PAY AS YOU GO
A lack of urgency and concerns about security keeps most people from using their phones for purchases, but the surge of applications on smartphones, and the recent need for immediate donations in Haiti, is making consumers more comfortable with the concept of mobile payment.
After the Haiti earthquake, an impressive outpouring of donations have been delivered via mobile phones. $4m dollars was donated to the Red Cross in just three days via mobile phones. Wyclef Jean’s non-profit organisation, Yele Haiti, raised money by a series of tweets asking for donations, and the singer also appeared on CNN to encourage people to donate to the cause via text messaging.
Digital commerce is still very much open territory, as card fraud continues to cost payment companies in the U.S. an estimated $8.6 bn a year, according to a report by Aite Group . However, the halo effect has encouraged goodwill, and donating to a good cause has push-tested this payment platform, for both consumer and industry.
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