Mobile Payments

People always have their cell phones on them. And as stated in my prior post on mobile advertising is a growing industry. Even businesses are incorporating the use of mobile devices in-store by accepting mobile payments. What?! People’s smart phones are now being used as credit cards. Through different apps, such as LevelUP, Google Wallet and Square, people no longer need to carry a physical credit card on them.

Benefits of mobile payments:

  • Lower costs
  • Increase transaction speed
  • Collect customer transaction data
  • Increase Revenues

According to Juniper Research, global mobile payment expenditures are currently at $240 billion dollars, and are projected to reach $670 billion by 2015!

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Different mobile payment apps:

  • LevelUp
    • LevelUp uses QR codes to indirectly (to keep credit card information secure) store users payment information that can be scanned by merchants
    • Benefits: richer experience for customers, including a reward/mileage system. Also doesn’t charger the merchant a processing transaction fee and can run virility campaigns for companies
    • Drawbacks: not every merchant uses LevelUp
  • Google Wallet
    • Google Wallet stores credit card information in its application, and a customer needs to enter their pin and scan tap their Android phone against the terminal to make the transaction
    • Benefits: used in some big retailers such as Macy’s, Walgreens, CVS and Old Navy
    • Drawbacks: limited reach only compatible with newer Android phones that use Sprint as a carrier
  • Square
    • Square requires users to input their name, credit card number and a picture of themselves, used for identification purposes at the time of the transaction
    • Benefits: extra security for users, and can be used on almost any Android and Apple phone
    • Drawbacks: Not all merchants use Square

Mobile-Payment

While the payment apps allow merchants to gain insight on their customers, there are a few issues with mobile payments:

  • Not all merchants use mobile payments
  • No one really needs them
  • Require merchants to purchase extra hardware necessary to process transactions

 

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