If the masses of consumers don't move to mobile payments, it won't because they can't. The number of mobile phones that can be used for payments are increasing exponentially along with the terminals in stores that can accept those payments. Yesterday's introduction of Android Pay, Google's latest mobile payment approach, puts down one of the last needed major pieces of the mobile payment puzzle. As an aside, one of the niftier features of Android Pay is its linkage with loyalty cards.
Though gaining some traction in numerous areas, mobile payment systems are still on somewhat of a climb on the way to mass acceptance. While consumers deciding to use a mobile device to pay is part of the issue, it's not the only one. A new report identifies the three limitations initially delaying the dollar volume associated with systems such as Apple Pay.
Mobile payments and mass transit can be a nice match. One of the earlier uses of mobile in transportation was showing transportation routes and schedules. Those efforts were pretty much a mobile version of the Web, which was pretty much a digital version of paper.
While mobile continues to grow across the board, mobile commerce is by far the prime engine of growth. More than half of the $41 billion invested in mobile in the last 12 months went to mobile commerce related sectors, according to a new report. Even as mobile advertising readies to leapfrog in-app purchases in a few years to move from third to second in the overall revenue stream, commerce is number one by a lot, according to Digi-Capital.
Targeting customers along their mobile path to purchase regularly involves various approaches and attempts at personalization. The analysis and use of data to create better engagement is a common approach, as mentioned multiple times during the MediaPost IoT: Advertising at Internet Week conference earlier this week. I recently came across a quite interesting and insightful viewpoint about the evolution of the path to personalization with a set of discrete steps.
There still could be even more interesting twists and turns along the road to mobile commerce. During a discussion around wearable devices at the MediaPost IoT: Advertising at Internet Week conference this week, we heard some insightful and relevant concepts from an executive of Jawbone, the well-known maker of fitness devices, among other things. One of the ideas relates to time, as in the move to interacting with consumers in very real time.
It's good to see that discussions around beacons are moving well beyond the experimenting and trial phases and marketers are starting to learn some of the ins and outs of beaconing. One of the more interesting questions posed during the MediaPost IoT: Beacons at Internet Week conference yesterday was what unexpected things have brands and agencies found out, now that beacons have been deployed.
The Internet of Things (IoT) is going to impact pretty much everything. As more devices and physical objects become connected to each other, the implications are huge. Over the next decade, the Internet of Things (IoT) will generate $8 trillion in value, according to a report I wrote about here last month (Mobile Commerce Meets the Internet of Things). Some of the commerce implications include mobile payments, in-store shopper guidance through beacons and other sensors and more precise customer targeting for relevant messaging.
When it comes to getting the best price, in-store shoppers may not be turning to their phones as much as they used to. Countless studies continue to show that mobile devices are used throughout the entire shopping journey. This was again well-documented in the annual mobile influence tracking study by Deloitte Digital. But a tidbit inside that report noted that consumers in stores are 30% less likely to perform price comparisons via their devices than just a year ago.
There's mobile commerce technology and then there are consumer habits and behaviors. For the longest time, proponents of Near Field Communication (NFC) technology have been trying to bridge that gap. Many were optimistic when Apple finally adopted NFC in its latest iPhone, tapping into the technology for Apple Pay mobile payments. The obvious challenge, of course, is that for NFC in phones to work for payments at checkout, the technology at checkout has to be able