Written by Stephen Vagus

Author: Stephen

Facebook breaks into mobile payments

Stephen | March 20, 2015

Facebook has announced a new service that will be available for the Messenger app

Facebook is making its first official entry into the mobile payments space. The social media company has announced that it will soon allow users of its Messenger application to send and receive money. The service will be free, but will see a limited initial launch in some parts of the United States. The launch will be taking place over the next few months, eventually be made available to all Messenger users in the country.

New service will allow users to send and receive money over Messenger

Facebook has partnered with Visa and MasterCard in order to make the service available. Those with Visa or MasterCard cards, as well as those with debit cards from a U.S. bank, will be able to transfer money through the new service. The service will be accessed through a “$” icon that will be added to the Messenger app in the near future. Once this icon is tapped, users will be able to note the amount of money they can send to their friends. All those using the service will have to link their financial information to the Messenger app.

Consumer information will be stored in a secure environment

For security purposes, users will have to use a PIN number to authorize money transfers. The company notes that all financial information will be kept in a secure environment that is entirely separate from other parts of Facebook. The service will also be monitored by fraud prevention specialists, who will analyze the service to determine whether or not suspicious activity is present among users.

Facebook will face competition from other companies entering the mobile payments space

Facebook has been showing strong interest in mobile payments for some time. The company sees a great deal of promise in this sector, largely due to the number of consumers that spend money online over their mobile devices. Facebook will be competing with other companies involves in mobile payments, such as PayPal, and may soon be competing with Twitter and other social media platforms that have recently entered the space.

Wal-Mart grows more focused on mobile payments

Stephen | March 18, 2015

Retailer aims to preserve the convenience and security of mobile shopping

Wal-Mart has been experimenting with mobile payments for some time now and the company is beginning to focus more of its efforts on the mobile space. According to Charles Holley, Chief Financial Officer of Wal-Mart, convenience has become one of the most important aspects of mobile commerce, and ensuring that this convenience remains intact as mobile payments become more prominent is becoming a priority. Security and eliminating the costs associated with mobile payments is also becoming important.

Retail is changing to become more mobile-centric

The retail space is beginning to shift and more consumers are beginning to rely on their mobile devices to shop for and purchase products. Finding ways to make the mobile shopping experience enjoyable is important, but Wal-Mart is not yet sure what role mobile payments will play in its overarching business. This may involve exploring new payment options in order to ensure that the company remains on the cutting edge of mobile commerce.

CurrentC may not be the solution that retailers need for the mobile space

Walmart Store - Mobile Payments Wal-Mart is currently part of the Merchant Consumer Exchange, a consortium of retailers that has its own mobile payments system called CurrentC. The system makes use of QR codes in order to process mobile transactions and boasts of a “secure cloud-hosted network,” which provides extra security for those making payments. CurrentC is currently in a private testing phase and the Merchant Consumer Exchange is beginning to feel pressure to release a comprehensive mobile payments solution in order to compete with other options that are available.

Without an effective solution, retailers may opt to use other mobile payments platforms not developed by the Merchant Consumer Exchange

If such a solution does not come soon, Wal-Mart and other retailers may opt to use other mobile payments platforms, such as Apple Pay. Those involved in the Merchant Consumer Exchange cannot use other payment solutions at this time, which has limited their ability to engage mobile consumers in effective ways. With mobile shopping growing in prominence, this may no longer be a sustainable practice.