Stop me if you’ve heard this one: Your phone is going to become your wallet. Yes, we’ve heard that for the last five to ten years but MobilePay USA is trying to tackle this issue using existing hardware and software and I think it has a real chance to succeed.
Unlike some of the other mobile payment players in this space like Bling Nation, MobilePay doesn’t require the vendors or customers to buy new hardware. The mobile payment app will connect to the company’s cloud service and it will give you access to multiple payment options, as well as discount and group cards.
Additionally, this mobile payment system does not store your actual credit card numbers on the device, which could give some people peace of mind. The Apple iPhone app will debut soon in a closed beta but MobilePay USA will eventually come to all the smartphone platforms.
How does it work? Well, you enter your credit card information on its website and you pop open the mobile payment app when you are in a store which accepts the service. You tell the cashier that you’ll pay by phone, hit a few buttons and then the transaction is made and a receipt can be e-mailed to you. The merchants have to have an account with MobilePay.
Some believe that Near-Field Communication technology will really spur mobile payment but MobilePay said it will cost billions to get enough devices out there which have NFC capabilities.
While speaking with the company, it admitted that there will be some issues with getting the mass market to be truly comfortable with mobile payment but the retailers are already on board, particularly because of the cost savings MobilePay offers compared to the others in this space. The demonstration I saw looked good but mobile payment demos always look good. I’ll be anxious to see how widely this is adopted.
What do you think, readers?
[Update]
Now with HD video!
[Via MobilePay]