Acclaimed online retailer Amazon has announced the acquisition of GoPago, a mobile commerce firm based in San Francisco, California. Amazon has been working to establish a more formidable presence in the mobile space in recent years, aiming to compete with companies like eBay that have found a great deal of success by engaging mobile consumers. The acquisition of GoPago may provide Amazon with the extra tools it needs to overcome the competition.
Firm shows promise in the mobile sector
GoPago was launched in 2009 and is responsible for a mobile application that allows users to browse and pay for products from their smartphones. The firm later went on to specialize in point-of-sale software, developing solutions for merchants interested in engaging the mobile audience. JPMorgan Chase invested an undisclosed amount of money into the firm in February of this year, adding to GoPago’s stance in the mobile sector and attracting a great deal of attention to the firm.
Ambitious new projects may be coming in the future
GoPago suggests that its acquisition by Amazon will open the door for ambitious new projects, but what these projects will be has yet to be announced. Amazon itself has yet to announce any new and ambitious mobile projects as the company has been somewhat heavily focused on the projects that are already underway. How GoPago will fit into the Amazon portfolio and what benefits it will bring have yet to be seen.
Retail mobile commerce is becoming more competitive
Mobile commerce has become quite popular in the world of retail. Several prominent companies have been investing heavily in the mobile sector in order to engage in a new generation of consumers. Currently, eBay and Amazon hold a very formidable place in the mobile retail sector. Companies like Square and Google are attracting more attention as providers of mobile commerce services and mobile wallets, however.
Flint Mobile, a company that specializes in mobile payments, has announced that it has raised $8 million in Series B funding. Flint is unlike Square and PayPal in that it uses a mobile device’s camera to conduct mobile transactions rather than a peripheral that can scan credit card data. These peripherals have become a popular alternative to NFC technology, which has long formed the backbone of mobile commerce. By avoiding NFC technology, companies like Flint have been able to make mobile commerce more accessible to a wider range of consumers.
Verizon invests in Flint
Flint has not yet released any information concerning its roadmap for the future, but it is likely that the company will begin working with the Digicel Group, which provided a significant amount of the company’s recent funding. Digicel is a mobile service operator with business primarily in the South Pacific. Digicel has big plans for mobile commerce, but may run into competition with Verizon Communications. Verizon has also invested in Flint, pumping an estimated $2 million into the company.
Mobile operators look for alternatives to NFC
Flint claims that mobile operators appear to favor its approach to mobile payments. Companies investing in mobile commerce have been looking for new payment services and technologies in order to meet the demands coming from consumers. Many consumers are looking for a simple alternative to NFC-based solutions, which are not accessible to those without NFC-enabled devices. Others simple want a secure platform that they can conduct transactions through. Investing in new services helps mobile operators find services that can meet the interests of consumers.
Flint faces staunch competition
Flint is growing in popularity, but there is no shortage of competition in the mobile commerce space. Other firms are looking to promote their own mobile payments platforms and have also been able to attract healthy attention from investors. Even if Flint manages to overcome the opposition of other startups, it will have to compete with larger companies, like PayPal and Google, if it wants to find success.
