The 10 oldest Internet domains

Since the Internet arrived in Brazil on 1995 at that time with dial-up connections, and nowadays with the broadband and the mobile 3G connections, Brazilians have been using a lot the services and also changed its behaviors due to the World Wide Web (aka www).

But do you know which are the oldest Internet domains?

1. symbolics.com - on March 15th, 1985 the computer manufacturer Symbolics Inc. registered the first domain ".com" on the internet. The company already doesn't exist anymore, but the page is still up and celebrating. The website brings several mentions about the 25 years of the first domain .com on the Internet. on 1997, the symbolics.com recorded impressive (for the time) 1 million hits.

2. bbn.com - this domain has been registered on April 24th, 1985 and belongs to a technology company from the United States.

3. think.com - the domain dates back on May 24th, 1985 but the website is not up anymore. Actually when you try to access, you will be redirected automatically to the website ThinkQuest, from Oracle.

4. mmc.com - this domain has been registered on July 11th, 1985. Today gathers information from universities that have initials with these acronyms.

5. dec.com - it has been registered on September 30th, 1985 and today belongs to the group Hewlett-Packard, the HP.

6. northrop.com - the domain has been registered on November 7th, 1985. The website was bought by the global security company Northrop Grumman.

7. xerox.com - among the largest technology companies, the Xerox was the fastest on registering the domain on January 9th, 1986.

8. sri.com - this research institute nonprofit existed for over 60 years but only registered their domain on January 17, 1986.

9. hp.com - although it has acquired the domain dec.com shortly after its registration, HP decided to register its own address on March 3, 1986 to avoid problems in the future.

10. bellcore.com - registered on March 5th, 1986, now belongs to the technology company Telcordia Mobile Broadband.

Life Without Paper *

Since paper was first invented by the Egyptians, called papyrus, and later reinvented as the paper we use today by the Chinese, we have been consuming more and more paper every day.

Do you know how many trees are required to produce paper? It’s hard to believe, but twelve trees are needed to produce one ton of paper, and that doesn’t include the many necessary chemicals. Additionally, only 37 percent of the paper produced is recycled.

Trees are not the only precious resource being used to produce paper — 540,000 liters of water, on average, are needed for the production of one ton of paper. There is also the fuel consumption in transporting the trees and paper.

According to experts, 44 kilos of paper are consumed annually by every Brazilian, nearly one tree per inhabitant. In the United States, per capita consumption is 200 kilos of paper per year.

In your office or at home, you’ve already had the experience of wasting time looking for a piece of paper, like a receipt or invoice lost in the midst of many other papers. Perhaps you wished you had a search engine for your documents like you do on your computer when looking for a file or folder.

When computers first entered our lives more than 20 years ago, the idea of having electronic communication was born. Soon the Internet and email brought electronic communication into reality; however, after 20 years, we are far from eliminating the need for paper.

The arguments for getting rid of paper are even stronger today than in the past. By eliminating paper in cabinets, a company can create more space and reduce storage costs outside the workplace. Through the exchange of electronic information with suppliers and customers, a business can make information quickly accessible anywhere, ensuring privacy and security with the use of encryption, passwords and other security measures.

On the other hand, when trying to cut down on paper consumption, companies must consider the cost of computer equipment and software programs, as well what to do with the paper already in the office. Trying to eliminate paper in an office is not easy, as there are decisions on how and when to convert to electronic documents; what kind of paper or document to be considered; what to do with the documents still coming from suppliers and customers; providing training to the employees involved in adapting to a new system; and the most important, maintaining a normal work flow during this transition.

An additional hurdle faced by companies wishing to eliminate paper is the fact that no matter what they do, a person or company never can be completely paperless, at least not yet. Some documents, such as signed and sealed legal contracts, or paper records for audits for income taxes must remain in their original form for legal reasons, particularly those involving financial services to ensure regulatory compliance.

There is still no precise study on the statistics of paper consumption in the business world in Brazil. However, experts point out that in today’s digital world, a great deal of paper is being wasted from the lack of experience dealing with new technology. For example, 45 percent of office documents that are scanned end up being printed anyway. Part of the problem is many people still feel more comfortable having a document on physical media; they suffer from the syndrome whereby they need to touch it to believe it’s real. Because of fire, deterioration, water damage or loss, paper files also disappear, so paper documents are hardly one hundred percent safe either.

Our government agencies are at the forefront in the process of this revolution to move away from paper, as they are enormous consumers of paper and can also set standards for companies and consumers. The abandonment of the physical forms of Income Tax statements and returns; initiatives for electronic invoices; and digitizing legal proceedings in the new electronic environment are obvious examples of our government today moving away from paper.

To continue our efforts to use less paper, it is time for everyone - companies and individuals and the government - to invest in more computer equipment and software programs, employee training, and awareness campaigns. For example, you can start reducing the paper you use at home by asking your bank account manager to stop sending your account balance in hard copy every month to your home. Many banks already offer this solution, and instead you will receive a protected email with your current account statement or even your credit card invoice.

Another step for individuals is to stop using an appointment book to schedule events. Instead, try using a calendar on your computer or mobile phone. Even simple cellphones (aka dumb cellphones) have this feature, and as a bonus you can set reminders for appointments with an alarm so you won’t forget. With smartphones you can go even further: your personal appointment calendar can be synchronized with the Internet. Additionally, there are many applications available that can take a picture of a document and transform it into a scanned document and generate an image in pdf format ready to be sent by email, or to be stored on your computer or on the cloud, making it much easier to retrieve

As a last resort, if you really need to use paper, try to make notepads with scratch paper that can be reused. And when printing is absolutely necessary, use both sides of the sheet. There is no question that with a simple change of attitude and a few easy adjustments, many trees will be preserved.

* Article published on Curitiba in English.

Put Your Computer In A Cloud *

Brazil now has almost 80 million Internet users, an explosion of growth thanks to many factors including tax incentives given by the government to purchase computers, as well as the rise of other gadgets such as smartphones and tablets. Thus, there is a constant exchange of information through many different sources, which often leaves users in the position of having many files to store. The files might be text documents, spreadsheets, presentations, pdf documents, music, etc. It doesn’t take long before the size of the information being stored exceeds the capacity of the smartphone or tablet. Therefore, the latest questions we are hearing from technology users are, Where is the most suitable place to store all my files? Also, what is the a simplest way to share my files with friends and colleagues? Do I need to worry about backups for all my files? If I lose a file, can I get it back?

If we look back on the 1990’s, computers had very limited space for storage because the technology was still young and also storage space was an expensive part of the computer. The storage space on a computer, known as the hard disk or hard drive, is a fixed part of the computer and not easy to detach because the operating system is installed on it. As a solution, in the 2000s, computer companies created portable storage devices such as the pen drive, also known as a USB flash drive or thumb drive. A pen drive is a storage memory device about the size of a cigarette lighter and thus easy to carry around. It soon became the preferred device for carrying personal files and backing up.

However, pen drives were limited to a single copy of the files and were smaller in storage size than a typical computer’s hard drive. Also, they were only available when you had one with you. However, recently a new Internet service has arrived to take the place of pen drives. This service is called the “cloud” and offers faster and greater access. It is a new way to store personal files. The concept is to store your files on the Internet with a synchronized copy on your computer (desktop or laptop, PC or Mac), on smartphones and on tablets. Even if those devices are not available to you at the moment, with a simple Internet connection you are able to access any of your stored files from anywhere.

In essence, we are talking about an Internet-based service that is emerging and could become your new hard disk. It is quickly becoming popular because of the proliferation of mobile devices and the need to have larger personal files available anywhere, anytime.

Regarding the different types of Internet storage cloud services already available, the most popular are the DropBox from DropBox; the iCloud from Apple; SkyDrive from Microsoft; and most recently the Drive from Google. Of course there are many others with different services, however, those mentioned are the most popular because of their features, ease of use, and openness to many platforms.

Cloud services such as these include some very interesting features, such as “free” backups. Once you place a master copy of your file on the cloud, several others copies can be distributed to multiple locations. If you lose your computer or portable device, or it breaks, once it’s fixed or you get a new one, the cloud synchronization service will do the rest for you. Another interesting feature offered by Internet cloud service is you can share files with anyone simply by granting them permission to a specific file or folder. Then an email with the link will be sent to the other user for access. Also, depending on the cloud service provider, you can share and also edit a file online in collaboration with other users without the need to download, edit, and then upload the file again.

You might be thinking that there is not enough space for all the files on your hard disk to be placed on a cloud service provider. It’s true, depending on the provider, the default size of storage might not be adequate. Cloud services start with 2 GB (gigabyte) of storage and go up to 25GB for free. However, you can purchase more space, as much space as you need, with very reasonable prices compared to other storage devices. In this way you will have everything in a safe and protected place and never have to worry about your own storage devices breaking or getting lost. We have seen in the past decade great progress in increased storage capacity both inside and outside the computer, but once files are moving in larger quantities and more quickly to the Internet via online services, it will be obvious what a great leap forward we are making to alter the way we store information using cloud storage.

* Article published on Curitiba in English.

The Internet And Small Companies *

Certainly you have already had an experience like this: You are looking for a product, service or company you need, and the first place you look is the Internet. Using the Internet is convenient, plus there’s the possibility of finding detailed information such as comparing prices from different companies for the same product. However, as you begin your search on the Internet, you realize that only large and well-known companies are represented on the Internet. Small companies like the ones in your neighborhood don’t even have their phone number published, much less their products or services available through the Internet.

A recent study published in Brazil by the Internet Management Committee (CGI) called “Information Technology and Communication,” analyzed small businesses on the Internet. CGI focused their research on companies having at least 10 employees. The study examined the period from 2007 and 2010 and concluded that small businesses in Brazil still are not investing in the Internet as a way to promote their products or services. Their lack of reliance on the Internet is all the more surprising since during the past few years Internet connections have vastly improved in Brazil. We have migrated from the dial-up connection to ADSL, and even more important, businesses have been adopting local networks (also known as LAN) in order to connect more computers. Some companies and even home users now have gone beyond this and adopted wireless connections.

Nevertheless, with these vast improvements in Internet service thanks to new technology, the study shows that small businesses are not doing enough to take advantage of the power of the Internet as a way to boost revenue. More than 60 percent of these companies don’t even have a web page to present their products or services. More than 80 percent don’t have any type of simple customer service, such as an e-mail address where the customer can establish contact with the business.

Some small companies still maintain they don’t need the Internet to promote their business. They have Internet access inside the company only for their employees to use e-mail or search engines. Companies also complain they don’t have the expertise to employ this technology to expand their business, and they are also concerned about the security of information, theirs and their customers, such as with Internet identity theft.

If we look around, it is obvious that many traditional and small companies have found a way to move to the Internet. In some cases, the Internet has allowed small companies to grow into big companies and even trade shares on the stock exchange. New business lines were created specifically for the Internet, while the traditional ones had to adapt, and they are achieving great success.

So what prevents a small company from utilizing the tools of the Internet to expand its business? At the beginning, it seems to many of them like a waste of money with no return in the short-term. However, these companies are forgetting about consumers like you and me who today have high-speed Internet connections at home or in our offices, and we are likely to go to the Internet to look for something we need. When we are looking at our search results, don’t small companies want to be included?

This reluctance to change among small businesses is something we saw in Brazil some years ago — it looks like the paradigm for the adoption of credit cards as a way of payment. In the past, small businesses did not accept credit cards, but now all of them provide this service because they eventually realized how it would increase their business. As a result, today more than 80 percent of consumers’ purchases are paid for with credit cards.

In summary, the Internet is infinite so there is always adequate space for all kinds of products and services, big or small companies, suppliers and competitors. Moreover, there are several ways to develop a presence on the Internet, such as simple web pages, blogs, social networks, collective purchase websites, etc. The first step toward this new business model is not such a difficult challenge, so if you are a small business and considering it, a little research will reveal many ways to enter the Internet business arena. Sebrae, a public service organization that is well-known for offering assistance to small companies can definitely help you and guide your first steps. All of us consumers hope to see you here!

* Article published on Curitiba in English.

The 15 tech habits that everyone should avoid (part 2)

Getting back on the 15 tech habits we should avoid, let's get started by the 8th topic.
If you missed the part 1, here you can take a look.

8. Leave the laptop in the car: Thieves have plenty of time to study how to approach on you, or the simplest case when they see an easy opportunity right in front of them. If something attracts their attention in the car, or more, if they see you carrying a backpack or suitcase and moving to the trunk of the car, it will be easy to them to break the window, in seconds take your laptop and your information became legend. So if you really need to leave in the car, try to put under the seat, in discrete location, but better than this, take with you.

9. Not having a "disposable" e-mail: Dont give your main email to anyone or questionable websites when filling the form. You can easily start receiving tons of spam e-mails with this simple attitude!! So take advantage of the free emails such as Gmail or Yahoo and preserve your main inbox.

10. Keep all your e-mails: If you are the one who keeps all received email in the inbox in a chronological order ... congratulations!! But sorry to say that, it will be pretty hard to find something when you most need. Try to use folders and tags in order to classify by category such as work, personal, important ones, etc. Also delete the ones you wont use anymore.

11. Not learn the shot-cuts of the keyboard: Still there are many people that dont know how to use the Ctrl+C and Ctrl+V. Those are the most common ones, and there are lots of those that makes easier your life. No need to learn all combinations, but it can help you save a lot of time with a simple Ctrl+S, for example.

12. Install too many things: You install a few messenger, other tool bars, and some programs. When you initiate your computer and after everything is loaded, you notice your computer slow. This is because programs usually let many logs and other stuff behind, making your computer keep loaded all this things. So when you want to install new stuff, think twice if you really need it. Of course, there are some software that can clean up your computer, or another way is format and re-install everything ... but this takes lots of your time in order to do it and can give you possibly a cost.

13. Store files anywhere: This is one of the most common problems people complain when working with computer ... "I swear I have saved the file but I dont know where!!". I bet this already happened to you. So in order to avoid this kind of boredom, try to organize your files using folders splitting by subject or category. Once you need to look for it, you have an idea where it might be. Act as you do with other stuff such as, the newspaper and magazines, the monthly bills, the photo albums, etc.

14. Use the same password for everything: You first think that if you put the same password for everything you need, it is easier to remember, because it is just one. However, imagine if one of those places you created the password they don't store encrypted and worse, this information is stolen somehow. The thief can have your name and password and can access your e-mail, social networks, perhaps bank account, whatever. Better have a set of different passwords for different purposes and with critical levels, not only that, keep it safe, not have written anywhere or shared with other people.

15. Lock the cellphone: Not all cellphones have this feature to put a code/password to unlock. However, if your cellphone have, consider using this feature. This is because if you loose or leave anywhere nearby to bad intentioned people (why not say thief), he can easily steal some important information stored on your cellphone for many purposes, such as make calls, get your contacts for spam, perhaps your e-mails access and some others. If you have this feature, why not take advantage of this tiny thing that can protect you.

Well, surely there are many other important hints that can protect yourself of headaches. But following some of those ones, you can make your productivity even better, possibly not right away but in the long run.

Ultrabooks: Going Beyond Tablets *

Yes, here is one more new technology term! Ultrabooks are the newest evolution of laptops. They were created by Intel, and now big companies like Acer, LG, HP and Asus are investing in the concept. In order to qualify as an Ultrabook, the model must conform to the following: It must be less than 21 mm thick, and most important, it must cost less than US$1,000. (Unfortunately, we already know the price will be higher in Brazil due to the high import taxes here.) According to the manufacturers, it is essential for Ultrabooks to reach a mass audience, and they expect them to become a dominant product in 2013.

The first models released are equipped with Intel Sandy Bridge processors that measure only 32 nanometers. However, with the continued development of technology, it’s expected newer models will be equipped with processors of only 22 nanometers. A nanometer is the unit of measure for the transistor in the processor, and the smaller they get, the greater the possibility of putting more transistors on a single processor, as this increases the performance of the computer. Just to give you an idea of how small these processors are, the flu virus is 100 nanometers in size!

Here are a few more details related to this new concept: Ultrabooks are super thin, use lightweight batteries that last longer - at least five hours - and have a quick start-up, only about seven seconds. Also, the traditional laptop hard drives have been replaced by SSDs, also known as flash memories. Because of this, the Ultrabooks will be strong competitors for netbooks and tablets, since some of them come up with touch screens.

Now you are no doubt wondering: Which is more better to own - the Ultrabook or a tablet? In the previous technology article, we discussed tablets and their features and purpose. A tablet can be seen as a consumer of content - designed to be easy to use, very intuitive, and mobile anywhere, any time.

On the other hand, the Ultrabook is designed as a producer of content - much more powerful than tablets, with the same features as laptops. Additionally, Ultrabooks combine some of the best features of tablets, such as the ease of mobility due to their reduced size and weight.

It is interesting to note that Ultrabook technology isn’t really so new. Perhaps you’ve heard of the Apple MacbookAir, a laptop with the same features as Ultrabooks, released by Apple some years ago. The difference now is that Ultrabooks will be produced by several companies, allowing for the possibility of greater popularity and cheaper prices.

In a nutshell, you can begin thinking which kind of user you are - sometimes a consumer and other times a producer? The good news is you will now have the opportunity to buy the most suitable equipment for your needs, and thus you will take advantage of the best of what technology has to offer.

* Article published on Curitiba in English.

The 15 tech habits that everyone should avoid (part 1)

Everyone has flaws in the technology world - who never used the word "password" as password one day?!?
But now let's dig deeper to seek the really bad habits that can cause permanent damage to your computer, your pocket and your mood.

Lets talk about the the 15 worst habits in the world of technology, which should be avoided at all costs:

1. Not use security software: many people still dont have the habit to have any firewall or antivirus at least on the computer as a way to protect your computer from invasion or any trying of information theft. A simple click in one unknown (or known) email sender can put your computer in high risk such as have installed any spy or key logger  program to capture everything you do. Please, you have to have something to protect, there are many free or payed options for purpose.

2. Not have any backup of your computer: many people have "good" excuses why they still dont have backup. But any piece of your computer like hard disks eventually fail, and according to Murphy's Law, this will hapen when you most need, whatever it is, a worksheet, a document, or a college project.

3. Not have any off-site backup: Picture this, a thief breaks down your home and steals your laptop! ... you might be thinking, "no problem, I have a backup on my pen-drive or external hard disk". But to get worse, the thief takes all of these too. Well, this can happen, so try to store your data in multiple locations, why not on the internet (on the cloud), there are many websites with tons of gigabytes available for free. Try to make this a routine to update, otherwise if one day you need a file, you will not get surprised with very old version of those data.

4. Answer to a SPAM: Do you know why spammers still keep sending emails to your inbox? It is because there are enough users still answering those with a simple gesture of clicking on the link "remove your email", and thus confirming to the spammer that you exists with a valid email and it is a potential customer. Of course there are a few (very few) advertising emails that work seriously with this option.

5. Walk around with the laptop turned on: This no problem in moving the laptop from the kitchen to the living room meanwhile the laptop is turned on. The problem is whey you close the lid and put into the backpack at the office and go home for fifteen or thirty minutes by bus, subway or car. A hard disk in operation can be damaged even by a small impact (such as a bump on a bus), and computers can easily overheat if left indoors. Turn off your computer before transporting it.

6. Print out everything: You can have all your receipts and personal documents in digital copy with free programs such as PDF Creator and print everything in .pdf format. So that you can store on your computer for easy search, instead of printing out everything, and when you most need you cannot find anymore the only copy you had about the monthly rental fee.

7. Use the laptop on bed: You can use your laptop in bed whenever you want. The problem is when you leave it on standing on its beautiful goose down comforter. Quilts, blankets, pillows and cushions can block the vents of the computer, causing overheating and damage to components. Instead, use a notebook table or a coffee table to keep the machine in a comfortable position and ensure a good flow of air.

To not make this post so extensive, it will be divided in two parts in order to make it easier to read and better comprehension. So see you on part two.

Tablets: The Post-PC Device Or Just One More Fad? *

No doubt you have already heard about these new gadgets that have become so popular so quickly. You might be wondering, What do they do, and Should I buy one?

Tablets have many functions, such as “surfing” the Internet, checking e-mail, playing games, watching videos and movies, reading e-books (electronic books) and other activities you can already do on an ordinary computer. The difference with the tablet is that it is much lighter and thinner than an ordinary computer. It is even lighter than a notebook or netbook computer, allowing you to carry it easily anywhere, and without needing any Internet connection cables. Also, tablets have a long battery life.

Most tablet users report their greatest pleasure comes in the feature of the touch screen. For those of you who own smartphones, you will be familiar with how touch screens work. Companies like Apple were able to adapt the smartphone touch screen to produce small touch screen computers like the iPad. The general term for these touch screen computer devices is tablets.

Another interesting feature of tablets is their increased storage capacity compared to the older technology. On a tablet, imagine that you can have simultaneously more than 4,000 e-books stored, not to mention magazines and newspapers from all over the world. With a few touches, you can have thousands of other issues available, ready to be downloaded free or cheaply onto your tablet.

With the appearance and now widespread use of the tablet, many of our daily habits have changed, such as the reading of e-books and the way we navigate the Internet. Regarding this new technology, specialists are divided on predicting the future. Some technology experts believe the sales of tablets will continue growing until they completely replace PCs and notebooks. Other experts believe tablets will lose popularity over time, just as sales of netbooks are already beginning to decline.

Whatever the future of tablets, if you are thinking of purchasing one, you will need to have a clear idea what kind of services tablets offer, as well as what your tablet’s primary purpose will be for you. Do you want a tablet mostly to read e-books? Or is Internet capability through WiFi or 3G integration with e-mail your most important need?

With many tablet models available on the market, there should be one that fits your requirements. Here are some samples: Among the top-selling tablets, we have the Apple iPad and Amazon Kindle. The Apple focuses on multimedia, working as an entertainment center, but it also includes a feature to read e-books. The Amazon Kindle meanwhile is very focused on e-books through integration with the website Amazon.com as its main source of books. The Kindle features a specific technology called e-ink (electronic ink) that makes it easier to read the screen particularly in daylight environments. Of course, there are many other brands with different features, and many of them less expensive than the Apple or Kindle.

The reality is that with the creation of new technology, people are getting many more options and are being provided with the opportunity to be connected all the time. Consequently, we are all much closer to the information and entertainment worlds, whether by computers, smartphones, or now by tablets. Although tablets are a brand-new technology, we can already see what they have sparked. So don’t worry, one day soon you will probably consider owning one of these devices.

* Article published on Curitiba in English.

Five corporate social platforms to think beyond Facebook

When we talk about social networks, the first that comes to our mind is Facebook, right? Not a long time ago, for us Brazilians we were thinking about Orkut. This sounds like an era that often moves to another era and we change our opinion as a consequence. But do you think that social networks are only like that you already know as quoted above?

Well, if we look around we will find many others with different purposes, here are some of them:
This does not mean that you have to follow each of those, far less they are the most important ones to be part of. Also, the focus given to those ones are very differently from what you are used to navigate.

- Cisco Jabber
Aggregate the unified communications platform from Cisco, Jabber was designed to make employees more productive, regardless of location or device used. Result of an acquisition made by the manufacturer in 2008, the service allows users to access presence, instant messaging, voice, video, voice messaging, desktop sharing and conferencing capabilities.

- Socialcast
In May, VMware acquired Socialcast, a social networking platform that allows companies to integrate social tools and processes within enterprise applications. The free version offers features like activity stream, private message function, microblogging and profiles. The option premium brings analytics, directory integration and user tasks, among others.

- JiveSoftware
It is an extensive platform that allows third party developers to integrate social networking capabilities using an SDK based on OpenSocial.

- Chatter
The Salesforce.com supports from the beginning the question of social networking in the enterprise and supply Chatter was involved in a CRM application's own independent company for something that can be deployed even by non Salesforce customers. The free version allows users to create profiles, post updates, follow co-workers, group creation, file sharing and collaboration in a private and secure. Furthermore, access can be done anywhere from Chatter Chatter Mobile and Desktop. Since the Plus Edition provides all the capabilities of the free version as a more refined integration with CRM, and a more elaborate security and other controls.

- SAP StreamWork
The SAP StreamWork is a social networking tool based on the model software as a service (SaaS) designed for enterprise collaboration. The Enterprise Edition adds advanced security capabilities, automated provisioning and the ability to integrate legacy applications, including SAP and SharePoint, Microsoft.

Possibly you can never join to those social networks above, for some reasons like money to invest, companies not interested on this, or also not fun as we know.
At least, now you have an slight idea that social networks go beyond the popular ones.

Mobile Payments Show Dramatic Increase *

A new way to pay our bills is about to start — the mobile payment. The “m-payment” is already present in Brazil. It involves paying your bills through authentication via cell phone, similar to a credit card when we type the password in order to confirm the transaction. There are currently several methods being implemented around the world and some have been working for years, such as Premium SMS based, Mobile web payments, and Contactless NFC (Near Field Communication).

The methods being developed in Brazil are the Premium SMS based and the NFC. The first method involves the customer sending a payment request via SMS text message to short codes (special telephone numbers). Once the transaction is approved, the merchant is informed about the payment success and the transaction is concluded. The second method is used mostly for purchases made in actual stores (as opposed to Internet purchases) because it requires a special mobile phone equipped with a smart-card. The card concludes the transaction with a reader module, requiring authentication. One of the main reasons for using these two new technologies is to integrate and adapt credit card, debit card, transportation, and meal voucher payments to a mobile phone.

Although the Brazilian financial system is solid, modern and well-distributed, 49 percent of the population is still deprived of banking services, which means there is a great demand for mobile financial products by millions of people. A contributing factor is the huge presence of cell phones in Brazil – about 106.9 percent. This means there are currently more cell phones than people in Brazil! Thus, the stage is set for mass adoption of services offered by mobile devices.

Brazil is poised with the necessary banking knowledge that is essential to the success of mobile payments. However, some obstacles still need to be overcome. For example, the lack of coordination among the various companies that offer this service — telecom operators, banks, and large retail chains need to understand and respect the needs and operations of each other. They all must learn to work together. Also, since mobile payments are new, there is a large legal gap resulting from the absence of regulation. There is a lack of clarity in the banking laws, which do not define the legal parameters of non-financial institutions, such as a wireless carriers offering payment services in Brazil.

Judging from this scenario, experts agree that it is unlikely the Brazilian market will have a single universal system for payments via mobile devices in the near future. However, if we look back just a few years, how long did it once take for a merchant having one card terminal to process all the different “plastic” options? Payment services have improved dramatically in a short period of time. Nevertheless, the future expectation for mobile payments is enormous. There are currently 1.6 million mobile transactions performed annually, but this number is expected to reach almost 12 million by 2014.

* Article published on Curitiba in English.