Mobile wallets take one large step forward
Arguably the greatest impediment to customers using mobile wallets has been the technology's relative inconvenience. At the point of sale, both retailers and shoppers alike want a fast, streamlined experience that lets the consumer swiftly slip out the door and for the register clerk to move onto the next person. For years, this has meant using a credit card, as it can quickly be swiped to complete a transaction.
While PayPal already moved toward its app becoming a mobile wallet earlier this month, it has recently enhanced its features by creating the PayPal Beacon, according to USA Today. Previously, mobile wallets often used NFC technology that was not always reliable or easy to use. Meanwhile, the Beacon uses a phone's Bluetooth technology to process payments.
The three-inch high device plugs into a wall socket and can authenticate PayPal app users automatically while they are in a store, USA Today reported. Rather than needing a complicated technology dedicated to processing payments, merchants using Beacon can run a mobile wallet payment through their retail POS software. The technology will also be open to third-party developers so that they can create shopping apps.
"This is the one thing I'm most excited to launch since joining PayPal," said PayPal President David Marcus, according to the source. "This is the first thing I think that is better than swiping a credit card."
Initially, only a select few brands will be able to use the devices, while a major roll-out is expected for 2014, USA Today noted.
Apple also joins the mobile payment movement
Just as PayPal announced its Bluetooth-based mobile wallet, Apple has done the same. Internet Retailer reported that Apple will be releasing the iBeacon, which also uses Bluetooth technology to process mobile payments. Much like PayPal, Apple already has a robust database of payment information due to iTunes. This could enable the tech giant to break into the mobile payment market in a way that other companies have thus far had difficulty with.
Beyond just the convenience issue, Internet Retailer added that energy use has been a barrier to mobile wallets. While Bluetooth technology traditionally required considerable battery power, Bluetooth Low Energy options, as can be found on later versions of the iPhone, minimize this matter. Regardless, retailers should remain aware of the way that mobile may transform POS in the near future.
