Mobile Payments Are the Future of the Payment Industry

Back in the nineties when the internet revolution was in its early stages of development, everyone marveled at how it could change the world, but hardly anyone fully grasped the overwhelming impact that it would soon have on our lives.

Yes, there were futurists that predicted wide-sweeping changes in how we do business, communicate, and access information. Prices for goods and services would plummet, as buyers went straight to the source and bypassed countless middlemen in the transaction.

These changes and more have transpired over the past two decades, but another marketing prediction is about to explode on the scene. As the thinking goes, instead of marketing to a nebulous crowd of consumers, futurists foretold of a time when data and access would lead to direct marketing to the individual, based on his specific buying preferences as exhibited in prior transactions.

The “missing link” in this “Brave New World” was the emergence of full PC and Internet capability down to the “on-the-go” consumer, whenever and wherever he might choose to be. What was perceived to take a few generations to come together, however, is here with us today.

When Apple introduced the iPhone in 2007, the race was on. There had been many developments over the years by others to support the evolution of smartphone technology, but Apple demonstrably changed the market dynamics.

Smartphones are powered by a complex operating system, fully capable of accessing the Internet and performing advanced software applications in the palm of your hand. Suddenly the future was now before our eyes. A “tsunami” of change was fast approaching that would soon impact our connectivity, ability to find what we desired at the best price, and revolutionize how payments and commerce were transacted.

The Gartner research firm is already predicting that 1.2 billion smartphones and tablets will be sold worldwide in 2013, adding to another 821 billion in 2012. Add to this data that 25% of U.S. citizens will have some form of branded mobile application on their phone, and one can easily surmise that market competition is already heating up.

Technology providers are already developing the products that will integrate search engines, social media, and payment processors together to offer one seamless buying experience for the consumer. Imagine shopping in a store, and, during checkout, your smartphone receives a text message informing you of a special promotion on another store item that may interest you.

These applications are already being tested and go by many names -- “Interactive POS Marketing” or “Universal Commerce”, to name a few.

Wireless payment terminals, smartphone scanning applications, and mobile wallets are just a few of the new innovations in the payments arena. The un-banked population will also offer expanded opportunities for sales going forward.

From a merchant perspective, it is no time to be left behind in the dust of your competitors. The time is now to align with a forward-looking payment processor that can assist you with the coming waves of change. .

  Ms. Bekiroglu

About the Guest Author:

Ms. Bekiroglu is a published freelance writer and editorial consultant for mobilepaymentgeek.com. After receiving a Bachelor of Arts degree from the University of South Florida, she became determined to eliminate her student loan debt, thus becoming very knowledgeable about money management.