Mobile Wallet

At the "Pizza Express" restaurant chain in the UK, you can actually type a code printed on the bill into an app and make cashless and uncomplicated payments. This customized mobile payment system is only possible thanks to its own app with Paypal integration. However, it is clear that a separate app for every restaurant cannot be the solution for the widespread use of mobile payment.

In this country, these mobile payment services are still mostly based on SMS and can only be used to a limited extent. For example, payment by SMS is possible at selected Selecta vending machines, but Post Finance also offers transactions via SMS. Japan, however, where mobile payment has been used extensively since 2004 and has now become established, shows what possibilities there are here too. The breakthrough of the mobile payment system is also due to a relatively new technology: NFC. Near Field Communication technology is based on a small chip that allows data to be exchanged over very short distances. This means that you simply hold your cell phone close to the terminal when paying and the amount is debited. The prerequisites for using NFC technology are, of course, cell phones with an NFC chip on the one hand and corresponding terminals in retail outlets on the other.

Google Wallet is one of the providers trying to establish mobile payment in the western world. Once you have registered your credit card, you should be able to pay with your cell phone. However, use is currently restricted to Android phones, and there are also restrictions for credit cards. If the cell phone is NFC-capable, the app can be installed. Many major credit cards are also supported. The problem, however, is that this is a company that has never been seen before, and security and transparency are very important for users, especially when it comes to financial matters. The Olympic Games in London in summer 2012 will be particularly exciting. Visa and Samsung are using the major event as a test area for NFC technology. Around 60,000 locations in London have been equipped with NFC-enabled terminals so that visitors and athletes can make cashless payments. It remains to be seen whether "payWave" - Visa's payment service - will catch on and help mobile payment make a breakthrough in Europe. It is also rumored that Apple is also considering entering the NFC business. At present, iPhones are not yet equipped with the chip. Apple already has a lot of experience in the payment sector with iTunes. A combination of mobile device and suitable app could, of course, drive mobile payment forward quickly.

Starbucks no longer wanted to wait for an NFC service to catch on, so it developed its own app that allows customers to hold their cell phone in front of a 2D scanner and the amount is then debited. Not only can payment be processed more quickly, it also promotes customer loyalty and offers further benefits for the customer with e-coupons and discounts. After just nine months, they have already recorded over three million payments. Square Card Case also uses a different technology. In addition to the credit card reader for retailers, customers can now also install the "Card Case" app. Once the customer is in the restaurant, they can open a bill in their own name via the app. When paying, all they have to do is say their name and the amount is debited from their account. This interaction is simply based on GPS. However, if reception is poor, this could be the biggest problem.

It is unclear when mobile payment will become established, but it is undisputed that it will happen sooner or later. Experts predict sales in the region of USD 670 billion by 2015. Cash is unlikely to disappear, especially here in Germany, where people find it difficult to accept anything other than coins and notes for small amounts anyway.