The Federal Reserve Bank of Boston has released a report based on the recent Mobile Payments Industry Workgroup (MPIW) meeting to discuss (1) different wallet platforms; (2) how card networks and other payment service providers manage risks associated with converging digital and mobile channels; and (3) merchant strategies around building a mobile payment and shopping experience. [Read more…]
Starbucks created a lot of buzz about mobile payments when the company release it’s popular mobile payment app in 2011, and indeed Starbucks was on the vanguard of consumer retail mobile payments. And by most measures the Starbucks app should be considered a success. CEO Howard Schultz told investors during a recent earnings call: “Today in the U.S. alone over 13 million customers are actively using our mobile apps and we’re now averaging over 7 million mobile transactions in our stores each week, representing roughly 16% of total tender, more than any other bricks and mortar retailer in the marketplace.” That’s impressive.
The eBay payment unit plans to acquire Paydiant, a payments startup that licenses a technology platform used by big retail chains to create their own branded mobile wallet apps. Multiple sources said PayPal will pay around $280 million for the Wellesley, Mass.-based startup. PayPal declined to comment on the price.
EBay Inc.’s PayPal, the digital-payments unit being spun off from the Internet marketplace later this year, agreed to buy startup Paydiant Inc. to broaden its mobile offerings for merchants.
Paydiant, founded in 2010 and based near Boston, helps retailers such as Subway and Harris Teeter Supermarkets Inc. develop mobile-payment options and customer-loyalty programs in their own applications. Terms of the deal weren’t disclosed. The transaction is expected to close this month or next, PayPal said in a statement Monday. [Read more…]
A new report entitled Mobile Wallets: The U.S. Landscape by Mercator Advisory Group identifies U.S. mobile wallets by category and technology.
The physical wallet might someday go the way of the checkbook, used by few and no longer a necessity. Growing consumer use of smartphones is creating a market for mobile wallets capable of serving many of the same purposes physical wallets served for centuries but now are able to take advantage of a plethora of new functions made possible in an increasingly digital marketplace. [Read more…]
A new research report from Research & Markets entitled Opportunities and Strategies for Credit Issuers, examines mobile payment opportunities For US credit issuers.
The major card networks began supporting contactless payments nearly a decade ago, but consumer and merchant adoption has lagged considerably. Several startups, as well as established firms outside of the financial services industry, are marketing enhanced mobile payment services capable of causing significant disruption to the consumer payments value chain. [Read more…]
Mobile wallets are being introduced to the market in a steady stream of configurations from passive containers to dynamic payment products. Companies large and small are vying for a piece of a future market. Along the way, these emerging payment forms are reshaping traditional business models and impacting traditional acceptance brands.
In a new research report, Mobile Wallets: The Business and the Brand, Mercator Advisory Group applies a business model canvas approach to analyze examples of developing mobile wallet types based on first-person interviews with the leaders of these companies. In addition, this report breaks apart the impact of branding based on different mobile wallet structures to discuss the effect on traditional payment brands as well as the challenges new acceptance marks face in the market. [Read more…]
As excitement surrounding mobile payments develops, most of the focus has been placed on the wallet apps such as Google Wallet and Isis jockeying for position. However, the success of a mobile payments system will depend on far more than which piece of software will be used on the most devices. A fully functional system will require the integration of a number of different factors, including POS terminals, processing, the devices themselves, and more. [Read more…]
Paydiant, a new Boston-based mobile payments venture, today announced that it closed a $7.6M round of funding led by North Bridge Venture Partners and General Catalyst Partners. The investment will be used to accelerate product development, sales and marketing for Paydiant, which plans to formally launch later this year.
The company was co-founded by Chris Gardner, Kevin Laracey and Joe Paratore — three proven entrepreneurs in the e-billing, payments and mobile space that have collaborated before.
All three have significant early-stage and public company experience, having founded or played key roles in companies that were pioneers in both online and mobile payments, and other emerging markets. Jim Moran, General Partner at North Bridge and John Simon, Managing Director at General Catalyst have joined Paydiant’s Board of Directors.
“Enabling consumers to use their phones to make everyday purchases is a huge market opportunity,” said Chris Gardner, co-founder of Paydiant. “We have assembled a team who understand both the business and technology issues that must be addressed to create new mobile payments offerings for broad adoption.
This group has hands-on experience creating and operating successful online and mobile platforms that facilitate billions of dollars in payments for many of the world’s largest companies today. We are fortunate to partner with North Bridge and General Catalyst who also have deep expertise in both mobile and payment technologies.”
Laracey was co-founder and CEO of edocs, the leading online billing and payments company that was acquired by Siebel Systems (now part of Oracle) in 2005. At Siebel, he was the general manager of its self-service solutions group. Most recently, Laracey was a venture partner at Sigma Partners.
Gardner also worked at edocs where he served as vice president of products and marketing. After the acquisition by Siebel, he became the senior vice president of products and marketing at m-Qube, North America’s leading premium SMS mobile payments provider that was acquired by Verisign in 2006. Most recently, Gardner was the chief marketing officer at ExtendMedia, a digital media content delivery and commerce platform software company that was acquired by Cisco in 2010.
Joe Paratore was edocs’ vice president of engineering and technical services. After the acquisition by Siebel, he joined Gardner at m-Qube as the company’s senior vice president of technology operations. Paratore continued with Verisign and managed a large global staff and eight data centers as the general manager and vice president of technical operations and customer care for Verisign’s mobile payments and mobile messaging businesses.