Consumers who are guarded of dealing with the credit card debt that may come with making payments on their smartphone may soon have a new option for this type of purchase.
Allegro Systems recently unveiled its new payment processing system, known as Wipit, which allows consumers who do not have access to credit cards the ability to make purchases via their smartphones. This system allows smartphone users to make in-application transactions using accounts that can be refilled with cash.
“The smartphone industry is on the cusp of transformation as transactional applications and mobile commerce come to the fore,” said Richard Kang, CEO of wipit. “Meanwhile, no significant leader has been established as the de facto provider of payment infrastructure, and among the contenders none have a viable strategy for addressing cash-preferred end users.”
Current estimates indicate as many as 42.2 million consumers across the country do not have access to credit cards, while there were more than 50 million prepaid mobile phone subscribers, the report said. Typically, these two groups share many consumers.
Statistics from industry experts show the mobile payment industry is expected to be worth as much as $44 billion by the end of 2015, prompting companies to launch many new platforms.