After bigger rivals Verizon Wireless and AT&T stole the limelight at the Consumer Electronics Show with promises of multiple advanced phones for this year, now Sprint Nextel is trying to grab some attention with a stunt of its own.
Cheap and stylish are more likely to be antonyms when describing mobile phones. But the global market will reward a smartphone that can deliver on both fronts, a goal that Android phones seem best suited to reaching.
The “mobile wallet” concept has been bandied around for years as a promise that one day “soon” we’ll be able to leave our purses at home and pay for everything via the cellphone.
Of course we were also meant to to get to work using Jetpacks and have robots cleaning the house by now too.
However, with credit card companies and banks desperately looking at new avenues for growth, they’re starting to talk up mobile with a vengeance as they all battle for a dominant place in the fledgling mobile payments industry.
And since they’re doing it, online payments provider PayPal has joined the fray because if consumers really want to move their lives to the cellphone, it can’t limit itself to the desktop.
Interestingly PayPal says it is seeing early signs of mobile success in an area where it looks to make an old fashioned bank service – check cashing – more convenient.
The unit of eBay says it handled $100,000 in checks from its mobile customers in roughly a day and a half after it kicked off its mobile check cashing service, which allows you to add money to your PayPal account by just taking a cellphone photo of a physical check and using the PayPal mobile app.
Roughly a month later, PayPal says it processed over $1 million worth of checks.
This is a pittance in comparison with what banks handle — U.S. banks processed $30.6 billion of checks in 2006, according to a study by the Federal Reserve Bank of Atlanta, implying $2.55 billion worth of checks every month.
Still PayPal is happy enough with the result that it is already looking for ways to improve the service, specifically by reducing the check-clearing window from six days, where it currently stands.
It is also experimenting with other services aimed at expanding beyond eBay auctions and other online transactions where it is most popular. One is allowing consumers to pay for goods in a store by using a mobile PayPal app on their phone, which would require the vendor as well as the consumer to open a PayPal account.
For this service PayPal says it has signed up 200 merchants in just a few weeks. In comparison the credit card industry has convinced retailers to install contactless payment terminals in all of 150,000 locations in about five years.
The idea with contactless payments is that you can wave your phone to pay instead of having to fumble in your wallet for a credit card. Paypal is also trying out this method for size via its partnership with a company called Bling Nation, which lets you spend from your PayPal account by slapping a “Bling” sticker to the outside of your phone and waving at the machine.
“We don’t know which will take off so we’re experimenting,” said Laura Chambers, a senior director for PayPa.l But she noted that “merchants aren’t excited about hardware upgrades.”
At a New York event where the company showcased their mobile services, a bunch of which were launched on October 6, Chambers said that this year would be a year of experiments for her company.
And since mobile operators have a direct relationship with their customers, Chambers said PayPal is also in talks with U.S. operators about how they can work together. She would not disclose any details but said: “There’s a great opportunity to replace the wallet and for the mobile phone to become the wallet.”
Watch out for that smartphone! The iPhone, Android phones and the like are the weapons of the latest technology war, in the view of flash memory maker SanDisk, which supplies the memory chips that hold pictures, video and apps to the phone makers.
Microsoft officially entered the feature-phone wars on Monday, unveiling its new Kin device at a media event in San Francisco.
Few relationships in the technology world are as closely scrutinized as that between iPhone maker Apple and its exclusive U.S. carrier, AT&T. Complaints about AT&T and its network have reached a crescendo in recent months, and most analysts believe it is only a matter of time before rival Verizon Wireless gets the iPhone, perhaps as early as this June.
Since everybody else seems to be doing it, Palm chief Jon Rubinstein was asked if he might add tablets to the company’s line of smartphones based on webOS.
Apple’s iPhone launched in China last Friday with plenty of fanfare, but the sales numbers so far appear a little light. China Unicom, the iPhone’s carrier in the country, said Tuesday it has signed up 5,000 iPhone subscribers since the launch, below what some analysts were expecting.