Across industry sectors, entrepreneurs continue to innovate and act as force of change. In many cases the innovation is very forward thinking and results in the creation of dazzling new products that no one ever dreamed of before. Other times, however, the innovation is targeted at replacing old and outdated ways of doing things. One example of this in today’s marketplace can be seen in the mobile payment arena.
Think about it, societies have been exchanging items of value for products and services for a long, long time. From seashells, precious metals, and paper notes to modern-day MasterCard and Visa credit cards that don’t even need to be swiped, the medium has changed but the essential function has remained the same. Today’s flurry of activity in the mobile payment space is simply the next logical step.
So with all the new companies popping up to capitalize on this trend, how is a social entrepreneur to take advantage of the next logical evolution in payment processing? The key comes down to two simple words: trusted intermediary! And when it comes to money, banks serve as the most trusted intermediary. Unfortunately, however, waiting for the banking sector to innovate may take a long, long time. It just isn’t in their organizational DNA. MasterCard and Visa have served well as payment intermediaries in the credit card space, but consumers often have multiple accounts at various institutions and an intermediary that only interacts with one of the consumer’s accounts just won’t fly in the marketplace.
Enter Google and the wireless carriers themselves. Google stands to capitalize on its large user base and its integration in so many internet based technologies; not to mention its Android operating system. In fact, Google has already taken steps to move into the mobile payment arena with its purchase of Zetawire. The wireless carriers are also jockeying to establish a foothold. In fact, Verizon, AT&T, and T-Mobile have entered into a joint venture to specifically enter the mobile payment arena.
All of these companies are viable contenders in the mobile payment arena and social entrepreneurs would be well advised to keep an eye on them. What would be interesting is if Intuit decides to make a significant entrance into this space. Given their already trusted relationship with small businesses and consumers alike, their Mint application could be just the perfect smartphone application to capitalize on the mobile payment trend.
What company do you think has the best chance of becoming the market leader?
