The Mobile Wallet Market Hots Up

The mobile wallet concept or the option of paying through your mobile has not taken the World by storm as yet. At this stage, it remains a niche market still discovering the best way to attract customers. In-spite of not being as huge as the credit card market, the transaction volume numbers are pretty impressive.

Various merchants, banks, service providers, technology companies, handset makers are all involved in the process of a mobile payment, which automatically brings a huge user base to tap into. The challenges that are stalling the industry are to be put forward in the upcoming mobile congress in Barcelona, Spain. The biggies that are set to make waves are Google Visa and eBay backed by PayPal. There are other small newbies such as Boku that has made an entry recently and has tied up with MasterCard.

AT&T Mobility, T-Mobile USA and Verizon Wireless are all coming together to form New-York based Isis, which is set to spar with Google Wallet to rule the mobile payment market. To its credit Isis has bought major players like Chase, Capital One and Barclaycard on board for their customers to place their credit, debit and prepaid cards into the Isis Mobile Wallet. The service is set to roll out in the middle of 2012. Their plan to launch with a bang has been pretty apparent when they tied-up with U.S. payment networks: Visa, MasterCard, Discover and American Express in July, 2011.

The Isis wallet works in such a way that all participating merchant and bank Credit and Debit card information is store digitally in a wallet. The information is secure with the merchants, banks and the customers and not with Isis directly. The wallet can also store coupon information, points and various discount offers.

Near field communication (NFC) is the technology that can help share information between mobiles with a touch, it is touted as the game-changer in the mobile payment market. However PayPal doesn’t quite think the same way. PayPal’s version of a mobile wallet is still a physical card which contains all information stored through a cloud. PayPal did $4 billion business in the mobile payment segment in 2011 and hopes to increase it to $7 billion in 2012. Warring service providers in a developing sector can mean only thing- plenty of options for the customer.

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