Mobile is clearly becoming a new way people shop“. That quotation of eBay’s CEO John Donahoe’s
points out the relevance of mobile commerce since 2010. During the last
two weeks we recorded a multitude of liaisons between telecommunication
providers and financial services which absolutely emphasize Donahoe’s
point of view – but with regard to one of the currently hottest topics
within digital – Mobile Payment.
Since players within the German market are still concerned with go-to-market strategies and the assurance of high security levels, the USA and United Kingdom are a step ahead with pilot programs in selected retail stores. With the enormous spread of smartphones all over the world, once more cell phones have become people’s constant companions. Wouldn’t it be relieving to leave the wallet at home and use the smartphone instead of buying the newest goodies? That rhetorical question is reason enough to take a closer look at mobile payment realizing partnerships.
In May 2006, Google activated a chorus of murmurs with its registration of the domain googlemastercard.com. Everybody was wondering to what extent that tie-up would change the online and offline payments market. Exactly five years later, Google Wallet hits the market – meaning customers with a Mastercard of Citibank are now able to pay with their Android smartphone Nexus S out of the mobile network Sprinter at partnering merchants situated in New York and San Francisco (e.g. Macy’s, Subways and Wallgreens). Just the last sentence makes obvious that the collaboration’s dash into the mobile payment future contains a bunch of restraints and immediately draws legal consequences: Paypal scents knowledge stealing since its former Manager Osama Bedier was headhunted by Google at this year’s beginning.
Abroad, within the United Kingdom, Samsung and Visa as well as Orange and Barclays also use the technology of Near Field Communication chips and special cash desk terminals to provide mobile payment possibilities. First mentioned use the outrageous media presence of 2012 Olympic Games in London to introduce their co-product. While Samsung is responsible for NFC hardware, it is Visa’s task to develop a corresponding mobile payment app. With regard to efficient marketing activities, all athletes will be provided with Samsung’s NFC-enabled phones and during the games all users will be able to pay with their smartphones at more than 60,000 locations within Greater London. Compared to Google’s approach, Samsung and Visa are already planning how to spread their service globally through different partnerships.
Indeed, Barclays and Orange just launched their Quick Tap contactless payment service at their bestselling handset (Samsung Tocco Lite) with which users are able to purchase low-value items (up to £15) in more than 50,000 shops throughout the UK. Choosing the low-priced headset for £60 is an interesting part of that collaboration since the majority of mobile payment services has been introduced for the most innovative smartphone series. But in this case sales numbers were more decisive.
These cases illustrate different approaches but all prove the importance of marketing partnerships regarding market entrance and correlated risk-sharing. As the infrastructure of Near Field Communication is still in the early stages of development, partnerships between the different enablers of mobile payment are the best way to entry the market, to observe product acceptation and to adjust deficits with a manageable extent of risks. Since product acceptation is the most critical point, the mentioned partnerships act jointly to address concerns about data protection and security.
Consequently, that kind of partnership is worthwhile for the enterprises, but until now customers only benefit from that service if they have the corresponding mobile carrier, handset, bank and retail store. The question arises, whether the installed technologies will soon fit to every brand, so users will be able to shop via mobile payment without any restraints – then mobile really changes our way to shop!
Since players within the German market are still concerned with go-to-market strategies and the assurance of high security levels, the USA and United Kingdom are a step ahead with pilot programs in selected retail stores. With the enormous spread of smartphones all over the world, once more cell phones have become people’s constant companions. Wouldn’t it be relieving to leave the wallet at home and use the smartphone instead of buying the newest goodies? That rhetorical question is reason enough to take a closer look at mobile payment realizing partnerships.
In May 2006, Google activated a chorus of murmurs with its registration of the domain googlemastercard.com. Everybody was wondering to what extent that tie-up would change the online and offline payments market. Exactly five years later, Google Wallet hits the market – meaning customers with a Mastercard of Citibank are now able to pay with their Android smartphone Nexus S out of the mobile network Sprinter at partnering merchants situated in New York and San Francisco (e.g. Macy’s, Subways and Wallgreens). Just the last sentence makes obvious that the collaboration’s dash into the mobile payment future contains a bunch of restraints and immediately draws legal consequences: Paypal scents knowledge stealing since its former Manager Osama Bedier was headhunted by Google at this year’s beginning.
Abroad, within the United Kingdom, Samsung and Visa as well as Orange and Barclays also use the technology of Near Field Communication chips and special cash desk terminals to provide mobile payment possibilities. First mentioned use the outrageous media presence of 2012 Olympic Games in London to introduce their co-product. While Samsung is responsible for NFC hardware, it is Visa’s task to develop a corresponding mobile payment app. With regard to efficient marketing activities, all athletes will be provided with Samsung’s NFC-enabled phones and during the games all users will be able to pay with their smartphones at more than 60,000 locations within Greater London. Compared to Google’s approach, Samsung and Visa are already planning how to spread their service globally through different partnerships.
Indeed, Barclays and Orange just launched their Quick Tap contactless payment service at their bestselling handset (Samsung Tocco Lite) with which users are able to purchase low-value items (up to £15) in more than 50,000 shops throughout the UK. Choosing the low-priced headset for £60 is an interesting part of that collaboration since the majority of mobile payment services has been introduced for the most innovative smartphone series. But in this case sales numbers were more decisive.
These cases illustrate different approaches but all prove the importance of marketing partnerships regarding market entrance and correlated risk-sharing. As the infrastructure of Near Field Communication is still in the early stages of development, partnerships between the different enablers of mobile payment are the best way to entry the market, to observe product acceptation and to adjust deficits with a manageable extent of risks. Since product acceptation is the most critical point, the mentioned partnerships act jointly to address concerns about data protection and security.
Consequently, that kind of partnership is worthwhile for the enterprises, but until now customers only benefit from that service if they have the corresponding mobile carrier, handset, bank and retail store. The question arises, whether the installed technologies will soon fit to every brand, so users will be able to shop via mobile payment without any restraints – then mobile really changes our way to shop!
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