University of La Verne
La Verne, California
The Age of the Mobile Wallet
A Paper Submitted in Partial Fulfillment of the Requirements for
BUS500F: Business Marketing
College of Business and Public Management
Department of Marketing
Today's digital technology is constantly evolving. A significant and popular financial trend that has taken over society is the use of Mobile Wallets. This technology allows you to pay for a product or service, using an application from your mobile phone at a Near Field Communication (NFC) reader. When the phone is held to the NFC, it will vibrate or ...view middle of the document...
This year the much anticipated Apple Pay competitor, CurrentC was to launch nationally, but it seems they are only releasing a Beta version in Ohio for the time being.
Most banks have hopped on board with introducing their own Mobile Wallet systems or have partnered with Apple Pay.
Impact on Marketing:
This trend will have a significant impact on the future of marketing. Many of these Mobile Wallet services offer same day or real time payments, making it faster and easier to obtain products and services for consumers. Also, producers and suppliers have a new way of accepting and providing payment, no more snail mail. According to Forbes.com, "Worldwide mobile payment transaction volume was around $235.4 billion in 2013. It was estimated to be $325 billion in 2014 and is expected to grow up to $717 billion by 2017. The mobile payment market is the U.S. alone was around $50 billion in 2014." This market will continue to grow until this technology becomes obsolete and the next best thing comes along.
In my opinion, if companies fail to participate in the Mobile Wallet phenomenon, they will significantly fall behind and lose out on many opportunities and financial profit. This will force producers and suppliers to partner with Mobile Wallet providers if they want to stay in the game.
If suppliers and producers partner with Mobile Wallet services such as Apple Pay, they may be allowed to use the Apple Pay logo. Which is free advertising for Apple and very appealing to the customer. Since Apple has a massive following of loyal customers, the Apple logo will certainly bring growth and attention to a company. And on the other hand, consumers that dislike Apple products, may take their business elsewhere.
Mobile Wallet providers are offering customer loyalty programs. A point system in which you can redeem points for goods and services, a little added bonus to entice the consumer.
Who is Affected:
Consumers will be effected by the implementation of the Mobile Wallet. The aftermath of the 2013 Target breach has left everyone a little on edge about identity and financial fraud. Skeptics have many concerns about identity fraud when making a purchase through these Mobile Wallets. Many credit card companies and major banks have started to offer the EMV "chip and pin" cards, that have a four digit pin and generate a one time security code. The EMV cards are widely used in the U.K. and seem to have better success in warding off hackers than regular magnetic stripe cards with physical purchases. Online purchases with the EMV card do not ask for the pin and one time security code, leaving the customer open to an identity attack. It is much more difficult to manufacture a microchip than a magnetic stripe on a credit card. However, in the world of identity theft, where there is a will, there is a way.
Dustin Pellegrini from IdentityProtection.com stated, "Fraudsters have begun to exploit the Apply Pay...