The End of Wallets As We Know It?
One of the most interesting emerging spaces in the
Technology sphere is the digital wallet space. The digital wallet space is
fascinating for multiple reasons, to begin with no clear winner has emerged yet
and the success of digital wallets in the future has the potential to change
the payment process entirely. If any or even some of these new mobile payment
applications are successful the death of wallets as we know them will indeed
occur. However, the success of these phone applications is not without
significant hurdles. To begin with, shoppers must be able to clearly identify
the benefits of ditching their previous methods in favor of these new mobile
payment methods. Secondly, everyone from the banks providing the credit cards,
to the telephone companies, to the retailers, who will be using the mobile
payment technology, have different opinions on how to effectively proceed in
this space. Until standards are set and agreed upon among all of these
different players it will be difficult for Square or any of their competitors
to become ubiquitous in the mobile payment space. Furthermore, while no one can
deny the innovativeness of Jack Dorsey’s Square products, he does not have the built
in customer base and scale that other companies such as, Paypal and Mastercard, who have recently
tried to enter the digital wallet space, have. One thing’s for sure, the next
few years are going to be an intensely interesting and critical time period for
the mobile payment space. I personally am looking forward to seeing if
Square can differentiate itself enough from the seemingly endless competition
and come out on top.
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