Mobile commerce efforts may be enhanced with StackMob
PayPal has announced its acquisition of StackMob, a technology development firm with a focus on the mobile sector. The move is expected to improve PayPal’s already considerably presence in the mobile space by giving the company access to innovative tools that have been developed by StackMob. These tools may serve well in PayPal’s ongoing competition in the mobile commerce space. The company is currently vying for the attention of mobile consumers against firms like Square, Google, and Amazon, all of which also have a strong interest in mobile commerce.
Firm shows promise, but lacks financial backing
In 2011, StackMob was able to raise $7.5 million in funding from various investment groups. Despite the firm’s apparent popularity, it had been struggling with raising additional funds through other initiatives. Yahoo reportedly had shown interest in the firm, but did not make a move for acquisition. The firm’s 18 employees will now be incorporated into PayPal, where they will likely work on various mobile projects and help the company compete more fiercely in the mobile commerce field.
Recent acquisitions may give PayPal an edge
PayPal recently acquired Braintree Payment Solutions, which is behind some of the most innovative and popular mobile commerce solutions in the market. Braintree is expected to help PayPal appeal more to merchants and consumers alike with its mobile-centric services and StackMob may be able to augment these services with its expertise and the tools it is bringing to PayPal.
Mobile commerce competition heats up
Competition in the mobile commerce field is quite aggressive. Large companies like Google and Amazon have a strong presence in the sector and are pushing to establish absolute dominance therein. PayPal has the benefit of being tethered to eBay, however, which already has a formidable mobile presence. Backed by recent acquisitions, PayPal may be able to compete with large companies on its own while also providing some benefits to eBay.
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
