Mobile Payments: Google vs. Apple in New Mobile Marketing Tool

Google released the news yesterday that their new mobile marketing venture is to create a mobile payment system, possibly for release before Apple’s.

Read another article on this news from Mobile Commerce Daily.

Google’s mobile marketing tool will let people make in-store purchases using their Android mobile phones, instead of cash. This isn’t the first mobile payment system ever invented, but it matters because unlike other mobile marketing payment tools, it’s created by a big industry player. This is Google we’re talking about, not a young entrepreneur with limited resources and experience.

Google has used mobile marketing before, as part of its print advertisements for Google AdWords. A mobile marketing call-to-action was used to encourage businesses to respond to Google’s ads by text message. Why? To get a $50 AdWords mobile coupon. This is a great example of mobile marketing combined with search engine advertising.

Going back to the mobile payment system, we know that mobile marketing professionals have been speculating about this technology for ages. Why does anything change if Google is also in on the development? Because it might mean someone else won’t be. Apparently, Apple are also in the mobile marketing race for a mobile payment tool. Drew Sievers, CEO of mFoundry, comments on Google’s mobile marketing strategy:

“I think they are trying to steal a march on Apple and get out there a bit sooner,” he said.

The mobile payment system isn’t ready for release yet, and there are a few potential problems for consumers. Since MasterCard currently process the mobile payments, this mobile marketing tool does not cater to anyone without a MasterCard account. Another potential issue (albeit one which is in Google’s best interests) is that the mobile payments only run through Android phones. Experts aren’t sure if this will change in the future. However, Jagdish Rebello, senior director of IHS iSuppli, (California) says that this mobile marketing project has already contributed to the industry.

“The solution essentially provides a commercial trial of the technology and is a good first step,” he said.

This article was written by Emma Rose Smith of TXT2GET, a leading mobile marketing company. TXT2GET supply affordable SMS keywords to advertising that typically increase ad response by 2-3x. SMS keywords also bring measurability & accountability to advertising, because you can see the exact time and date that responses come in.

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