Mobile Payments: Make Sure You’re Ready
Let's talk about mobile payments...
Mass adoption of smart, connected and mobile devices globally has been transforming consumer behavior and dramatically evolving shopping experiences. Every device is now used for commerce. In fact, Juniper Research estimates that by 2015, an overwhelming 2.5 billion consumers globally will buy digital goods via devices, utilizing mobile payments. Getting there has been a challenge for all those involved since consumers find some forms of mobile payment technology difficult, and some merchants lack the expertise and resources to make mobile payments a reality. This is in spite of the fact that 51% of merchants have made attempts at mobile payments and checkout, making it a top priority for 2013. (Forrester)
There are four primary models for mobile payment options;
Poor reliability, Slow speed, Security, High cost, Low payout rates, Low follow on sales.
Direct Mobile Billing
Secure, Convenient, Fast, Proven.
Mobile Web Payments (WAP)
Wide range of options; direct operator billing, credit card, online wallet.
Contactless NFC (Near Field Communication)
Newest, unproven, possible security issues.
There are also other services that are somewhere in-between the primary models. Paypal, for example, is an online wallet in the cloud, that also has an API which can link to vendors. Paypal has a variety of SMS payment features, as well as direct mobile billing.
Yes, prominent merchants such as Starbucks are beginning to implement technology to cater to their customer’s needs. However, we need to take this to the next level by making the mobile payment experience better across thousands of merchants, different consumers, different products and/or different shopping experiences.