Money Goes Mobile
The mobile payment industry has been making big moves lately, and it looks like consumers might finally be warming up to the idea of paying for things with their cell phones.
The transition from carrying big, clunky wallets to a payment-enabled mobile device is beginning to revolutionize how consumers shop.
Of course, there is no set standard for mobile payments technology quite yet.
Isis and Google are both working on their versions of the mobile wallet using Near Field Communications (NFC) technology, and PayPal is working on a cloud-based mobile payment initiative. Companies like Square and Intuit also help small businesses process payments via their mobile phones, and there are QR code-based payments in the marketplace, like LevelUp, where individuals are assigned their own unique QR code to pay with. In addition, companies like card.io and Jumio allow consumers to make payments by scanning the credit card with your smartphone’s camera.
With that being said, the future looks bright for companies in the mobile payment industry. Here’s why:
- Mobile payments in 2011 topped $558 million in investment, up from $276 million in 2010, according to research firm Rutberg & Company.
- eMarketer projects that 37.5 million U.S. consumers ages 14 and up will make at least one purchase on their mobile phones in 2012.
- eBay predicts it will do $8 billion in mobile gross merchandise volume and $7 billion in mobile total payment volume in 2012.
- PayPal exceeded expectations for 2011, reaching $4 billion in mobile payment volume, and with more than 17 million customers regularly making a purchase through their mobile phone.
- PayPal is also expanding its new mobile wallet trial services to more than 2,000 Home Depot stores across the U.S., allowing consumers to pay for items at checkout via mobile device or through PayPal and exposing thousands of people to mobile payment technology.
The merge of mobile and money has made huge progress in the past year, which means retailers who embrace it will have a leg up on their competitors.
How will mobile commerce benefit the retailers bottom line?
Mobile payments add value and convenience to the consumer. They will also facilitate the implementation of deals and offers through text messaging or apps, which will ultimately drive customer loyalty.
The problem, however, is that consumers still trust their credit card companies and banks to drive mobile payments.
However, KPMG’s fifth annual Consumers and Convergence survey has found that 23% of US consumers are now “very willing” to use their mobile phones as a wallet, and a study by Javelin Strategy & Research and PaymentOne found that 4 out of 5 consumers would spend more online if offered an easier and more secure way to pay.
Without a doubt, mobile is a very personalized channel that businesses can use to directly interact with their customers, and mobile payments help enhance the in-store experience for consumers.
As consumer attitudes about mobile payments start shifting, we will be seeing more and more people ditching their wallets.
Big Expectations for Mobile this Holiday Season
The chaos of Thanksgiving weekend shopping has calmed down a bit, but it doesn’t look like mobile shopping is going to slow down quite just yet.
Black Friday and Cyber Monday yielded a high volume of engagement in mobile commerce among consumers, and its popularity and usage is expected to soar even higher as the holiday season continues.
On Black Friday and Cyber Monday, many large retailers such as Amazon, Best Buy, Target and Walmart offered staggering deals to encourage customers to shop online, which in turn produced an increase in purchases made on mobile devices.
A study by Motricity showed that 70% of mobile device-shoppers made more purchases from their smartphone in 2011 than they did in 2010.
We’ve said it before, but this may prove to be the biggest year for mobile commerce thus far.
Quick Facts:
- Mobile platforms were responsible for 14.3% of all online shopping traffic on Black Friday, according to IBM.
- Black Friday and Thanksgiving Day brought record mobile engagement for PayPal, with over 500% increases in global mobile payment volume compared to 2010.
- On Black Friday, mobile shopping was led by Apple, with the iPhone and iPad ranking one and two for consumers shopping on mobile devices, according to IBM.
- By 3PM E.S.T on Cyber Monday, mobile users had accounted for 7.7% of all online shoppers, which more than tripled last year’s numbers, according to Dow Jones.
What’s Next?
If you’re a brand, small business, or large retailer, take advantage of all the mobile shoppers. Shoppers are going to continue looking for deals and discounts into December as they’re finishing up their holiday shopping, so make sure to leverage mobile marketing to reach those consumers by doing the following:
- Create a mobile-friendly website for shoppers surfing the Web for deals on their mobile devices.
- Issue mobile coupons through text messaging to target the consumers looking for deep discounts.
- Implement QR codes at the point-of-sale to encourage customer interaction.
- Consider the different ways in which consumers interact on their mobile devices, including peak days of the week and times of day that they browse the Web, send text messages, check their social networking sites, look for coupons, etc.
Retailers, businesses, and brands— gear up for the rest of the holiday season. Shoppers are going to be active on their mobile devices, so take advantage of users’ increased mobile engagement during the holidays by creating an integrated campaign that reinforces your message, raises awareness, and creates excitement so that consumers will want to engage with you.
QR Code Marketing: 5 Tips for a Successful Campaign
Laura Marriott, CEO of NeoMedia, shares her expertise in mobile marketing by providing a few pointers on how businesses should implement QR codes.
Mobile barcodes are turning up everywhere – buses, magazines, television, bar coasters. According to recent research from comScore, 14 million U.S. mobile phone users scanned QR or barcodes in June alone, mostly via newspapers, magazines and product packaging, both at home and in-store. My company’s own data reveals that barcodes that offer access to a discount or coupon or that allow the consumer to learn more about a product or service are the most popular.
Given that mobile barcodes are finally cracking the mainstream, they have enormous potential to present brands with brilliant results. Here are five mobile barcode best practices to help ensure a successful campaign.
1. Be Everywhere
Mobile barcodes should be incorporated into all digital and traditional media so the consumer has 360-degree exposure to the mobile marketing campaign. This will also ensure that consumer experience, dialogue and interactivity are at the heart of the campaign and not simply an afterthought.
2. Drive Value and Make it Easy
Giveaways, discounts, free tickets and exclusive access will compel consumers to interact with and scan your code. If your code simply offers the customer a chance to view a TV advertisement or link to a website, it’s best to try again. Scanning a barcode should provide the consumer with a brand experience that is exclusive, dynamic and interactive.
Take into account where a mobile barcode is located on the ad. Consumers must be able to find it easily and scan it quickly. For outdoor ads, place the code at eye or arm-level. In a print ad, the barcode should not fall over a fold as this will hamper scanning. Be sure to leave some white space around the mobile barcode, and use a minimum of 1 x 1-inch print specification. For TV or cinema, the code should to remain onscreen long enough for the viewer to launch the scanning application and scan the code.
3. Keep it Simple
Branded or custom QR codes are certainly getting some buzz, but it’s also important to create a code everyone can recognize. Producing your code in simple black and white checkered format will increase the number of phones and code readers that can scan it. Also, ensure you use global, open standards (i.e. Datamatrix) to maximize universal customer reach and impact.
4. Build Customer Affinity
Remember that the consumer who has just scanned your code is on the move. She will be viewing the brand content on a mobile screen and, therefore, expects instant results. Make sure the barcode links through to a mobile-enabled site rather a PC-designed site. Remember that “dead links” (codes that go nowhere or deliver the wrong information) are the equivalent of a slammed door — the consumer will not try again.
Matthias Galica, the CEO of ShareSquare, provides tips for marketers and brands using QR codes, and specifically emphasizes testing a barcode for functionality across a variety of devices and scanner applications before launching. It’s important, especially because the consumers that scan codes are likely tech-savvy and vocal — the kind of consumers you want on your side.
5. Account for Objectives and Analytics
Boost sales, increase customer engagement, build brand loyalty, educate your audience. Whatever the campaign objective, be sure to define its goals before integrating a mobile barcode. Consider monitoring the campaign via a barcode management platform. Your business will be able to leverage the provider’s expertise, better assess your campaign effectiveness and evaluate its real-time success through analytics.
Original article found at: http://mashable.com/2011/08/19/qr-code-tips/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+mashable%2Fbusiness+%28Mashable+%C2%BB+Business+and+Marketing%29


