As a means for facilitating online information sharing and collaboration, the second generation of Web development—or Web 2.0—is creating new and lasting opportunities in the payments market, as well as some competitive barriers.

In one twist on this trend, the technology facilitating Web 2.0 initiatives has enabled ISOs to create payment models in which consumers interact and share payment information directly with merchants. Merchant Warehouse, for example, recently launched MerchantWARE Mobile, a next-generation mobile application for BlackBerry smartphones. With the software in place, merchants can process payments via several BlackBerry mobile devices and e-mail receipts to customers. Credit card information, however, is stored on Merchant Warehouse’s servers, not the mobile devices.

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