Jun 25, 2013 Dave King
Consumers are increasingly turning to mobile phones and ACH cards for payments, so businesses might want to think about adopting these technologies to keep up with the competition.
One way that banks and other organizations can enhance mobile payment systems is through the use of big data. For example, using customer data to provide targeted and timely coupon offers, which encourage consumers to use mobile payments, could be beneficial for organizations, according to Banktech.com.
In fact, the success of mobile payment adoption could rely on the ability to push coupon offers to consumers. A recent survey from NGDATA and Clear2Pay found that 80 percent of bankers said this technology is more appealing to consumers if coupons are offered.
"The data around the payment is more important to us than moving off the card to a chip," Robert Zeigler, the CEO of Corduro, told the source. "Data gives the merchant the ability to know [the consumer], and tune their relationship to [the consumer]."
To help improve the consumer experience with mobile payments, some companies have begun using social media data to offer useful coupons. By bringing customers into a social community, companies are able to fuel their consumer data pool, which allows them to get as much information as possible.
Sudeep Kanjilal of Mahindra Satyam provided an example as to how big data is able to help companies provide targeted coupons.
"No one has all of the data and no one wants to share their data," Kanjilal said. "Analytics can figure out that when I go to San Francisco I usually go to a certain cafe. The telco knows I landed in San Francisco, and the bank knows what I usually get when I go to that cafe. That data combined can lead to a relevant offer."
NFC devices to surge in popularity by 2017
One of the technologies that make mobile payments possible is NFC smartphones, which are expected to grow in popularity significantly in the next four years.
According to a new report from Berg Insight, NFC devices are expected to hit 1 billion worldwide by 2017, Mobile Payments Today noted. This growth will be in large part due to the adoption of the technology by cellphone vendors, as nine of the top 10 will offer NFC-enabled devices.
Despite the boost in NFC devices, the full scope of the technology might not be available as developers attempt to familiarize themselves with it.
"It is the sum of many possible use cases for NFC rather than one single killer application that make the technology compelling for smartphone vendors already today," Andre Malm, senior analyst at Berg Insight told the source. "Once developers gain experience with NFC and get access to a larger installed base of compatible handsets, we can also expect to see entirely new use cases not yet imagined."
As mobile payment systems become more popular, businesses and financial institutions would be wise to utilize this technology as consumers enjoy the convenience of being able to use their smartphones to make payments.