Investigating the current mobile-payment landscape
Mobile payment services, like Chase Bank’s QuickPay, have really taken off. Also referred to as mobile money, mobile banking, mobile money transfer and mobile wallet, the term generally refers to the ability to send money with a mobile device. So what does that mean for ecommerce companies? Are the days of paying with cash, check and credit card really on their way out?
According to current sentiment, not just yet.
Although it sounds like the answer to an on-the-go lifestyle, there’s a bit of apprehension surrounding mobile payment services. And especially so, considering the recent news reported by Mashable.com in the article titled, “Buyer Beware: Mobile Payments May Not Be Secure.”
According to the editors at Mashable.com, “Stephanie Martin, associate general counsel for the Federal Reserve Board of Governors, warned members of the House Financial Services Subcommittee on Financial Institutions and Consumer Credit that in the broader regulatory scheme, many mobile systems may not be covered, especially those used by people or organizations that aren’t banks.”
Causing an even darker cloud over the new, convenient payment method is Apple’s hesitance to dive in. Keep in mind, however, that it’s not rare for Apple to wait until a technology is a proven. “Holding back in mobile payments was a deliberate strategy, the result of deep discussion last year,” the Wall Street Journal reported. “Some Apple engineers argued for a more-aggressive approach that would integrate payments more directly. But Apple executives chose the go-slow approach for now.”
The hard-and-fast reasons behind the decision are yet to be officially declared by the corporate folks at Apple, but the inaction should be considered a cautionary sign for small businesses. Jumping in too soon could make for a serious financial folly. Perhaps for some, the best action would be to follow the lead of proven players, even if that means to wait.
But companies shouldn't get too comfy resting on their laurels. Mobile-payment transactions are expected to exceed $600 billion worldwide by 2016, according to market-research firm Gartner Inc., up from $172 billion this year. Being ready for the surge will be an advantageous position to be in.