Life May Take Visa But Google is Giving Life To Mobile Commerce

Implications: I have been talking about mobile commerce and its implications for over a year. See past opinions/analyses entitled: -    "Mobile Banking – Improves Access and Convenience" -    “The Cell Phone – The Mobile Wallet Has Arrived” -    “Mobile Commerce – A New Investment Opportunity – The Recession May Even Help It” -    “Mobile/Wireless Banking – Money Transfers Have Arrived” -    “The Cell Phone – The Mobile Wallet Has Arrived” -    “Wachovia(NYS:WB) - After M-Banking (Mobile Banking), the M-Wallet (Mobile Wallet) Will Be Right Around the Corner” -    "Cellular – A Money Maker No Doubt - A Few More Ideas – Part 1"   Google’s actions take mobile commerce deeper into the realm of consumer purchases.

Analysis: During this recession Google’s actions will be significant.  As businesses seek ways of reaching the consumer, Google’s Android (with help from VISA) is providing access to new marketing technologies.

With Android and Visa users will be able to opt into a Visa system to sign up to for offers from marketers that sends deals sent directly to their phones.  Mobile financial services are already being deployed slowly now.  Consumer purchases were a natural next step.

A user will also be able to click on an "Offers" button on his or her phone to see what the latest deal might be.  Apparently through a "Locator" feature, which uses Google Maps, the customer can find exactly where the nearest retailer offering the deal is located.

In past opinions/analyses I have openly and proactively supported wireless location services and technology.

See:

-    “Sprint - Location-Based Services – A Key Service – A Suggestion to Dan Hesse”
-    “Online Advertising – Money Appears On The Horizon – Coming Fast”
-    “Qualcomm is not in TROUBLE – Peaks and Valleys”
-    “Cellular – A Money Maker No Doubt - A Few More Ideas – Part 1”
-    “Online and Mobile Media are Here To Stay –Social Collaboration & Location Technology Will Figure Prominently”
-    “Online Advertising is Critical to the Future of Broadband Media – But Not At The Risk of Privacy”
-    “Telecom Carriers Adding to the Advertising Chaos”
-    “Nokia’s Purchase of Navteq is Really a Shot at Qualcomm”

Google is not the first to bring wireless location technology to the forefront of consumer cellular service.  However, given Google’s brand name, Google is certainly the most powerful telecom/infocom company to ever bring together wireless location and mobile commerce in order to commercialize the technology and service.

Getting Burger King into the act is a no-brainer.  It is a merchant that has a built-in customer base; it is called the mass market.  Simply put with Burger King, Google and Visa will not need to worry about getting a test base of customers in.

What Visa and Google are demonstrating to the investment community and the consumer marketplace is that the platform for mobile purchases works.  The service needs to be rolled out slowly because any misstep will kill off the service.  Google and Visa need to make this work perfectly.  There is no room for errors.  The lack of phones slowing the rollout is not an issue.  Since we are in a recession, the time bought slow rolling will enable Google and its merchant and financial partners the time needed to adjust the sales pitch.  As I indicated there is no room for error.  Wall Street may want Google to rush it out but frankly I would not want a Wall Street broker telling me how to run a company – this is an issue of long term decision making versus a quick stock flip.

Google’s approach is logical and sensible.

As it is presented now the platform will also support discounting and coupon purchasing.  Given the environment today, any purchase that leads to a deal like the fifth coffee being free is going to go over very well.

The next thing for Google to do is to automate the target marketing of towards users via personal profiles stored in their databases.  Imagine, walking or driving around and then suddenly you get a text that says their is a store running a sale on new shoes or coats.  Earlier that day you updated your profile to indicate you wanted a new pair of shoes and a coat.  Google can begin to actively push ads and electronic discount coupons consumers.  This will geenrate more advertising dollars for Google and can be used by small merchants.