Category: Mobile Payments

Banks are beginning to take mobile payments seriously

| March 14, 2016

Several large banks are working to serve mobile consumers better

Major banks in the United States are beginning to take the fight to the mobile payments space after resting on their laurels for several years. Banks had been wary of introducing innovative services and platforms in the past due to the financial crisis of 2008. Now, however, banks are finding that the mobile commerce space has the potential to be quite disruptive. While the mobile commerce space is intrinsically connected to these banks, they want to ensure they can compete on a level that the mobile commerce space has been able to corner, and that involves engaging consumers more effectively.

Banks are beginning to make use of the clearXchange system

For years, mobile commerce companies have made it possible for consumers to send and receive money almost instantaneously. Peer-to-peer payment services have become very popular among young consumers, many of whom rely very heavily on their smartphones. Banks see this as an opportunity, and many have begun to use the clearXchange system, which allows for instant money transfers to friends and families. Customers with U.S. Bancorp and Bank of America can now send money instantly thanks to the new system. JPMorgan and Capital One Financial plan to begin using the system later this year.

PayPal highlights the success companies can find in the mobile commerce space

American banks and mobile paymentsThe reason the mobile commerce space has become more important to banks is because consumers are becoming more mobile-centric. In the early days of mobile commerce, PayPal managed to find significant success and growth by engaging mobile consumers. In 2013, PayPal acquired mobile payments firm Braintree, which had control of the Venmo mobile application. Last year, Venmo processed more than $7.5 billion in money transfers between consumers. In January of this year, some $1 billion in money transfers had been handled by Venmo.

Banks want to find the same success that PayPal has seen over the past few years

The success PayPal saw through its early acquisitions is something that banks want to mimic, especially as more consumers become involved in the mobile commerce space. These banks will have an uphill battle, however, as many consumers have already become comfortable with the mobile payments services they are currently using.

Google introduces yet another mobile payments service

| March 11, 2016

Google launches Hands Free service, making transactions more convenient

Google is working to take mobile payments to the next level. The company has launched a new hands-free, voice activated payment application, which is currently being tested in San Francisco, California. Called Hands Free, the service is meant to make mobile commerce more convenient than it already is. It could also give Google and edge in the mobile commerce battle if it can find favor among consumers that often use their mobile devices to shop for and purchase products online and in physical stores.

Hands Free uses an assortment of innovative technologies

Hands Free makes use of a combination of technologies, such as Bluetooth, Wi-Fi, and location tracking technology to allow the service to communicate with point-of-sale systems. When this is done, consumers can confirm purchases by saying the phrase “I’ll pay with Google.” Hands Free is a standalone service with no association with Android Pay apart from also being developed by Google. The company believes that the voice activation technology powering Hands Free can make mobile payments more convenient than it already is.

New service could be risky for consumers involved in the mobile commerce space

While Hands Free makes use of innovative technology, it may also suffer from certain security risks. Theoretically, the voice activation technology could be abused by those that want to take advantage of consumer financial information. In order to combat this, Google has equipped Hands Free with numerous security features. One of these features will ensure that cashiers can verify the identity of the person using Hands Free before a purchase is finalized.

Google continues to search for a foothold in the mobile commerce market

Google has been fighting an uphill battle in the mobile payments space. The company entered into the market mobile commerce market relatively early with its Google Wallet platform. The Wallet was somewhat unpopular among consumers, leading Google to change its mobile commerce plans. Now, the company has Android Play, which is has become its flagship payment service that is set to compete with those coming from other major technology companies.