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Big Banks Push Mobile Payments

Say goodbye to the days of needing a routing number or credit card to pay a store or vendor electronically. Say hello to a real game changer in electronic payments that combines mobile email, SMS and QR codes. Big banks are partnering to allow phone-to-phone, bank-to-bank payments.

Read more to learn what this means for merchants, e-tailers and marketers...

Trend
Say goodbye to the days of needing a routing number or credit card to pay a store or vendor electronically. Say hello to
Clearxchange, a payment solution soon to be launched on behalf of big financial players Bank of America, JP Morgan and Wells Fargo. The service will enable anyone to transfer payments between two different banking institutions simply by entering an email address or phone number.

Takeaway
This news along with the new Google Wallet provides long-awaited alternatives to PayPal. It adds convenience for everyone -- not just for customers. Merchants will be able to offer consumers single-click purchases directly from email, SMS or QR codes. Proof that the space will be a mainstream hit,
PayPal sued Google just hours after Google's Wallet announcement.

In many ways this new payment option is similar to Amazon's one click purchase that allows customers to skip lengthy checkout processes while still enabling security features. The difference is that this will be widespread.

How-to
There's nothing to do right now but wait. Marketers should watch the trend develop and keep an eye on the players involved. Opportunities will surface and, when the time comes to adopt these new services, test with low ticket items first.

Clearexchange will be followed by competitors driving down money transfer fees (expected to become near $0). There are also a variety of angles mobile payment vendors are taking, including the
potential to target offers on an individual basis rather than by demographics.

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