Near field communication (NFC) technology has made it possible for a smartphone user to combine all of his or her credit cards, loyalty cards, gift cards, and even discount coupons in a single secure location so that they can all be conveniently carried all the time within the one device.
The NFC technology allows users to leave their physical wallets at home and bring their mobile wallets with them wherever they go as long as they have their smartphones with them. Then, when they reach a checkout counter, they need only wave or tap the device in order to complete a transaction.
Many different mobile payment systems have already been launched, including Google Wallet, PayPal mobile payments, and Isis. Marketers are starting to discover that this technology is going to have a revolutionary effect on marketing as a whole.
To start, the integrated initiative for m-commerce will fuse loyalty programs and mobile discount coupons with the mobile payment process. This will provide merchants with the ever-desired ability to track the purchasing patterns of their customers.
Merchants and marketers will also have the information that they require to answer some of the most critical questions that they have about their customers, including who they are, how frequently they shop, how much they usually spend, and what their buying behaviors are.
The availability of this data will allow merchants and marketers to work together to develop targeted mobile offers and discounts that are relevant to individual customers, directly from the point of sale.
