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!


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


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


Where’s my phone? – Mobile Advertising

phone obsesedNowadays, it occurs more often than not when in social settings, people pay closer attention to their cellphones than to one another. Our mobile phones are an indispensable part of our daily lives, to the point where people don’t feel whole without them. According to Daina Middleton, Global CEO of Performics, a search and performance media agency, “mobile phone users report that they consider the device to be so personal that they do not allow it to stray more than a foot away from their person 24 hours a day, seven days a week. A mobile device is more than just a communication tool.”

So what am I getting at? People love their smart phones, and there are big opportunities that should be capitalized on in mobile optimization and mobile marketing. As stated in Mobile Markter’s Classic Guide to Mobile Advertising, “where there is an identifiable audience, there is an identifiable advertising and marketing opportunity.” If your audience is on mobile, you should be too! There has been a shift towards mobile for branding, finding leads and building audiences and customer relations. The Classic Guide to Mobile Advertising elaborates on the role mobile advertising is taking in the industry, stating that “mobile advertising in 2013 will reach 7.19 billion, up 77% from 4.06 billion in 2012. The projection for 2014 is 11.14 billion, a 55% anticipated increase from the previous year.”


Reasons to use use mobile advertising:

  • Smart phones are the future and people have connections with their phones – capitalize on the opportunities because customers are on mobile
  • Mid-sized businesses can execute targeted campaigns
  • Higher engagement through mobile optimized websites and mobile applications
  • Geo-targeting is more reliable because of mobile features such as GPS, Wi-Fi and cell ID towers
  • It’s FREE to create mobile versions of websites and can’t hurt a business

Get started:

  1. Set objectives – decide what you want to go mobile with and what it will help you achieve
  2. Integrate – how can mobile be combined with your existing marketing efforts and how does it does it help your target market
  3. Segment – use location based ad networks to personalize messages, the distribution needs to be appropriate for your various segments
  4. Do It Yourself – many tools are offered in order for you to create and customize your own mobile optimizing, it also cuts costs
  5. Personalize – it is important to utilize the customer data that can be obtained in order to create customer loyalty. Allow customers to opt-in to option such as receiving special ad offers