According to the Wall Street Journal (WSJ), a number of big retailers (Wal-Mart and Target included) are working on creating a mobile payment system. Seemingly, the current mobile payments systems that exist are not what these companies are looking for, and what can be done what the mobile payment system you’re looking for doesn’t exist yet? Why, you create one, of course!
Details are relatively scarce at the moment, but you can expect a number of larger retailers to roll out a completely customized mobile payment system within the next month or so (possibly longer). What will this system look like, how will it work, and what brands are part of the new development? Details on all of these questions are listed below, but the biggest question is: why aren’t these giant retailers using a mobile payment system that already exists? The answer is really quite simple.
A Lack of Trust
As the WSJ reports, the retailers that are part of the emerging payment system group do not trust the current mobile payment applications. Currently, mobile payments are a relatively new thing, and those retailers that are set to take on the likes of Google and other payment system developers aren’t feeling confident in the security of existing systems. If you’re wondering which retailers will be a part of this developing mobile payment system, the WSJ has stated that large fast food retailers, drugstores, big box companies, and other large retailers have all joined the ranks. In short, current mobile payment developers might want to watch out.
It seems like all of the brands that are joining forces with Wal-Mart and Target are big indeed. In fact, the same WSJ article states that $1.3 trillion has already been sunk into the new venture. Needless to say, this group of retailers (currently nameless, though I’m sure a name will emerge sooner or later) is a force to be reckoned with. This all makes a great deal of sense too, since mobile payments are one of the latest emerging markets to watch out for – why shouldn’t some of the biggest retailers in the world get a slice of this lucrative pie?
Even though details of this new payment system are scarce, consumers and those within the mobile payment industry alike are expecting great things to come from this newly formed retail group. On the consumer side of things, simply tapping a phone against a payment system is a great and simple way to pay for items. Then again, this could lead to further consumer credit card debt, since most of these systems are linked to consumer credit cards, but I digress.
It will be interesting, indeed, to see how the mobile payment industry spreads out over the next year or so. If you are an avid Wal-Mart, Target, or other large retail shopper, paying for those items quickly might be something to look forward to. There’s also the possibility that consumers will be able to choose from a mobile payment provider in the future, and competition is always a good thing for consumers.