New options now available for paying with a smartphone.
The mobile payments landscape is experiencing explosive growth and evolution, and Paydiant has now introduced the next level through the use of QR codes.
This company has made its mission to show smartphone users that there are options available.
Though many people think of mobile payments and only a few main companies – all with similar overall strategies – come to mind, Paydiant is hoping that it will make a difference in the smartphone user’s ability to complete transactions. It wants to do this not necessarily by becoming the next big name, but instead by offering the next big option: QR codes.
The mobile payments strategy is to make scanning QR codes the latest alternative to traditional credit cards.
Until now, these barcodes have been used primarily for much smaller tasks. For example, they are commonly found on print ads that can be scanned in order to direct smartphone users to landing pages, commerce websites, and videos. Some stores are also using them to provide more information about the products that they are selling than can be posted on signage.
Padient’s goal is to bring this technology to the mobile payments environment.
According to the company’s founder, Chris Gardner, “We said, hey, regardless if that becomes a viable model, we believe there’s an opportunity for someone to offer mobile wallets and offers solutions to brands.”
Gardner’s company is also looking into NFC technology, so that they will be ready for it once that becomes more common in smartphones.
However, at the moment, they are enjoying the mobile payments opportunities that are presented by QR codes, as they are far more accessible by the devices that are currently available among a large percentage of consumers. They have already managed to have five banks across the country sign on for trials, and have accumulated almost $20 million in funding. This is a significant breakaway from the more common thinking in this sector at the moment, but it could prove to be quite a profitable one if the tests run well and consumers demonstrate their interest in using this technique to make purchases.