“Dude, you still got a wallet? That’s so obsolete!”

The future of payments may be controlled by quick response (QR) codes.

When I was a kid, I used to wear watch to see what’s the time. Then I got my first cel phone (Nokia!) and I didn’t feel the need to carry a watch anymore, since I could see the time from my phone that I carried with me everywhere. Today there are over 6 billion mobile users in the world. I wonder how many wallet users are there.

The technology is not anything new, as you might remember for example The Coin’s initiative. But now the smartphone giants, such as Samsung and Apple are catering to the advent of mobile payments by (reportedly) partnering with credit card companies, such as Visa, American Express, and Mastercard. Though, they are yet to confirm anything official. Seems like the mobile technology is gearing towards a cashless society.

Let me introduce four major models for mobile payments:

  1. The Premium transactional SMS payments. Their advantage is that since the transaction is carried through SMS (e.g. instead of an app), they work also with the more modest cel phones. (Yes, you can start using your good old Nokia’s again that you can run over a truck with without scattering them!)
  2. The second one is mobile billing, which is already getting very popular in some parts of Asia.
  3. Mobile web payments that include the online wallets, such as PayPal, Amazon Payments and Google Checkout.
  4. Lastly, we have the Near Field Communication (NFC) solutions that are suitable to, for example retail store checkouts.

Mobile payment is convenient for consumers. By providing mobile payment solutions, the merchants can, not only serve their customers better, but translate the new technology to a higher value for themselves: A mobile payment through NFC can significantly reduce the checkout time for the consumers, as they don’t have to stand in line for the register. Correspondingly, when the consumers embrace the self-checkout, the need of human resources at the cashiers could be significantly reduced. The question is, what happens to the retail employment when the mobile payment is reality?

Sources:

http://www.blackenterprise.com/technology/apple-partners-with-major-credit-card-companies-for-payment-system/

http://www.hongkiat.com/blog/mobile-billing-systems/

http://thenextweb.com/apps/2011/07/18/8-awesome-ways-to-pay-with-your-phone/

http://www.crimsonhexagon.com/business-intelligence/social-analytics/product-launch/analysis-of-mobile-payments-reveals-bullish-consumer-sentiment-part-1

https://onlycoin.com/

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About tonikarkkainen

I am Toni Karkkainen 28 years old marketing prospect from Finland. I am Soon to be graduated as a Master's of Science in Economics and Business Administration, from Lappeenranta University of Technology, Finland. I major in Strategy, Innovation and Sustainability and my two minors are of International Marketing Management and Strategic Management. I just finished my marketing minor in California State University in Fullerton, California and I am actively seeking for internship opportunities in the area. I am an innovation enthusiast and I have a natural curiosity in new trends and initiatives, especially when it comes to marketing and commerce in all of their respective channels. That is what I blog about is around these topics. I flag for open communication and sometimes I challenge to initiate discussion, thinking and exchange of ideas between people. I think a healthy self-critique is essential for the development of any individual or organization, including myself. I usually have lot of things to say, in good and in bad, but before this blog, I feel like I haven't had a proper forum to share and discuss about my thoughts. You are very welcome to comment and critique my posts, since they aren't necessarily "the absolute truths" about the topics, but rather my own opinions and thoughts on them. So be Brave! During my leisure time I go to gym, skate and surf, and I try to hang out with my friends always when I'm not busy with work and/or school. I am currently finishing up my studies in California State University where I have been studying for Strategic Internet Marketing, Retail Marketing Strategies, Marketing Information Technology and Consumer Behaviour. As mentioned, I'm in a search for a marketing internship, preferably in Los Angeles. Please see my LinkedIn and other social media platforms for my experience and contact information.
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