Tag: pay with phone

Although you cannot completely do away from your leather billfold, but this new technology called mobile wallet is gradually invading on your leather wallet. Well, one good thing that it is doing is saving paper and conserving environment.

MasterCard is the one of the companies that is doing well in mobile wallet market.

It has a belief which wants the world to look beyond cash. Recently it has upgraded the shopping experience with new innovations to Mobile Wallet Technology. It has added new service called ShopThis! This will help customers to leverage this new market. Well, it is a good option as world is getting more aware and inclined towards digital payment services.

Digital Wallet is all set to for transforming natural way of transaction. Mobile Commerce is claimed to be the largest growing sector by 2020. Mobile ticketing and mobile money transfer will follow. The main reason behind this growth is increasing use of mobile payment services. But still a large chunk of population prefers traditional Cash and Card payment. One major reason according to AMR report is Security concern among them with technological infancy. A recent report published by Allied Market Research projects that the market for Global Mobile Wallet will reach $5,250 billion by 2020 at CAGR of 127.5%.

Mobile Wallet has really transformed shopping experience of many consumers with its enhanced and astounding features.

It has brought the physical and digital market virtually at one place. Looking at its potential, many telecom companies are coming together to innovate and give a better product. This will act as a catalyst for market growth. PayPal has emerged as best player in Mobile Wallet solutions. As per survey by Forrester to 4000 consumers, PayPal got 38% of vote while Amazon followed it with 35% of vote. Google is the biggest player in NFC (Near Field Communication) mobile technology with the launch of mobile wallet technology in 2011.

Application, Mode of Payment and Stakeholders are there segments that form Mobile Wallet market.

Application segment is further divided as Mobile commerce, Mobile ticketing, Mobile money transfer etc while Mode of payment segment is comprised of NFC and remote payment. Stakeholder’s segment includes Service providers, Handset manufacturers, Mobile operators, OSS/BSS solutions etc.

Author: Ashish Gedamkar

Google Wallet might be a bust, but according to recent Gartner research, mobile payments are growing dramatically, with transaction values predicted to hit the $235.4 billion mark in 2013. The question is, what do these seemingly synergistic, yet opposing trends, say about the emerging cashless society? And how can merchants navigate the mobile payments landscape?

With all the hype around wallets, you’d expect that lots of people are using them. Not so much. They will account for only 2 percent of total mobile transaction values in 2013 according to Gartner. In spite of all the hype, NFC services like Google Wallet and Isis aren’t catching on with consumers.

The big driver of growth is plain old mobile money transfers, which are projected to make up about 71 percent of total transaction values in 2013.

For those of us who operate in the global payments ecosystem, these statistics are no surprise.  In many regions outside of North America, mobile phones are the single most ubiquitous computing device, and they are used in a wide variety of ways for commerce and payments. In Africa, two-thirds of the Kenyan population filters $13 billion – more than a quarter of the East African country’s gross domestic product – through M-Pesa, which is the world’s leading mobile money network. Many of those transactions are money transfers or country-specific payment approaches.

The mobile payments market is so fluid, complex, and nascent; it’s very difficult for merchants to predict consumer adoption of any given approach.  At the same time, merchants can’t afford to ignore the mobile payments market — it’s simply too large, with huge potential for commerce growth.

Confronted with complexity, many online merchants have limited their payment options to cards and PayPal, bypassing incremental mobile sales using other payment methods. This is a mistake. The most successful ecommerce merchants are both mobile and global. Starbucks is a great example of a global brand that has cracked the code on engaging consumers by integrating mobile payments tightly with the in-store experience and providing loyalty incentives that delight consumers.

For merchants who don’t have the resources of a Starbucks or Amazon, payment processing platforms can simplify the complexity by handling a wide variety of payments worldwide while integrating mobile and online commerce. Instead of placing their bets on a handful of payment methods, merchants can tap into dozens of payment methods, languages and cultural approaches that look quite different depending on whether the consumer lives in Abu Dhabi or Los Angeles.

Merchants can no longer choose between online and mobile payments – they need both to stay competitive.  As mobile phones turn into payment devices, ecommerce will change dramatically, reaching consumers everywhere on a global scale.

Ralph Dangelmeier is CEO of BlueSnap, a global payment service provider powering the checkout process for eCommerce merchants worldwide, and fueling growth for online businesses serving digital, physical and mobile markets. BlueSnap has reinvented the checkout experience by combining the power of four key components: Seamless integration into the storefront, global payment processing, award winning smart subscriptions, and dynamic marketing tools for up-sell at checkout.