4 Points to Consider for Mobile Payment Solutions

As the Web becomes more social everyday, people are using mobile to access their social accounts. The fast-paced world of social business is becoming innovative as well. One of the areas aside from Social CRM and SMM which is deemed essential for B2C’s to succeed is e-commerce. As customers become more accustomed in purchasing a product while engaging in social media activities, the notion of mobile comes into mind.

As Google launched the whole SoLoMo initiative, brands and businesses are gradually realizing the influence of social media for a person to make a purchase. But in order to capture a purchase, businesses should keep in mind that a decent mobile site or app can’t do the job, a set of feasible mobile payment solutions will convert users into consumers.

Here are some points in Business Insider’s special report about mobile payment solutions:

Carrier billing. Where the consumer pays by text message and the charge is added to their phone bill. This is great for a variety of specific use cases (reaching the unbanked, especially teenagers; ecommerce and gaming), but is crimped by carrier fees and control.

Near-Field Communications (NFC). Where the consumer can pay at the point of sale by waving his phone in front of a terminal. NFC has been overhyped: it’s not more convenient than cash or credit, and the many companies who want a piece of NFC are canceling each other’s efforts out.

Apps. Where the consumer uses an app on his smartphone to pay, typically by scanning a barcode at the register. We believe this is especially useful for specific companies and retailers to offer, as it allows them to offer loyalty rewards and discounts on top of payments.

Card Readers. Pioneered by startup Square, with recent entries from eBay (PayPal), Intuit, and Verifone, these solutions allow merchants to take payments by plugging a card reader into a smartphone or tablet. They’re very convenient (swiping a credit card is already ingrained consumer behavior) and piggyback on the existing credit card network. Card reader companies can offer value-added services on top of the payments experience to spur adoption by merchants and consumers.