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Showing posts with label europe web trends. Show all posts
Showing posts with label europe web trends. Show all posts

June 11, 2011

The Digital Wallet Revolution : Who Owns Your Wallet

"the war for your digital wallet"
Above Infographic source : Via Creditsesame

Recently Google announced that Google Wallet  that  would enables shoppers to pay for purchases by waving their phones over scanners at retailers' registers.Building a 'digital wallet' will help Google grow its advertising business by collecting even more valuable data about its users, which it can in turn leverage to attract retailers eager to learn more about their customers.

With Google’s digital wallet, some shoppers will be able to use their smartphones as a credit card as well as cash.ust a few days before Google’s announcement, Bank of America, Wells Fargo, and JPMorgan Chase also announced a new mobile payments service that allows people to use their checking accounts to send a person money with an email address or cell phone number.

Compete released the results of its Q1 2011 Smartphone Intelligence Survey. One of the noteworthy insights is that mobile banking continues its rise, with over 51% of respondents reporting using their phones for mobile banking, up from 40% in Q3 2010.Around  45% of smartphone owners used their phones to view their bank account status, 20% used their phone to redeem coupons, and 12% used their phone to transfer money to another person and purchase goods at a retail point of sale.

25% of consumers are likely to pay for groceries with their phone instead of a credit or debit card. In addition, approximately 1 out of 5 consumers indicated they’d be likely to pay for clothes, phone charges, and coffee with their phone instead of a card.

Specifically, 58% responded that they preferred to only use their mobile phone for communication (calls, email, or text) while 56% indicated they were concerned with the security of using the phone for payments and 52% were concerned about security if they lost their phon

 Through their " Digital Wallets" Google  can potentially collect real-time information about users' locations, shopping habits, spending patterns and more, then use this to sell ads, coupons, and loyal reward programs to local merchants

"If Google, a company whose core business model is based on advertising revenues, can somehow add real-world purchase information to its collection of online behavioral data, it could allow them to drive even more advertising revenues," explained Forrester analyst Thomas Husson.

The Digital wallet  is a big and lucrative " Business Model"  for Google" as they can drive "  Numbers" by virtue of  owning more than 80% of world wide search users.By tracking  where people shop and what they buy, Google could take its lucrative online advertising business, where promotions appear on a screen next to search results and build a second advertising business that links ads with offline activities. These offers and promotions would be based not on search queries, but on more tangible data, such as how much a customer tends to spend.