Will mobile wallets revolutionize the payments landscape? According to Russ Jones, they will.
His article, which was published recently on the Payments Views blog, is a must-read for any payments professional looking to check out the future of the industry.
There is no doubt that payments and marketing are aligning closely to gain better insight into consumer preferences, buying trends and other consumer behavior information, explained Leilani Doyle, vice president of marketing and product management at US Dataworks.
The idea of purchase visibility and who in the card ecosystem has a complete view of the consumers is key, Doyle said. As mobile wallets become more popular, this could really shift where the best information is stored.
Here's how Jones explains the pre-mobile payments world: For the most part, credit card issuers and merchants were closest to a consumer's purchase behavior. Merchants knew more than issuers because they knew the breakdown about how the customer spent that $38 at the grocery store.
But with mobile wallets, this pattern is different.
The mobile wallet knows a lot, but does it know what the consumer buys? That's what Jones calls the multi-hundred million [dollar] question.
Source: Payments Views, January 2012