As I was waiting for my flight to board read an article that contained the response from Square. Further down was another little nugget. The PCI compliance folks have 'de-certified' the Verifone phone app and reader PayWare along with the few others that they had previously certified. PCI apparently concluded that with the large number of phones, apps, and operating systems that there needs to be standards in place that are consistent. So while Verifone has a reader that encrypts into their app no one is now recognized by PCI as certified. Gotta love marketing and perhaps forgetting to look in the mirror on something coming up to bite you.....
http://www.americanbanker.com/issues/176_48/square-verifone-rift-1034264-1.html
"In January, the PCI Security Standards Council announced that in most cases it would not certify new mobile payments applications under its requirements "until it has completed a comprehensive examination of the mobile communications device and mobile payment application landscape," the organization said in a statement.
Bob Russo, the council's general manager, said in an e-mail provided by a spokesman that the "rapid development and deployment" of "new and innovative mobile payment technologies has brought a level of complexity to the industry never seen before and has introduced a new set of risks and threats that may affect the security of cardholder data."
As part of its decision, the council also delisted the handful of applications it certified, including VeriFone's PAYware Mobile application, which competes against Square's device."
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