Mobile Competition Heating Up!

Mobile’s Retail Status Report

Earlier this year the mobile payments business shifted into a higher gear with the formation of Isis and the immediate success of the Starbucks mobile payment system, which proves that a “single brand” approach can work spectacularly.

Nordstrom also rolled out their version of Apple’s highly successful in-store mobile POS payment system. It has received a spectacular reception as it produces a much more pleasing customer experience by enabling a purchase to be made anywhere on site.

For instance, a customer in a dressing room with a number of different items, sizes and styles now instantaneously checks out. No gathering up of packages and bustling over to a waiting line of customers at the point-of-sale, and by the time the clerk get’s to them, an impulse decision may evaporate and a sale can be lost.

The customer now simply hands the attending sales clerk the desired item(s), the clerk scans the product barcode with a mobile infrared scanning and payment card-swiping device (an iPod is encased in the device), and then swipes the payment card, hands the device to the customer, captures the signature (and photo if desired) on the device and automatically embeds it on the printed and/or emailed receipt.

In the spring the mobile wallet segment heated up with the launch of Google Wallet, aimed at local advertising, with a strategy shift by Isis towards a platform approach. All year, the payments space also got a boost from Square’s stunning success. 



We should take a hard look at wallet business models and transaction models, with additional attention paid to retailer strategies that have become more public, as well as a deeper look at the retail terminal perspective, now that some leaders now will strive to achieve a critical mass of users with NFC being the trail blazer. 



Many providers are already looking at payment systems focused on the restaurant and other vertical segments. By capitalizing on technology and devices such as Apple’s iPad, we’re seeing popular new services such as ‘pay-at-the-table’ in the restaurant space, which mollifies the concerns of those aware of how easily and quickly cardholder information is skimmed.

Instead of anxious waiting customers, patrons are comforted that their card doesn’t leave their possession, thereby eliminating the chances of fraudulent skimming of cardholder information. And they are impressed with the merchant who is providing cutting edge and differentiating service. An iPad also displays the restaurant’s menu with rich colorful graphics or video.

Additionally, some systems originally focused on online transactions now are shifting towards “real world” applications as well. Watch out for PayPal, Google and Apple, each of whom has designs on the mobile payments retail space.

There are subject matter experts in some parts of the ecosystem, which are developing pockets of value in different market niches. 

We anticipate success by those that bring value with features and content to specific niches, such as retailer programs
 similar to Apple and Nordstrom.

Another niche is the medical space where an ISO such as ABC Mobile Pay is developing a ‘Patient Responsibility Calculator’ that captures payment at the point-of-service after determining the patient’s insurance carrier eligibility. Depending on the procedure provided it then calculates an accurate estimate of the patient’s final financial responsibility and enables the payment to be captured immediately or recurring payments can be set up.

Mobile wallet services and platforms
, mobile payment approaches
, terminal and device choices
, payment ecosystems
, business and revenue models

 are all competing to become an integral part of what will soon prove to be an important and ubiquitous activity in our everyday lives, mobile transactions.

For more information contact Rick Berry - rick@abcmobilepay.com - 877-258-5223 – www.abcmobilepay.com