Mobile Payments Mania Charging Straight Into Greed
NEW YORK (TheStreet) -- The digital wallet is coming, that's a definite. As the space is getting more crowded, though, it runs the risk of being driven by nothing but greed. That could hurt the space more than it helps.
Retailers Wal-Mart (WMT), Best Buy (BBY), CVS Pharmacy (CVS), Sears Holding (SHLD), Shell (RDS.A), Target (TGT) and a host of others are creating their own mobile payments network, known as a Merchant Customer Exchange to challenge the existing mobile payment systems.
The space is already crowded enough, with Google (GOOG), eBay's (EBAY) PayPal, Visa (V), MasterCard (MA), Square and others jockeying for position, and dollars. Even the telecom companies such as Verizon (VZ) and Vodafone (VOD) are in the space.
It's justifiable that these companies want a piece of the pie, and to not have to pay third-party providers. The space is expected to grow four-fold, from $172 billion in mobile-payment transactions this year to $600 billion by 2016, according to research firm Gartner.
The "next big thing" is mobile payments. Everyone gets that. Just look at the deal Square signed with Starbucks (SBUX) last week. It brought the space to Main Street, in hopes that more people will become comfortable using the technology. Why Square Coming to Starbucks Is a Big Deal By offering this alternative, it keeps more money in-house, and the retailers can leverage what they already know about consumers shopping habits to provide a more pleasing shopping experience. What these companies don't realize is that the more entrants in a space, particularly one as sensitive as payments, the more it's going to confuse everyone. It could cause mobile payments to go from being "the next big thing" to being "the next big thing that wasn't." People are just becoming comfortable paying with services such as PayPal. By fostering more alternatives and hoping for change, it may backfire, and cause people to pay with change, instead of changing their pay habits. Interested in more on eBay? See TheStreet Ratings' report card for this stock. Follow TheStreet Tech on your wireless devices. --Written by Chris Ciaccia in New York >Contact by Email. Follow @Commodity_BullSelect the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
