The mobile payments industry is going to get huge in the next few years. In 2006 Jupiter Research predicted that there would be $10 billion in mobile payments transactions by 2010. Already well established in Asia and parts of Europe, mobile commerce is only beginning to make its way to the US. While cellphone makers such as Samsung and Nokia make phones that utilize NFC (system for wireless data exchange) that lets consumers make purchases with their phones, the technology hasn't been adopted quickly due to the fact that:
- Retailers don't want to accept it until the mainstream crowd does, and majority of people won't use it until it's accepted by mainstream retailers
- Trust issues--Consumers need to be convinced that it's safe
Despite some of these challenges, I think mobile payments will have huge applications in sports settings. Instead of waiting in long concession lines at games, you could text your order and pay for it with your phone, then receive a text when it is ready to be picked up. Instead of waiting in box office lines to buy tickets, you could buy tickets directly from your phone, have the ticket sent to your phone and then have it scanned immediately (similar to what some MLB teams are doing with paperless ticketing). This technology could also allow teams could run promotions where "cash" is transfered directly to fans' cellphones. There are many more opportunities here, as the surface has really yet to be scratched.
There are a few companies in this space so far. GoMobo and Obopay are the two main contenders in the USA. Obopay is interesting in that anyone can use it; it works on any carrier or phone in the US. You can send money via text messaging, pay through a WAP site or download the Obopay application to your phone. This is a legit service -- their partners include Citi, Verizon Wireless, Helio and AIM.
Currently Obopay's mobile payment product is positioned as more of a "peer to peer" payment system like Paypal was when it was first launched. A good fit for Obopay that I can see myself using is for splitting up the dinner bill between a few people without the hassle of getting separate checks, tip, etc. It would also be convenient for college roommates to use for splitting rent and utilities.
On another note:
Don't forget that the next edition of the Sports Business Blog Carnival will be live on October 8. You can submit a post at our blog carnival homepage.