Yet another payment solution on the horizon is the MCE initiative for smartphones and tablets. The new solution is being led by 7-eleven, BestBuy, CVS Pharmacy, Darden Restaurants, Lowes, Publix, Sears, Shell Oil, Sunoco, Target, Dunkin’ Donuts, Bed Bath & Beyond and WalMart. According to their website, “Development of the mobile application is underway, with an initial focus on a flexible solution that will offer merchants a customizable platform with the features and functionality needed to best meet consumers’ needs.” The company intends to make their application available on all major smartphone platforms.
This latest solution is a mobile wallet that has serious potential to change the way consumers fulfill their mobile payments. The mobile app links a customers smartphone directly to their bank account allowing merchants to accept non-cash payment without involving credit card processing fees.
Though this is a significant shift from other mobile digital wallet schemes, the biggest difference might be in Loyalty Card programs used to entice existing customers to stop and shop. The creative potential for these types of programs go well beyond gift card processing and extend to e-mail and social networking. Customers could receive special offers based on the word of mouth, social sharing they do for the large retailers.
This mobile payment solution is initially just for the big boys though. They are catering to their own needs currently and there is no future consideration for small to medium size business in their digital wallet. With how fast things change in the mobile payment industry, this too could change and usher in new currencies for universal digital wallet payments.