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Big companies invest in mobile payments

Jan 24, 2014 Dave King

It is becoming more clear that mobile payments are the future, with many of the country's biggest companies investing in the technology.

Amazon recently acquired the mobile payments startup GoPago, according to Tech Crunch. The deal included of the payments technology and the engineering/product team of GoPago, but none of the existing point of sale business and merchant relationships.

PayPal has also been getting into the electronic payments game with its recent purchase of StackMob, according to Forbes. The deal will bring 18 of the app developer's engineers to PayPal headquarters in San Jose.

StackMob's CEO Ty Amell said the deal will be positive for the company moving forward.

"By joining PayPal, the StackMob team will maintain its focus on developers and extending innovative mobile technologies that aim to allow consumers to access the rich capabilities of the PayPal global network," Amell said. "We believe that our work at PayPal will make it easier for developers to create seamless payment solutions that span online, mobile and in-store experiences."

Businesses are smart to invest in mobile payments, as this technology is expected to revolutionize how transactions are completed in the future. According to the ATM Marketplace, one of the biggest advantages of electronic payments is convenience for the consumer. By offering this technology, businesses could attract more customers due to the ease of completing a transaction.

Mobile payment systems also allow businesses to improve targeted marketing. With better data on what each consumer purchases, companies can better send out promotions and coupons. For example, if an apparel store finds that a customer buys a lot of jeans, it can alert that person when jeans are on sale.