Thursday, October 9, 2014

Apple Pay Stored Value Card and US Treasury Stored Value Card Systems

My recent posts on examined Apple Pay as a possible point of entry to a new monetary system.  The potential "foot in the door" to a new monetary system is the ability Of Apple Pay to scale quickly and easily to debt free money transactions.

Our current monetary system is a debt based system.  All money, real currency or digital money in the banking system is debt based.  

Way back in these blog entries, years back now,  I examined the need for distinct "little money" and "Big Money" monetary systems modules in a serialized, digitized centralized sovereign debt free monetary system. 

"little" and "Big" ??  Little is day to day medium of exchange money.  Transactions less than a threshold value.  The threshold?  $10? $100? $1,000?  Its arbitrary.  Plug in any value and analyze results.

Maybe one qualifying distinction is a theoretical system of debt related big money and debt free little money.  Keep in mind that all money is now debt money, including our physical dollar bill paper currency.

This link outlines a component portion of  the Apple Pay patents.  The primary link to a payment system is the related credit card and all the big players in the credit card sector are on board. However, Apple Pay can link to "Stored Value" as per this summarized language in the patent:

"A section of the patent deals with payment networks and card issuing banks, which for Apple Pay includes a growing list of partners like Visa, MasterCard, American Express, Bank of America, Chase, Wells Fargo and more. For the user device, each subsystem is treated similarly and can be combined through appropriate services like Apple's Passbook app.

As for payment credentials, such as credit card or stored-value card information, the system meshes software and hardware encryption for secure input and storage. In some cases, a user connects to a service provider subsystem to provision new cards onto their device. A broker module on the user device side takes care of authentication with payment network subsystems and manages credentials, while a trusted service manager (TSM) handles secure interaction with POS terminals."



Stored Payment.  Also known as "Stored Value" Defined by Wikipedia at this link.


"A stored-value card is a payment card with a monetary value stored on the card itself, not in an external account maintained by a financial institution and differs from debit cards where money is on deposit with the issuer.[1] Another difference between stored-value cards and debit cards is that debit cards are usually issued in the name of individual account holders, while stored-value cards are usually anonymous.

Stored-value cards are most commonly used for low-value transactions, such as transit system farecards, telephone prepaid calling cards, cafeterias, or for micropayments in shops or vending machines. They also have an advantage over most other payment cards in that when making, say, a purchase telecommunication facilities are not needed, which may be important in situations where the availability or reliability of these facilities are uncertain or costly, especially for low-value transactions. A benefit to the merchant is that bank transaction fees are not incurred as the transaction is processed offline and there need not be a reference to the bank for processing. A limitation is that these cards cannot be used for online, telephone, mail order and other "card not present transactions"."

Stored Payment.  Looks like "little money" transactions.  I think that "little money" transactions are a matter of definition and can scale very well.  They can scale to the point where debt free money becomes debt based money.

Will Apple introduce "Apple Money" to the world in the form of Stored Value cards?


"The U.S. Department of the Treasury manages three stored-value card programs, EZpay, EagleCash, and Navy Cash........ (They are)... alternatives to cash in areas characterized by difficult access and limited banking or telecommunications infrastructure."


I have made previous blog entries regarding Navy Cash as a novel monetary system and perhaps a prototype for a new monetary system.  Note that the Navy Cash system is run by JPMorgan Chase
Transaction Services Unit P.O. Box 30210 Tampa, Florida 33630.  I see indications that the same system has potential, and I think probable, for untraceable covert payments in the intelligence community.

Apple Pay could easily link to these US Treasury stored value card programs. Is that the future plan?  If this is in the formal planning stage but behind the scenes, who is participating in the planning?

The US Treasury Stored Value Card program  is an excellent test bed for what??????  Where is this program going and might it go far and fast with Apple Pay?  The potential for scaling quickly is substantial.....in my opinion.

Today Carl Ichan said Apple shares should be at $203.

Maybe even more if Apple becomes a big player in a revolutionary monetary system structure.






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