Increase in Mobile Payment Options Adds to the Confusion
We’ve been hearing about advancements in the realm of mobile payment technology for years now, and while it’s still widely believed that mobile technology is the way of the future, for the time being it’s a bit of a mess.
With nearly every credit card and online payment processing company developing its own payment method, you’d think the demand for countless mobile payment options was through the roof. But, without some sort of uniformity, especially in regulations and security, anyone investing in mobile payment technology should expect a long road to global acceptance.
CIO.com reports:
Because the regulatory environment is still in its early stages, new entrants may take shortcuts in developing their apps, making security breaches more likely, other panelists said. And when there is a security breach or fraudulent activity, consumers won't know where to turn to for help—their bank, the carrier, or the app developer.
Whether it’s the Square and PayPal's great dongle race, Google Wallet vs. Apple Passbook, or American Express’ new pay-by-tweet experiment, everyone is trying to get established in the mobile payment arena—ready for whenever it happens to get off the ground.
With security as the consumers' primary concern, Visa may be on the right path with the news that they’re not only debuting a new partnership with merchants, which many have done before them, but with software developers as well.
TechCrunch recently reported Visa’s interest “to be part of the development process of new technologies.” Visa doesn't want to just be in the mix of financial institutions capable of processing mobile payments; they also want “to work with developers to make sure they are developing secure products.”
MasterCard has recognized the mess that’s been created by so many players in the game, and while they’re joining the list, like Visa they’re using a seemingly responsible and problem solving mentality. MasterPass, as it’s being called, is designed “to bring together all the different forms of payments that people use to pay for things…to give retailers a one multi-tool option for how to integrate mobile payments.”
Exhausted with the number of payment methods their customers may present, retailers could be most comfortable with the multi-tool strategy—if this option is ultimately secure.
Proof that mobile payments aren’t just for the big boys, even the Girl Scouts are rolling out their own dongle-based payment method for their famous cookies.
Of course, the ultimate convenience for their customers would be to make the cookies available year round.
