My Virtual Life

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Business Week is catching up with us.  Their cover story is about virtual worlds.  They delve into the cases of people earning real money from virtual commerce.  For example: a 35-year-old former factory worker in Norwich, England, who chose to stay home when he and his working wife had their third child.  He got on Second Life for fun and soon began creating animations for couples: when two avatars click on a little ball in which he embeds the automated animation program, they dance or cuddle together.  They take up to a month to create.  But they’re so popular, especially with women, that every day he sells more than 300 copies of them at $1 or less apiece. He hopes the $1,900 a week that he clears will help pay off his mortgage. “It’s a dream come true, really,” he says. “I still find it so hard to believe.”

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You say RFID, I say contactless

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[Dave Birch] The Wall Street Journal recently ran yet another contactless/privacy scare story, featuring some guy who was so paranoid about miscreants surreptitiously stealing money through his PayPass card that he smashed it up with a hammer.

The WSJ then went to MasterCard, who told them (accurately) that multiple layers of security are available to prevent MasterCard data from being stolen by electronic eavesdropping. They quote Art Kranzley, EVP of New Payment Technologies: “It is up to the companies that issue the card to decide which security measures to adopt… Customers who don’t want RFID in their PayPass payment cards can ask to be issued an old-fashioned chipless card”.

Despite the fact that this is a payment product with lots of security, that customers don’t have to have it and that Chase (with 7 million cards issued) say they haven’t seen any fraud, the WSJ — apparently oblivious to the fact that the ISO 14443 13.56MHz short-range PayPass interface is not the same as the EPC Class 1 915MHz long-range interface used to read retail tags, that retail tags are meant to be “open” so that anyone can read the electronic barcode, that retail tags don’t contain microprocessors and that there is no cryptography in retail tags — uncritically quotes a variety of anti-RFID sources, including the Campaign Against Supermarket Privacy Invasion and Numbering (CASPIAN),

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The place to discuss digital identity

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Welcome
to the brand new online incarnation of the Digital Identity Forum. Now in
its 7th year, the Digital Identity Forum has a reputation for fresh,
exciting debate about digital identity issues of all types, free of the sales
presentations and scripted nonsense of commercial conferences and
exhibitions. Where better to continue that debate than in the
blogosphere? Check back often for stimulating views and discussion
about digital identity.

End the cash menace now!

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[Dave Birch] Surely, the e-payments industry should adopt the same approach as other more mature industries, such as Hollywood: don’t innovate, legislate! But how to ban the competition? We need to get the tabloids on our side. The hopeless heisters have given me an idea. If we remind the general public that cash is the reason for most armed robberies, that most drug deals take place in cash, that cash can carry Bird flu and that terrorists can use cash to avoid being traced, then they would be agitating for it to be banned! Let’s start a campaign in the Daily Express and the News of the World: End the cash menace now!

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The whole real/virtual thing is a bit fuzzy

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[Dave Birch] The whole world of really virtual money continues to fascinate. One thing fascinates me in particular: the relationship between virtual currency, free trade and prosperity. To be more specific: in some low labour-cost countries, such as China, people are paid to play games such as World of Warcraft and engage in the mundane and repetitive tasks, such as mining virtual gold in a virtual gold mine. They then exchange this virtual gold for real money (the traders sell the virtual gold on to people like me who are richer but time poor and can’t be bothered to play the game in this way).

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Gone West

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At the end of January, Western Union closed down their telegraph business. But its most important value-added network service, money transfers, continues. Over the course of the technology lifecycle, it earned far more more than the basic service ever did. Shouldn’t mobile operators spend their time trying to make money transfer work rather than messing around with music downloads?

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Prepaid and contactless

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MasterCard made a couple of interesting presentations to the Smart Card Club in London yesterday.   Bruno Carpreau was explaining the OneSmart MasterCard Paypass product.  This combines EMV with a contactless interface: the cards will work at any PayPass terminal in the US (operating in magnetic stripe mode) as well as any EMV terminal elsewhere (they also have magnetic stripes on for backward compatibility).  Chris Reddish was explaining the range of MasterCard prepaid products and was generally very positive about the European prepaid market, predicting it to be around 80-85 billion euros in 2008.   I gave a bullish talk on the combination of contactless and prepaid at the same event.

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