable you to pay for something from wherever you are, whatever device you’re on – a PC, mobile phone, tablet, games console and a whole lot more.”

Indeed, Scheible continued by saying that it will take another 4 years before we’ll see the real beginning of money’s digital switchover in the UK, but he stopped short of any discussion relating to a ‘cashless society’. “We’re not saying cash will disappear entirely, but we’ll increasingly use our phones and other devices rather than our wallets to pay in-store as well as online”, he says. “The lines between the online world and high street will soon disappear altogether. Children born today will become the UK’s first ‘cashless generation’. It will be completely natural for them to pay by mobile.”

PayPal’s findings are based on interviews by Forrester Consulting with 10 senior executives from major UK retailers and other businesses, with a combined turnover of £85bn.

By 2016, it’s thought that UK mobile retail sales will hit £2.5bn. PayPal currently has over 14m active UK accounts, over a million of which have been used to send a mobile payment. Around the world, PayPal expects to process more than $3.5bn (£2.25bn) in mobile payments this year, five times more than in 2010.

With NFC terminals and providers will working hard to finalise their offerings for the next wave of NFC-enabled smartphones, Starbucks has stolen a march on other retailers with its mobile coupons. Despite a love for queuing, we predict this app will reduce coffee shop lines and hasten the injection of caffeine into commuters all over the UK.

Brian Waring, vice president, marketing and category, Starbucks UK and Ireland, said: "Customers want to be served quickly, but fewer want to use cash.

Starbucks first launched the app in the US earlier this year across 6,800 stores, which have since processed more than 20 million mobile transactions.

Each consumer with a reward card will be given a unique barcode that will appear on the app and can be scanned at the till.

"We wanted to find a way for them to pay in the quickest way possible. Because our customers want it, we have created our own custom-built mobile payment technology rather than waiting for the near field communication technology which is currently not widely available.

"We're always thinking of new ways to add value to our customers and give them more reasons to choose Starbucks."

Starbucks teamed up with Apple in October this year to launch a digital initiative called "Pick of the week", offering its customers a free selected iTunes music track or book to download.

The ‘Telefonica Wallet’ is enabled on BlackBerry Bold 9900 (pictured below), Curve 9360 and Curve 9380 models, allowing staff to make payments and access the company offices by tapping their smartphone against a reader.

The system replicates a physical wallet, allowing users to choose from a range of cards to make transactions or simply check account balances.

Mark Brill, CEO of Formation, warned that the test won’t mean much unless Telefonica and RIM can learn something from it.

Brill, who also chairs the DMA mobile council, believes the dual functionality of the Telefonica Wallet could be key to its success.

“Touch payments have been available in debit cards for some time but there hasn’t been a major take up. It is difficult to force new behaviours on people, you have to tie it in with something they are already doing,” said Brill.

Phone manufacturers would certainly have us believe that NFC is the future, and PayPal claimed today that we will be living a cash-free existence by 2016.

But concerns around security will be the main obstacle, and Brill says that in his experience consumers tend to be polarised into those who think NFC technology is a great idea and those who are suspicious about it.

But with predictions that up to 50% of smartphones could be NFC-enabled in the next three years, it may be the case that carrying cash could soon become passé.

The pilot is set to be rolled out to Telefonica employees worldwide and, if successful, could be a precursor to commercial services rolling out from next year, according to the network giant.

The news comes as Barclaycard and Visa Europe announced that the O2 arena in London will be rolling out more than 250 contactless card readers across the venue to allow users with contactless cards or NFC enabled phones to pay more quickly and easily.

Barclaycard and Orange in May announced their SIM-based Quick Tap payment service for NFC enabled mobile phones, starting with the Samsung Tocco Lite.

Customers also need an Orange credit card, Barclaycard or Barclays debit card to transfer money onto the Quick Tap app.

Barclaycard is touting the system as highly secure, highlighting the fact that users can opt to input a PIN every time they make a payment.

Using mobile phones to make payments is a natural extension of the smartphone, according to Pippa Dunn, vice president at Orange.

"We no longer use our mobile phones simply for talking and texting. Apps, cameras and music players allow us to use them for a lot more," she said.

"Orange Quick Tap is the first of its kind, a service that allows you to pay for everyday items just by tapping your phone wherever you see the contactless payment symbol. It's going to start a revolution in the way we pay for things on the high street."

Carolina Milanesi, research vice president at Gartner, told V3.co.uk that this will be the first of many services as near-field communication (NFC) technology becomes a common feature on Android, BlackBerry and possibly Apple devices.

"[However], a little more work needs to be done on the service side as there are different kinds NFC approaches being used by the providers," she said.

There are currently 12.9 million contactless cardholders in the UK, and Barclaycard expects the new service to drive adoption.

O2 is gearing up to introduce NFC services during 2011, including a wallet application and direct-to-bill and peer-to-peer payment facilities.

Analyst firm Juniper Research predicted that NFC will be built into one in five smartphones by 2014 as mobile payment and interactive promotions take off.

Over 23 million NFC-capable smartphones are expected to be in circulation by the end of 2011, according to Juniper.

"We see ourselves being an aggregator of services and payments. As a mobile business we are uniquely positioned. Telefónica across the world has 190 million customers, and we know everyone's payment history and credit references."

Location-based advertising, which O2 has already started using in the UK, is also being tipped to become a "major product line" with the increasing use of smartphones, Key explained.

"Customers can opt to receive a voucher on their mobile phone. We know when a customer is wandering past Starbucks [for example], and can send a barcode asking them if they want to go inside and get 50p off a latte," he said.

"Location-based is customer specific and is win-win. The retailer benefits, the customer benefits and [O2] sits in the middle and benefits as well."

The technology is predicted to generate high revenues, explained Howard Wilcox​, senior analyst at Juniper Research.

"NFC-based services in North America will account for nearly $47bn, or 41 per cent of the total, by 2016. The Far East and China ($31bn or 27 per cent) and Western Europe ($23bn or 20 per cent) will follow," he said.

However, Wilcox warned that there are still significant infrastructure challenges, and institutions including banks and merchants will need to have sufficient point-of-sale readers installed.

The Google Nexus S was the first smartphone to ship with NFC technology, but the hardware has seen limited use in the UK so far.

Google is to start trialling NFC services in US this summer, and O2 is expected to roll out a mobile wallet application in the UK this year.

RIM has also backed the technology, and its forthcoming high-end devices, including the BlackBerry Bold Touch, are expected to ship with NFC.

HTC, meanwhile, has taken a more cautious approach, stating that it will incorporate the technology once there is established demand.

The iPhone 5 was tipped to feature contactless payment, but the latest reports suggest that Apple will omit NFC from its fifth-generation iPhone.

Levelup is a mobile payments system at its core. It currently has 100,000 users across four cities (Boston, New York, Philadelphia and San Francisco) with 600 merchants signed up.

The basic payment structure is that LevelUp provides the merchants with an Android smartphone with a QR code reader and consumers with the LevelUp app that has a personalized QR code that effectively acts as the interface to their wallet

Users tie their debit/credit cards to the QR code in LevelUp's app. The security behind that is what could be considered a triple-blind token system. No actual payment information is being stored on the device (unlike the Google Wallet, for instance) and there are three steps from the phone to the bank to obfuscate where the payment is actually coming from.

Then there are the deals and game mechanics. When merchants sign up, they are prompted to give buyers a credit.

The more times that people pay with LevelUp, the more opportunities for credit to be accumulated (hence, the notion of leveling up to a new offer).

About 45% of users return to pay full price at the merchant and users on average use LevelUp about twice per week. The location system comes in by seeing on a map in the app what merchants close to you are using the service and what kind of deals they have.

"With LevelUp being transactional, we wanted to make it as fundamentally simple as humanely possible," Priebatsch said. "Frankly you should never have to do anything other than just pay with it and good things should happen to you and that should make you want to keep using it."

LevelUp has a certain type of groundswell that other local mobile payments options do not. In that way, LevelUp's closest kindred spirit is more likely to be Dwolla than it is something like Square or Google Wallet

There has been talk of SCVNGR being acquired but it is more likely that the company will eventually make partnerships with other ground-swell mobile payments companies like Dwolla.

What LevelUp and Dwolla have done is created a local ecosystem of merchants willing to use mobile payments in their communities. This is the bottom-up approach and, as of yet, is proving to be as effective than the top-down approach taken by companies like Google and PayPal.

What are the pain points for mobile payments? For the consumer, it is having the app and the ability to tie it to a payments process. LevelUp cuts down on the pain points by having the ability to tie the wallet to a debit/credit card through its triple-blind token system and using QR codes.

According to Priebatsch, QR codes are not necessary to the process. Any interface (like NFC) will do but the QR code is working for now and LevelUp can work with any device that can project a black and white image

This is where Priebatsch starts to get deep into the nature of payments and the notion that money is nothing but a form of information that transfers from one point to another. Priebatsch's grand plan, that translates well to a five to 10 years down the road for the company, is to bring the payments process down to "interchange zero" where the cost of moving that information from Point A to Point B is next to nothing.

Here is the philosophy, according to Priebatsch:

People will eventually make the flow of money more and more efficient, and the cost of transferring information, or money as information, will eventually converge to zero. This concept is something that we describe as "interchange zero". And as money flows frictionless-ly, all sorts of great things happen around that. You get to pay less at the store because the business does not have to pay interchange on top of their prices.

The really fascinating thing with that, is that a new monetization model needs to be found for the payments industry because somebody needs to make the $50 billion dollars a year to actually support the whole thing. And I believe, and I have a game mechanics background, that the way that that money is going to be replaced, as the idea of me paying you to just move money back and forth goes away, the way that people are going to make money on payments is taking the information inherent in payments and applying a series of game mechanics.

To create a series of actions which get consumers to spend more and come back more often. And this help the business make more money off of each transaction. So the payment, as a utility, will be frictionless, and the money will flow to the company, enterprise, person, organization who can add the most value to the transaction."

The most interesting aspect of this project is the collaboration between three different groups to create a single brand experience centered on creativity and engagement. Two of the musicians involved, Plan B and Tinie Tempah, will promote the campaign with their massive social media following, with the hope that their ‘cool’ will spread to the client and that all involved will be seen as innovators.

"Think of what you carry around in your wallet today - credit and debit cards, loyalty cards, building access cards - and imagine most of that functionality on your smartphone."

"What we're testing here is the viability of a true, mobile wallet that will eventually allow people to replace multiple pieces of plastic with functionality embedded inside their phone. It's going to make smartphones even smarter," said Paul Tait, BNZ's Head of Channels Innovation.

The payment card's data is stored on a secure chip embedded into the SIM card inside an NFC enabled phone, which means triallists can replace their regular plastic payment card with their phone.

"This just the beginning of what we can bring to Vodafone customers," said Zac Summers, Vodafone's Chief Strategy Officer.

Triallists can use an app on their smartphone to view their transactions, which are updated in real time.

However, he noted that Taiwan's market environment is not yet mature enough to sell NFC-enabled smartphones because the rules for payment are yet to be established.

"The five major operators in Taiwan are just beginning to talk about related issues, including how to build a cash flow platform and what kind of services to launch," he said. "There are still some uncertainties that will remain until next year."

Acer plans to sell 4,000 to 5,000 of the Allegro phones in Taiwan during the next two months, as the Lunar New Year is approaching and is expected to boost electronics sales, said Peter Shieh, vice president of the corporate account business division for Acer's Taiwan operations

The GSMA has published interoperability standards for SIM-based NFC application programming interfaces (APIs) and protocols based on the Pay-Buy-Mobile specification for secure NFC mobile payments. Such standards pave the way for the development of contactless services across a variety of devices irrespective of their operating system (OS) while providing more detailed implementation protocols for the Java and Android platforms.

IHS Screen Digest research indicates that the 45 operators involved in the announcement serve 50.7 per cent of the world's mobile subscriptions. Since the NFC module is embedded in the SIM card, the operators expect users to be able to use existing handsets for contactless services without the need to switch to a high-end smartphone. Users of smartphones currently lacking NFC capabilities will also benefit from this technology.

The 45 operators involved account for nearly 3 billion subscriptions worldwide, and include China Mobile, Vodafone Group, América Móvil, Telefónica Group, China Unicom, Axiata, Bharti Airtel, Deutsche Telekom, Verizon Wireless, and AT&T.

There is also the issue of cost. IHS Screen Digest estimates current SIM-based NFC modules to be a hundred times more expensive than traditional SIM cards. This would deter most operators from venturing into offering SIM-based NFC as an option to customers in emerging economies until economies of scale bring the associated costs down.

It is unlikely that operators will allow third-party "over-the-top" services outside of their value chain. As the implementation of some contactless services (e.g. mobile payments, public transit) depends on a close collaboration between operators and local third-parties, it is expectable that contactless services deployments and uptake will vary greatly across markets.

IHS Screen Digest does not foresee rapid adoption of SIM-based NFC mobile payments. Users will likely become acquainted with the contactless technology by way of other use-cases, as NFC experiences in Asia and Europe suggest--most notably the Octopus transit and stored-value card in Hong Kong, and the London Oyster transit card.

If NFC payment and transit cards schemes prove successful in more locations, the likelihood that such services will be increasingly incorporated into mobile devices will also increase.

Shoppers can also use the mobile app to view the weekly ad and sales, shop directly from their phone, browse products, check availability, scan barcodes, manage prescriptions and receive text alerts about Walgreens’ offers and exclusive deals.

Walgreens says the coupons will be available through December 24th, but details regarding its post-holiday mobile couponing plans are not yet available.

The Deerfield, Ill.-based company has 7,786 locations across all 50 U.S. states, the District of Columbia and Puerto Rico, making this initiative one of the largest retail mobile couponing programs in the country.

The Walgreens mobile app is available for iPhone, Android and BlackBerry.

The screen behind the steering wheel displays your speed and estimated range, and a sort of activity level on the right hand side. It's this widget that has captivated me.

It's designed to give you real-time feedback on your driving style.

When the car is happy (i.e. being driven efficiently), the ball is green and in the center of the gauge.

Stomp on the accelerator, and it rises to the top, changing color to yellow.

Brake too hard (so you're bypassing the kinetic energy recovery) and it dives to the bottom, again changing color to yellow.

The more time you spend in yellow, the fewer miles you'll go before you have to start burning hydrocarbons. 

GM claims you can drive about 35 miles on a full charge, but this is highly dependent on the driver. Depleting the battery won't leave you stuck at the side of the road the way it would in a Tesla or Nissan Leaf—but if you wanted to burn gas, why did you buy a Volt in the first place?

Very quickly I found I'd adapted my driving style. Instead of hustling it around as I would another car, I became more relaxed at the wheel, doing my best to keep the ball green and in the middle.

If anything, the experience was almost like an playing an early video game, except that I was on the streets of Detroit rather than in front of an Atari console. 

And I enjoyed it! It's a really elegant idea from GM, one that very rapidly induced a behavior change from me.

Which is quite impressive, as doctors and public health experts from around the world will tell you, modifying peoples' behavior is a lot easier to say than do.

(Others have reported similar experiences with less game-oriented gauges like the Prius' MPG readout.)