At 10:27 AM -0400 9/20/99, Robert Hettinga wrote:
>I remember Ian, Adam, <someone else> and I talking about the
>card-in-a-floppy thing at CFP '96.
>
>Soulda, woulda, coulda, and all that...
>
>Cheers,
>RAH
>
>--- begin forwarded text
>
>
>From: [EMAIL PROTECTED]
>Date: Mon, 20 Sep 1999 08:50:44 -0500
>To: [EMAIL PROTECTED]
>Subject: IP: Smart Cards with Chips encouraged
>Cc: [EMAIL PROTECTED]
>Sender: [EMAIL PROTECTED]
>Reply-To: [EMAIL PROTECTED]
>
>Source: New York Times
>http://www.nytimes.com/library/tech/99/09/cyber/commerce/20commerce.html
>
>September 20, 1999
>
>By BOB TEDESCHI
>
>New Hardware Could Help Web Merchants Cut Fraud
>
...
>The recent launch of the American Express blue card, which comes with an
>embedded computer chip, is an example of both efforts. Since the card's
>chip can access a user's personal information, it will eliminate the hassle
>of typing in that data in every Web purchase -- and, American Express
>hopes, encourage people to use its card. At the same time, the chip limits
>the fraud by guaranteeing the shopper's identity and offering greater
>protection to the buyer's information during the transaction.
>
>The key to these features is a piece of computer hardware that, until now,
>has been foreign to the desktop: a credit card reading device. Starting in
>November, blue card owners will be able to obtain such a device, which they
>will be able to plug into their PC's, enabling them to swipe the card at
>home much like a sales clerk would at a retail store.
I predict the floppy smart card reader will be a dumb flop. Here's why:
1. There are too many steps to use it: Take out your credit card. Put
it in the floppy gadget. Put gadget in the A: drive. Make
transaction. Eject floppy gadget. Remove credit card. Return credit
card to wallet. Put gadget away. Consumers hate complexity.
By contrast the last book I purchased from Amazon (3rd Harry Potter
from their UK site) took exactly 3 clicks. And I did it from the
floor of MacWorld.
2. The floppy adaptor is not attached to anything, so it is easy to
lose on a cluttered computer desk and it is too easy to leave your
credit card in the adaptor (my floppy drive resides in a mini-tower
under my desk.).
3. Floppies are on their way out. Apple no longer ships them in any
of their computers. Palm Pilots and CE machines don't have them.
Other PC manufacturers are under severe cost pressure and will see
the light soon. Being able to save a 1.4 MB file is not worth much
these days.
And what is the value proposition for the consumer? SSL works swell.
Arnold Reinhold
