Mobile commerce gaining ground, putting traditional financial firms on alert
Traditional finance institutions, such as credit companies and banks, are beginning to feel the pressure of a new form of commerce that is gaining momentum around the world. Mobile commerce is quickly becoming a powerful force in the financial industry. This form of commerce is supported heavily by aggressive investments from some of the world’s largest technology companies and their continuous development of NFC technology. These companies have been highlighted by Javelin Strategy & Research, a market research firm, in a new survey.
Survey shows that Facebook, Apple, Google and Amazon are major contenders in the industry
The survey indicates Google, Apple, Amazon, and Facebook as the “Gang of Four.” This supposed gang is responsible for the recent major innovations in NFC technology and mobile commerce. These companies have been responsible for some of the rapid progress seen in the mobile commerce industry. Javelin expects that these companies will compete with each other in order to win dominance over a particular market – one comprised of mobile-social platforms. In this instance, Facebook appears to have a significant head start because of its various games and services that support payments.
Security challenges could halt the progress of mobile commerce
There are significant challenges keeping these companies from competing effectively, however. Launching mobile payment systems is considered a difficult and risky endeavor. It has been nearly a year since Google launched its Google Wallet application, but consumers have largely regarded it with disinterest because of security concerns. Security is often highlighted as the major barrier keeping mobile commerce away from mass adoption.
Companies may be forced to comply with federal regulations
As concerns for security are raised, the possibility of these companies having to fall under strict guidelines from the world’s governments. Facebook has claimed that it is not a financial institution and has no plans of being such, unlike Google and Amazon, thus is not susceptible to these regulations. The company may have trouble forming partnerships with actual financial institutions if it cannot adequately protect the financial information of those using its mobile-social payment platforms. These partnerships are vital in order to compete with companies like Apple and Google, as well as the already popular ISIS mobile commerce platform.