Those with smartphones will find less need to use plastic or cash to make payments as mobile commerce payments are expected to have a huge upswing in 2013.
Financial companies set to gain in mobile commerce
Thus far, mobile apps for payments have been a huge disappointment, but a group of mobile industry heavyweights believe financial services will successfully tap the market for paying with mobile apps, making cash and credit cards optional for smartphone owners. The big winners are thought to be established financial groups like Visa and banks, along with online payment giant Paypal.
How it works
Forgetting your wallet when you run out to the store may not longer be a big deal as long as you have your smartphone and an app that allows retailers to take your mobile payment. Customers can now use an app with facial recognition technology or they can simply produce a credit-card enabled smartphone for payment. In fact, clerks can now see customer faces on their screens along with purchase history, allowing them to make a more personal connection with their customer base.
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Paypal to win big in mobile commerce
Visa, MasterCard, and traditional banks are all projected as winners in the battle for your mobile payment business. One company that holds a lot of promise is Paypal, the online payment company that is used to make payments all over the internet. It is predicted that Paypal alone with see $10 billion in mobile transactions in the next year alone.
Paypal made its in-store payment app available to customers late in 2012. The app allows customers to sign into their account and then they will check in to their location using GPS technology. Their purchase can then be paid for via mobile payment app with a few clicks on their smartphone screen. The check-in allows the store to view more information about the customer as well. Any merchant could know a customer’s name and preferences before that customer enters the establishment.
Mobile Industry Challenges
The technology for mobile commerce is already being used with some success in places like the US and Australia. The new programs do not come without added challenges. There is a fee paid by the merchant per transaction, but that does not differ much from fees for accepting credit cards. Mobile payments will not be hugely successful until more retailers sign on. However, because this payment option can take seconds as apposed to minutes, many retailers interested in faster and more personal service will be inclined to sign up.