Why Mobile Wallets Are Doomed 272
redletterdave writes: "The other shoe has dropped for Square. The once-hyped mobile payments company is killing off its Wallet payments app and replacing it with a new app called Order, which will allow users to order food and beverages ahead of time at their favorite cafes and restaurants. For entrepreneurs, the concept of a mobile wallet seems so logical that the payments industry looks like it's ripe for disruption. If everybody is always carrying around a powerful computer in their pockets, it's natural to consider loading payment information onto that secure device as an alternative to cash or plastic cards. The problem comes when this logical entrepreneurial spirit merges with an industry segment that is classically illogical. The payments system in the United States is a mess of entrenched interests, fragmented business opportunities, old infrastructure (like point-of-sale systems), back room handshakes and cut throat competition. This behavior is not going to change any time soon, which means mobile wallets like Square are going to continue to struggle — at least until a more legitimate, easy-to-use and cost-effective solution comes along."
You mean.... (Score:1, Interesting)
This behavior is not going to change any time soon, which means mobile wallets like Square are going to continue to struggle — at least until a more legitimate, easy-to-use and cost-effective solution comes along."
Like a usable cryptocoin?
Re:Regular Wallet (Score:5, Interesting)
In Denmark, Mobile Pay is a massive success, users can transfer money to each other, split bill etc.
The value added as a consumer using Mobile Pay, rather than CC, is the fact that we can instantly settle our "debt". No more "I bought round number 4, so I'm not up for another now", someone goes and pays with their CC (or using mobile pay in the places that accept that) and can instantly deal with the bill among their peers.
Almost 25% of the population has adapted this solution in less than a year.
Re:Doomed? They Were Never Viable. (Score:2, Interesting)
You could manage the same thing with a prepaid card with contactless payment. This is what is used in London (Oyster), at least for public transport. No change required, but no issue with battery life.
Contactless debit has got very common this year.