The truth about the collection and use of eReceipts and mobile payment data

Geotargeting

Geomarketing
Mobile payments and eReceipts are primed and ready to become widespread, but as this is a brand new technology and technique, many people are wondering how the data collected from their devices in order to perform those transactions will be used by retailers and merchants.

The traditional online marketplace, with its e-commerce, email marketing, and other forms of online advertising, are now considered to be technologies that have matured, and standard privacy practices are in place to help regulate them. There had been a wrench thrown into the works by more recent developments with retargeting, though it has settled, become accepted, and is considered to be a non-invasive, routine practice.

People feel very differently about being tracked in terms of what they are viewing and being tracked in terms of what they are actually purchasing – especially when it comes to purchases being made in the physical world. This feeling is making consumers wonder how their mobile payments and eReceipts will be used in order to collect data to them, and what the consequences will be to their privacy.

This concern has been compounded as government regulation is having a hard time keeping up with the latest developments in technology. Even traditional internet marketing didn’t start being regulated until the 2003 CAN-SPAM act, though email marketing and spam had been around for years by that point. Technology has left regulation in a never ending state of catch-up.

Retailers – as well as many other companies from mobile service providers to mobile wallets – essentially want to “own” their customers. In order to do that, they must know who they are. However, this conflicts directly with the desire customers have for a strong privacy policy. When companies are exposed to all of the purchases made by individual consumers, though, this does make it very tempting to collect what data they can in order to better understand them, cater to them, and market to them.

Ultimately, it will be consumers who decide which platforms for eReceipts and mobile payments will pass their test for adequate security and privacy.

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