Mobile Payments Are Expanding

Keith Dawson at the CMO Site, writes about the coming, dramatic increase in mobile payments. One study estimated the the mobile payment market could reach $618 billion by 2016. Currently, credit card companies, banks, software companies and mobile device manufacturers are all looking to carve a large slice of that market.

Visa recently announced the creation of a PayPal competitor tied to Visa accounts, intended to bolster its credit card business. American Express also announced a PayPal competitor, not tied to any card, and aimed at replacing cash, check and credit card payments with a new form of digital payment.

Near-Field Communication (NFC) has a technology intended to make smartphones into digital wallets, able to make payments at retailer receivers. Both Apple and Google have looked into incorporating an NFC chip in their phones. Apple would likely take a portion of the transaction fees whereas Google would profit from associated advertising.

These new transactions via smartphone, along with location-based information, means marketers will have much more data about customers and the sales process.

View Original Article