As many long-time Apple iPhone users will attest, the phone’s glass front (and back on the 4/4s models) make a case almost a requirement. Therefore, I’m always techcited to find a new case to try out with mine, especially when it claims to add new capabilities. I was fortunate enough to receive one such case, the Moneto, manufactured by DeviceFidelity and Spring Card Systems. Moneto constitutes the first NFC payment system for the Apple iPhone.
The slim two-piece plastic case contains a MicroSD card slot. In this slot, you’re asked to insert an accompanying NFC enabled MicroSD card. Next, you download the free Moneto app from the App Store and use it to create your account. Then, you’re ready to fund your new account via direct deposit, ACH transfer, or cash/credit/debit card-enabled third-party money transfer services (including PayPal or Western Union).
The Moneto case is sold in both a version for the iPhone 3G/3GS and one for the iPhone 4/4S. Either one costs $79.95 but includes a $10 pre-paid credit with your new account setup.
Is Moneto worth that cost though?
This is what you see upon unboxing your new Moneto case:
Moneto makes a good first impression. As can be seen in the photo, the packaging is first rate (with even the cardboard box shipped in a clear, hard plastic protective shell). The case itself (the iPhone 4/4S model) feels equivalent in quality to other name-brand iPhone cases on the market, such as the Incase Slider. Because the case requires direct communication with the Moneto app on the phone, it implements an internal dock connector. While this means the case can’t pass the (occupied) connector through the bottom of it, Moneto provides a USB to micro-USB cable to attach to a micro-USB port on the bottom of the case. This allows charging the phone and syncing with iTunes via USB without first removing the iPhone from the case.
Interestingly, Moneto provides a pre-paid MasterCard debit card, tied to the service. This is touted as a “bonus” item on the box, but serves a useful purpose if your funds are tied up in the MasterCard PayPass system powering Moneto and the establishment you’re at doesn’t accept electronic NFC payments. If you want to find out who accepts these payments in your area, MasterCard conveniently provides a website to give you that information.
Unfortunately, the one item in the box that didn’t bring much joy was the fold-out sheet of fine print, constituting the cardholder agreement. Along with the typical legal “boilerplate” I expected to find, I also saw a disturbing chart of fees. Most importantly, by activating Moneto, you’re agreeing to pay a $4.95 monthly fee. Beyond that, a $5 fee is accessed to request a paper statement and it’ll cost you $19.95 for a replacement MasterCard debit card if yours is lost or damaged (or $29.95 for “express service”). A $2 fee is charged if you move funds from the card to a bank account, and a $10 fee is charged for a cash withdrawal from a bank. Even an attempt to do a balance inquiry from an ATM machine costs $1, while an actual ATM cash withdrawal has a $2 surcharge.
Ultimately, I found myself uninterested in spending $59.40 per year just for the convenience of “one tap” electronic payments via my iPhone, not to mention the prospect of getting charged fees if I wanted to move any funds back out of the Moneto account. I could envision Moneto as a solution for parents wishing to loan money to children away in college, while not wanting to give them free reign to use their credit card. The device might also prove a justified monthly expense for iPhone users living in parts of the country where PayPass NFC payments are extremely common. My research shows that where I live, my best bets to accept these payments were McDonald’s restaurants, Home Depot, and a random scattering of gas stations. (Oddly enough, one surgical center near me supported PayPass as well.) Otherwise, chances are I’d be stuck using their included debit card — negating the purpose of the fancy iPhone case.
In conclusion, I found Moneto to be a well-designed product, hampered by lack of NFC payment adoption and card processing fees. The device is a good solution if you’re a niche user interested in getting in on NFC payment capabilities. Otherwise, you might be best served to wait and see how these payments are handled with the next generation of smartphones promising to build it in.
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