Mobile Payments an Enabler

It is possible there are some potential entities that really see an opportunity to create a new transaction processing (settlements) system to challenge today's settlement networks. That's an ambitious and risky sort of thought, but a thought we suspect most innovators do not harbor. Instead, there are lots of other businesses that can build on mobile payments, without trying to displace existing networks.

Square already has succeeded in adding value on the terminal end of the ecosystem, essentially extending point of sale terminal capabilities to retailers that could not afford it before.

Google is aiming at the other obvious big target: advertising. The coming Google Wallet would allow Google to offer retailers more data about their customers and help them target ads and discount offers at mobile-device users near their stores.

Appending real-world purchase information to its treasure trove of online behavioral data would allow Google to drive significant transactional and advertising revenues.

Mobile Payments Enter A Disruptive Phase