This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Good-bye Plastic, Hello Phone: Mobile Wallets On The Rise

As competition for consumer dollars heats up, some big names have stepped in to the fray. Walmart, Target and 12 other retailers have joined forces to form the Merchant Customer Exchange which is developing a mobile wallet app for use at participating stores. Meanwhile, MasterCard has updated its PayPass program so consumers can bypass their credit card and pay with their phone instead.

Not wanting to be left behind, Discover has announced a partnership with PayPal that will allow members of the online payment service to make mobile wallet purchases at any of Discover's 7 million merchant partners. That's good news for the 80 percent of respondents in the Carlisle & Gallagher survey who said they would like use PayPal as their mobile wallet provider.

Consumer obstacles remain

As seems to be the case with all new technology, some have questions regarding mobile wallets and security and privacy issues. Mobile security firm Lookout estimates a smart phone was lost by its owner every 3.5 seconds in 2011. Lost devices with mobile wallets that are not password or PIN protected could end up costing their owner more than just the price of the phone.

In addition, while mobile wallets can be convenient, they are limited by the number of retailers who are equipped to accept payments via the near field communication technology used by many apps. For example, start-up Square offers the app Pay with Square, but the app is only compatible with 75,000 small merchants nationwide.

However, limited accessibility may be a thing of the past as major players like MasterCard begin to offer mobile wallets. In a New York Times article, Jennifer Miles of VeriFone, which provides merchant payment terminals, notes many businesses will likely be upgrading as they come under pressure from credit card companies.

Are mobile wallets here to stay? Retailers seem to think so.

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $124.24 0.70%
FB $83.01 0.11%
GOOG $555.17 -0.65%
TSLA $190.41 -2.00%
YHOO $44.47 0.61%


DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs