Retailers to Forge Uber-Like Mobile Payment Pacts, Collison Says
Mobile payments companies and retailers will forge more partnerships where they retain customer identities, making it unnecessary to re-enter credit-card information, said John Collison, co-founder of Stripe Inc.
Google Inc. (GOOG), PayPal and startups such as Stripe are trying to grab share in a market for U.S. mobile payments that Forrester Research estimates will reach $90 billion in 2017 from $12.8 billion in 2012 -- a compound annual growth rate of 48 percent. Car-sharing startups like Lyft Inc. and Uber Technologies Inc. use software built into their apps to retain information, making it simpler to reuse the service.
One reason car-sharing services “took off is because that’s a place where the payment is pretty inconvenient to take,” Collison said.
Consumers are looking for easier ways to pay online and on mobile devices, a trend that has companies competing with new technologies -- from electronic wallets that store card information from multiple providers in one place to card-swiping devices that plug into mobile phones.
PayPal and Google both offer virtual wallets that store information for credit cards from Visa Inc. (V), among other providers, aiming to give consumers a way to move from website to website without typing in payment information more than once.
To contact the editor responsible for this story: Tom Giles at firstname.lastname@example.org