Are Cell Phones Poised to Replace the Wallet?
Text Messaging Is Allowing Consumers to Press A Few Keys to Pay
Saint Louis, MO - February 13, 2007. Identity theft and credit card fraud remain top concerns for consumers. But an increasing number of Americans are finding that they can leave the wallet, credit cards, and other personal information at home. Consumers are using their cell phones to buy the merchandise and services they want. More than 95 million Americans are considered active text messagers, according to the Yankee Group research firm. A growing number of businesses are using mobile marketing to not only send special offers to clients who have opted in, or signed up to receive coupons and sale notices on their mobile devices, but to sell to these customers too via their cell phone.Consumer contests and sweepstakes that require cell phone users to enter via text message are among the most popular business uses of text messaging so far. McDonald's, Burger King, Procter & Gamble Co., General Motors, CBS and FOX are among the corporate giants that have used text messaging to engage customers. But many firms are moving to do business via text message.
McDonalds is one of a growing number of restaurants giving customers to option to order a meal and pay with their cell phone. Dean Barrett, senior vice president of global marketing, said the Oak Brook, Ill.-based chain is developing a system that would allow customers to order by text message before arriving at a restaurant, with automatic billing through their phones. Text payment by cell phone or other device is convenient for consumers, many of whom grab the phone when they don't carry a purse or briefcase.
Text message payments not only increase sales, but there are some other benefits for business owners. Because transaction fees paid by retailers for credit and debit card payments are up, text payments allow clients to pay from their checking account rather than credit card. This change can save the business anywhere from 50 to 70 cents per consumer.
The CEO of one of the nation's leaders in text message marketing and mobile technology consulting solutions, MESSAGEbuzz.com predicts payment by cell phone will grow exponentially in the next few years. "More than 90 percent of American adults are expected to carry a cell phone by 2010. These consumers want the flexibility the technology offers," explained Steven Kelley, MESSAGEbuzz CEO. "One of our clients is already delivering subscription text on a daily basis for which consumers pay for by simply going through a PayPal supported system on their mobile devices," Kelley added. "This a great option for consumers who can choose to pay with their checking account or use a credit card," explained Kelley.