Mobile payments is not a new concept to the telecoms community, however the entry of Apple into the arena with ‘Apple Pay’ earlier this year has intensified the fight for mobile payments supremacy. The news that McDonalds will be partnering with Apple to accept payments through Apple Pay in all its US stores has set a precedent for organisations partnering with individual payment providers as opposed to adopting a more pluralistic approach.
In response to Apple’s announcement, PayPal have now announced a new partnership with Burger King in the US. PayPal’s deal will offer users the ability to pay for their food through the Burger King app. In addition to this the app will offer nutritional information and advice as well as offer exclusive deals and discounts in a bid to win increased market share for both Burger King and PayPal.
Partnering with retailers is a popular option for mobile payment providers. It allows retailers to offer an improved customer experience and increased profitability whilst increasing revenues for the payment provider. However for mobile operators looking to move into the market, it could be a big stumbling block. Their lack of existing relationships with retailers when compared with the likes of PayPal could prove their downfall.
With the mobile payments market expected to be worth $670 billion by 2015 it is understandable that so many companies are keen to open mobile payments as a new revenue stream. However, with trusted financial brands such as PayPal and Visa already in the market place, mobile operators might have a hard time gaining a foothold in the market. Despite the huge rewards on offer, concerns about security, regulatory obligations and increasing levels of competition could put a number of telecoms operators off entering mobile payments at all.
Source: Vine 15