Mobile Money is The Next Big Thing (Forbes)   Leave a comment

Jack Dorsey, co-founder of Twitter.Image via Wiki

 

The latest excitement in the ever-growing payments industry is Square, an app that, once installed, transforms a simple smartphone into a credit or debit card terminal, providing small merchants with the ability to accept card payments at such unlikely places as roadside fruit huts and lemonade stands. This technology has been brought to us by Jack Dorsey, the man who fathered Twitter.

Senior analyst at Yankee Group Nick Holland says, “mobile money is the next big thing.” According to a forecast made by his tech consulting company, there should be a massive rise on the horizon in the number of global mobile transactions – from a mere $162 billion in 2010 to the more substantial sum of $984 billion in 2014.
In a nutshell, Square was designed to enable the easy transfer of funds from mobile device to mobile device after an inch-long credit card reader has been plugged into a smartphone, thus making it receptive to payments from debit and credit cards alike. The beauty of it all is that these paperless transactions can happen anywhere – in a field, on a beach, in a garage, on the street. “We want to take away the clutter and the paper, and get rid of the loyalty cards and get rid of the receipts,” claims Dorsey.
The potential appeal of Square to small merchants is obvious: there is no credit check and it takes just a few moments to set up an account. The funds from each transaction are deposited directly into the merchant’s bank account, minus a tiny 2.75% transaction fee. This is nothing compared to the costs and fees associated with a traditional terminal-dependent vendor account.
The ultimate success of Square depends, in large part, on whether or not merchants and consumers buy into the notion that making purchases via a mobile device is a secure and safe endeavor. With one out of six consumers falling victim to identity theft these days, according to an independent survey by Credit-Land.com, the jury is still out.

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Posted July 18, 2011 by ilanamelissagreene in Uncategorized

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