It has often been stated that mobile payments are a solution searching for a problem. Indeed, what is the big deal about pulling a card out of your wallet vs. pulling your phone out of your pocket, to transact? Where is the value to drive the mobile payment other than convenience?Modo thinks it has to do with offers and they have integrated a framework for redeeming merchant offers with their payments platform. This makes sense to me. If I had to choose between paying with my Visa card in my wallet or my Visa on my phone that also happens to give me a big discount on the purchase I think the choice is obvious. So right out of the gate, ModoPayments has tied a distinct consumer value proposition to their service in order to drive usage they hope. Google Wallet has a similar concept. It will definitely be a motivator.The platform makes it possible to, in the words of Bruce, “generate a mobile payment transaction at any location that accepts either Visa or MasterCard with no change to POS and no change to the phone that uses ModoPayments.” It can exist as an SMS or native app solution; customers can choose either touchpoint.
Exploring the Future of Money, Banking and Philanthropy
- How mobile phones are making cash obsolete in Africa – The Globe and Mail
- Mobile Payments: Why You Can’t Live Without Them – Forbes
- Read Books, Earn Points: A Publisher Unveils a Rewards Program | TIME.com
- The New Credit-Card Rewards Programs – WSJ.com
- Big U.S. Retailers Join Forces to Develop Mobile Wallet – WSJ.com