Mobile Advertising 2012

December 6, 2011 by
Filed under: Marketing Strategy 

2012 is not going to be the year that consumers say screw the coins and wallets when they leave home and just swipe their smartphones, it is going to be the year that major players like Google and MasterCard will actively roll out their cashless initiatives* around the world.

For consumers, the initial lure will be convenience, but eventually mobile payments will create an entirely new data-driven advertising of rewards, purchase history, deals and so on never seen before.See more here

These devices incorporate NFC (Near Field Communication), which allows for encrypted data exchange between two devices in close proximity to each other.

For instance: a reader located next to a retail cash register. Shoppers who have their credit card information stored in their NFC smartphones can pay for purchases by waving their smartphones near or tapping them on the reader, rather than using an actual credit card.

Just a few of the CASH-LESS initiatives to keep an eye on in 2012:

In October 2011

Google’s free, NFC-enabled mobile payment system Google Wallet became operational at a selection of retail chains across the US. Licensing MasterCard’s PayPass technology, shoppers simply tap their mobile device on special terminals at points-of-sale to pay instantly. In participating stores, they can also redeem special coupons, participate in sales promotions or gain loyalty points, simply by choosing to pay with Google Wallet.

In June 2011, US online payments processor PayPal demonstrated a mobile payments application for Android devices. Users install the app and activate the PayPal widget, and can then request to send or receive funds from another individual with a smartphone and PayPal account. Using NFC, the two users can then hold their devices together in order to instantly transfer funds. Also read article on Local Marketing.

Square is an electronic payments service which enables users to accept credit card payments by using a card-reading portable device connected to their iPhone, iPad or Android device. Both the Square card-reader and app are free, although there is a 2.75% charge for each payment made. Once the system has been set up, users can accept payments immediately.

In November 2011, Richard Branson and Visa became investors in the venture. In the same month, Square updated the app, allowing for a completely hands-free payment experience by simply saying your name.
Launched in Sweden in June 2011, iZettle is a device that enables consumers to accept credit card payments while on the go. The portable chip and pin reader plugs into iPhones or iPads and uses an iZettle app, meaning that card transactions can take place instantly. Bills can also be paid or money transferred using the device. There’s a facility to tag transactions with images, notes or location data, which users can post to Facebook and Twitter to share their purchases with friends.

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