Mobile Wallet Technology: The New Barbarians are at the Gate
Posted on May 16, 2012 at 06:00 AM EDT
As I discussed in Part One , the sky is the limit when it comes to mobile wallet technology . The big brand credit card issuers: American Express, MasterCard, Visa, and Discover Card, along with every other card issuer and wannabe credit extension intermediary are all already into the mobile wallet space. Their offerings vary and competition between them will be as brutal as it always has been. And that's good for consumers. Creating choices for consumers to drive business will lead to more innovation and more services offered at more competitive prices. At least, that's the way the free market is supposed to work. But, traditional credit card issuers that are forcing banks to compete to offer credit to card borrowers, aren't the "disintermediators" I talked about in Part One. They help spread banking relationships across the spectrum, they do not remove banks from the equation. And because banks are all in the present equation, pricing pressures aren't prevalent and fees and costs remain stubbornly high. But as you'll see, that's about to change. The Greater Fear for the Banks What banks fear most in the burgeoning mobile wallet world are New Barbarians breaking down the gates that traditionally walled off banks from meaningful interlopers. The biggest, baddest New Barbarians at the gate are some of the biggest names in the Internet world, the social media world, and the telecom world. If you want to make a fortune on the mobile wallet future the giant players and Barbarian disintermediators to watch and invest in include: Google , Yahoo (yes, Yahoo), Microsoft (believe it or not), Facebook (when it goes public), Nokia, Research in Motion (yes, I am advocating buying Nokia and RIMM), Apple , Verizon, and Vodafone. There will be other giants worth buying, but until the ground shakes from their emergence, these giants have a giant head start in the mobile wallet world of the future, starting now. Of course, keep in mind that the scope of this series is intentionally broad. So, it's not the place to give specific reasons to buy specific companies. My purpose is to explain to readers the extraordinary opportunities inherent in the mobile wallet future. But, if you want to know why these specific companies will be huge winners in mobile transactions and what they are doing to warrant their own exceptional futures, as well as when you should buy them, take heart. Keep reading Money Morning . As it takes shape I will follow this report with specific recommendations accompanied by all the reasons and metrics you'll need to make informed investment decisions. In the meantime, here's why these businesses are primed to rake in profits on the digital wallet phenomenon. To continue reading, please click here...