Beware! The mobile industry is still in the adolescent stage. That puts Mobile Payments in the infant category. While many expect mobile payments to mature rapidly, one thing you can bet on is complete chaos before a true solution emerges with clarity.
Some highlights:
- WalMart and Target are among nearly two dozen retailers working together on a mobile payment system which will compete with Google Wallet
- Google created Google Wallet with MasterCard, Citigroup and Sprint Nextel
- Samsung is building phones with a chip to support NFC (near field communications) using Google Wallet
- The Isis venture is another payment system formed by AT&T, Verizon and T-Mobile with Capital One, Barclays and JP Morgan Chase recently joining the mobile payments chase
- PayPal is rolling out its digital wallet at Home Depot. I’m sure other partnerships are in the works…
- Starbucks rolled out its own mobile payment solution last year
Each mobile payment system utilizes a different approach for security and conducting the transaction. For example, the Paypal/Home Depot solution requires you to give your phone number at checkout and then you punch in a pin at the register. Samsung’s phone with the NFC chip will act more like a credit card with Google Wallet (e.g. you put your phone close to a reader that captures your unique information to settle the transaction). Where all this ends up is anyone’s guess. However, I am quite certain that standardization and rationalization will have to occur before mobile payments moves beyond hype and reaches the masses.
These two articles help explain in more detail:
Retailers Join Payment Chase – WSJ.com
How will mobile payments play by Walmart, Target affect Google Wallet, Isis?
