In the Online / mobile payment, there appears to be cut-throat competition among different providers which is expected to accelerate in the following period.
As it is assumed that with the expansion of payments with mobile phones, the makers of payment terminals will also compete for:
- Contracts to replace current point-of-sale terminals
- Create new hardware for stores
- Train stations
- Taxi cabs
- Doctor’s offices
- Any other place with a tap-to-pay systems
As online payment, a worth-noting fact of information era, is becoming, rather, vital for the online services’ users, some information is presented about the major players of the field:
The ISIS (Headed by CEO Michael Abbott) claims that its mobile wallet will, fundamentally, change the methods/habits to shop, pay and save and will, ultimately, eliminate:
- Need to carry cash
- Credit and debit cards
- Reward cards
- Transit passes,
ISIS has entered into:
- Joint venture with AT&T
- Verizon Wireless
- Partnerships with
- American Express
It is, now, planning to start mobile payment testing in Austin, Texas and Salt Lake City in 2012.
Sprint’s Nexus S 4G Android Smartphone
It is the only alone operator, which is operating outside ISIS and is the first to work for digital purchases and peer-to-peer payments, through:
- Google Wallet
- American Express’ Serve mobile-payment application
Google Wallet, the first mobile payment move by Google, is an app and payment system that combines deals and discounts with NFC and digital payments.
- Google Wallet will work with MasterCard’s PayPass system
- On Sprint’s Samsung Nexus S 4G
- Citi and FirstData are also partners
Google Wallet is, currently, going through trial in San Francisco and New York and its launch is expected ‘this summer’.
Square is co-founded in 2009 by Jack Dorsey (also co-founder of Twitter) and lets small business owners or individuals swipe credit cards through the Square attachment to accept payments.
Its prominent features include:
- An app
- Small ‘cubelike’ credit card-reading attachment
- Can be slipped into the 3.5mm headset jack of mobile phones and tablets
The app also manages peer-to-peer transactions in competition with PayPal. Square has also been pitched as an alternative to NFC.
It is eBay-owned pioneer of peer-to-peer payments online with several apps for mobile phones and APIs for making them add PayPal modules to their created software.
Nokia and Samsung are the pioneers in the U.S. market (with Nokia starting in 2006 with NFC) while the Microsoft’s Windows Phones will also be NFC-supported and enabled.
Credit /debit card brands and banks
They are closely interlinked with each other, since long, regarding the mobile payments. Their links with each other are:
- Visa – Square
- American Express – Sprint
- MasterCard – Gogle
- Citi – Google.
Its arrival in the market was against Square.