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Smartphone Payments = Future Changes to Micropurchase Payments?

Update: Half of the post was cut off for an unknown reason. That has been fixed and the entire post is present.
Fun Stats in a Chart
An interesting chart was shown yesterday morning on CNNMoney.com. (The link is at the bottom so you’ll keep reading.)
An chart yesterday shown on CNNMoney.com (the link is at the bottom to keep you reading) projects spending on smartphones will increase nearly ten times from 2010 to 2015. (The article link is at the end of this piece.)
  • 2010: $16 billion
  • 2015: $214 billion
Government is usually at least five years behind the commercial market. However, government eventually adapts. Higherups will eventually realize the potential for smartphone payments for government contracts, specifically under the micro-purchase threshold ($3,000).
The Starbucks Example
Here’s a realworld example for you. Starbucks uses mobile card apps for mobile payments right now. Here’s a description by Starbucks right from its site:

With Starbucks Card Mobile, you can check your balance, reload your card with any major credit, view your transactions and conveniently track your Stars in the My Starbucks Rewards program on your BlackBerry and iPhone or iPod Touch! Just scan and go.

Starbucks has also spread the mobile payment option to all locations in an announcement it made on January 19, 2011. This shows that the smartphone payment option can be applied nationwide
More specifically, smartphone payment adoption will be delayed by a two issues.
  1. Security. This is always a top concern, particularly because the federal government is unfamiliar with mobile payments.
  2. Usability. Many people refuse to a reluctant their government-issue smartphones because they only use email. Phones excelling at only email were acceptable several years ago, but today people want mobile browsing. If government phones can’t do the same things as personal smartphone, people may be reluctant to carry the phone for mobile purchases.
These are just a few ideas. I can’t (yet) directly influence acquisition policy. Until I can, we’ll see what happens.

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