Plastic Mobile’s Bagel Wednesday News: Earth shattering event!

Today, the Bagel Wednesday team really shook things up in the office and pretty much changed the way we will think about Bagel Wednesday forever. Instead of bringing bagels to our mobile sharing meeting, they made pancakes. Holy flap jacks batman!

Needless to say, the excitement over the pancakes made prying mobile news from full mouths a challenge. But, we did learn more that we can expect the new office iPads to arrive any day now, that Apple may have purchased patent rights to mobile payment controls and that I found an amazing mascara that actually gives your lashes some serious oomph (Benefit “they’re real!” mascara, available at Shoppers’ Drug Mart for $26).

While there was actually very little mobile news shared, the experiment in a breakfast favourite resulted in some great bonding and a long lasting sugar high thanks to the syrup.

Good job team!

A recent study conducted by Javelin Strategy & Research and PaymentOne of online and mobile buying behaviours discovered that four out of five consumers would spend more online if there was a more secure alternate method of payment. The survey suggests that online merchants are missing out on an annually, aggregated revenue of $110 billion.

Whoa. Talk about a commerce gap.

An article in cellular-news noted that the survey found that consumers believe – at a whopping ratio of four to one – that direct carrier billed mobile payments are more secure than online credit and debit card digital purchases. Phil Blank, Managing Director at Javelin Strategy & Research, said “If digital merchants simply offered consumers an alternative way to pay, such as mobile carrier based payments, 79 per cent of decisive consumers indicated they would spend more, driving significant new incremental revenue from subscriptions, transactions and purchases. 300 percent more survey respondents perceived carrier billed mobile transactions, where financial information is never shared or loaded onto the phone, to be safer than “mobile payments” requiring consumers to input credit or debit card info.”

While 95 per cent of consumers surveyed had mobile phones, only 36 per cent had used them to purchase something. We suspect that will change very shortly. A note to merchants everywhere: drop your lengthy, arduous credit card forms  (known for timing out…grrrr) in favour of a mobile carrier alternative and, well, jackpot, my friend. Jackpot.

Imagine how convenient it’ll be to make payments at restaurants or stores with your iPhone or iPad! Imagine how great it’ll be to have a fast checkout process and not have to wait in line. According to Bloomberg’s report, Apple’s next iPhone and iPad are expected to have NFC technology.

NFC technology (near field communication) that is gaining popularity, allows various forms of data transfer between the iPhone and other NFC capable devices. NFC technology receives and sends out information at distances up to 4 inches. This means iPhone and iPad users will soon be able to make payments using NFC.

The key to this is iTunes, or better say the payment system within iTunes that is already in use by millions and millions of people around the world. By entering the payment service market, Apple has a massive opportunity. By including NFC into its iPhone and iPad, Apple could use its existing iTunes accounts and give consumers an alternative to traditional financial services by Visa, MasterCard and PayPal.

Right now, Apple has launched a prototype for the payment services by allowing smaller businesses to scan NFC-enabled devices.  Upcoming versions of the AT&T iPhone and iPad 2 are expected to have the technology enabled and the technology is anticipated to be available by mid 2011.

If Apple can nail NFC and tie it directly into their iTunes payment system, it could change everything. This can be an evolution of the payment system within iTunes.

This could be the greatest tactic they’ve ever pulled. Is it possible that Apple and iTunes will replace Visa and Mastercard? From our perspective, it seems unlikely that they will go that far due to the complications and the financial burden associated with giving consumers credit.  But I guess we will never know how far they will go and we will just have to wait and see!

What if, Facebook got into e-commerce by allowing you to process payments with your Facebook account. Is that a stretch? The question was raised at a Deloitte presentation in called ‘Social Media for Consumer Business.’

Facebook is always finding new revenue streams; and frankly selling ads on the site isn’t cutting it. On July 1st, the social networking giant is forcing Facebook Credits to their game developers. So, virtual currency will be a thing of the past when you use Facebook’s social games like Farmville. The game apps are free to download, but if your farm needs more hay and animals to survive, expect to pay up (with the real currency). Facebook will earn 30% on payments for all virtual goods when paid with Facebook Credits. (Not a bad source income). Players can buy credits though Facebook via PayPal, credit card, or paying it using their mobile phones.

Now that last payment option for Facebook Credits, leads me to the initial question – Could Facebook become a mobile payment processor?  Could there be a ‘Pay with Facebook’ option for your next purchase?  As mobile payment will be a huge trend in 2011, and with over 500 million users, it’s potentially a lucrative opportunity for the social networking site. But do they have the trust of their users?  I’m not encouraging this payment system, as I’m nervous to disclose my phone number to Facebook, let alone credit card information.  Especially, since several reports alluded that certain Facebook applications were sending personal user information to ad and Internet tracking companies.

Would you use a ‘pay with Facebook’ option? Or can we trust Mark Zuckerberg with our digital wallets?

I guess, we’ll wait and see what Zuckerburg and his people are brewing up at the Facebook headquarters.

Starbucks launched mobile payment services across its 6,800 company-operated U.S. stores; customers with certain mobile devices can now buy their coffee with the wave of their smartphone.

Starbucks Card Mobile is a free app that enables iPhone and BlackBerry users to fund in-store purchases via their smartphones. Customers who’ve downloaded the free Starbucks Card Mobile App can now pay for their order by holding their handset in front of a countertop scanner and processing the app’s on-screen barcode. Here is a video of Starbucks’s Card Mobile: http://bcove.me/24g1mkmb

In addition to mobile payment capabilities, the Starbucks Card Mobile App enables customers to manage their Starbucks Card account, check their current balance, reload their account with any major credit card, view their My Starbucks Rewards status and locate nearby Starbucks locations.

According to Starbucks, more than a third of its U.S. customers own smartphones. Within this segment, about three quarters have either iPhone or BlackBerry devices. Starbucks said it is developing a similar service for Android devices but does not know when that will be available.

This mobile payment program is only available in U.S. Starbucks locations at the moment. But that’s still a lot of places to pick up a latte with a smartphone!