Mobile Payment Solutions Not in Time For the Holidays
Posted by Matt Krautstrunk on December 7, 2010 in Business News [ 8 Comments ]
If you think writing a check is an outdated form of payment, you may be surprised at how fast the mobile industry is fossilizing the need to even carry a wallet. According to an eMarketer projection, mobile payment transactions will gross $633.4 billion in 2014.
Mobile payment methods first started popping up in conversation early March; and even though these POS systems have been rapidly adopted by much Europe and Asia, we have yet to see them. Monday, Google announced that Android’s operating system update includes mobile payment support. It will include a technology called “near field communication,”(NFC) which allows your cell phone to broadcast credit card data to NFC speaking machines. This update is directly in line with retailers push to make purchasing quicker, more efficient, and ultimately, give the consumer less time to think, “Do I really need that?”
The mobile retail industry is taking off faster than ever. Verizon, AT&T and T-Mobile recently announced that they were joining together to form Isis, a NFC retail solution. Isis will use near field communication and will likely be the industry standard for mobile payments. Michael Abbott, Chief Executive Officer of Isis says, “While mobile payments will be at the core of our offering, it is only the start. We plan to create a mobile wallet that ultimately eliminates the need for consumers to carry cash, credit and debit cards, reward cards, coupons, tickets and transit passes.” This merger will bring retailers a solution for their current credit card processing systems. The process of paying on your phone is similar to a Speedpass and will improve the speed and convenience of purchases. Even though this holiday season may not see extraordinary mobile payment volume, the “wallet-less” future is definitely coming.
This Holiday Season
Retailers are still capitalizing on mobile technology offerings assisting in the purchasing process. Mobile coupons and Internet price matching with barcode scanning help shoppers find the best deals. Coremetrics reported that consumers embraced mobile shopping with a fervor not seen in previous years. “On Black Friday, 5.6 % of people logged onto a retailer’s site using a mobile device, a jump of 26.7% compared to the prior Friday.”
This holiday season is already seeing a boom in consumer purchases. Retailers must make sure their website is optimized for mobile viewing because mobile promotions and coupons can drive retail drive sales. eMarketer reports that, “Scanbuy, a provider of mobile barcode solutions, saw a 30% year-over-year jump in barcode scans over the Thanksgiving holiday weekend. Black Friday scanning activity alone was 20 times the daily average.” For now, mobile retail technology is cool but it is moving towards revolutionary.
Image Credit: Telcom Circle