PayPal, Google, Facebook And Apple Are Fighting For This New Multibillion Dollar Market

"AT&T challenges Visa, MasterCard" is an irresistible and compelling headline. So is "PayPal, Google, Facebook, Apple fighting for dominance in mobile payments." Whether the implied competition is direct, indirect or largely fictional is hard to address at the moment. Six months ago it seemed as though AT&T and Verizon Wireless were on a collision course with Visa and MasterCard. That no longer seems to be the case, and it has taken just six months for matters to change.

Nor is it likely that PayPal and Google are interested in the same parts of the ecosystem. Google cares about advertising potential. PayPal, on the other hand, clearly cares about transaction revenue and the "float" on prepaid accounts. Apple might be more concerned about boosting the value of iTunes in ways more directly related to content. Facebook almost certainly is more interested in online forms of social commerce.

There is but one unifying theme: Every company, or just about every company, thinks people are going to be using their mobile devices more often for commerce activities. In some cases that might mean using the mobile device as a substitute for a credit card or debit card swipe. In other cases the loyalty application will be the driver. In yet other cases the business model will hinge on promotion, advertising and marketing potential.

In yet other cases, the attraction will be mobiles used to make micropayment purchases for games. In most cases the headline potential won't be as dramatic, though the concrete revenue models will be. Some players will enter the market targeting one segment, then shift course and wind up targeting other segments. Isis originally launched as a "payment" competitor, but has switched to the "wallet" or "credentials" part of the ecosystem.

Square established itself as a payment terminal provider, but now seems to be adding on "wallet" functions as well. Similar shifts can be expected each step of the way as the "mobile money" business gets going on a larger scale. PayPal already is a major player in online transactions, and the issue is how it might try to leverage its position to become a bigger player in real-world retail transactions as well.

PayPal, Google, Facebook And Apple Are Fighting For This New Multibillion Dollar Market