Interestingly it seems VeriFone Systems Inc (NYSE:PAY)’s shareholders are very concerned about disintermediation. In fact, the concern is so great that the company has taken the time to put together a FAQ about the disintermediation threat on their website. While the company makes a good argument it does have something to worry about. The biggest tell is that the company specifically addresses its plan to act as an open source platform so it doesn’t have to pick the winner.
Can Anyone Win in the Mobile Payment Space?
Google Inc (NASDAQ:GOOG)’s solution, Google Wallet, is the logical extension for the company designed to add purchase behavior to its already massive stockpile of data. Despite some major advantages, namely Android, the company has yet to really make Google Inc (NASDAQ:GOOG) Wallet happen. This isn’t a big shock since mobile payments in general haven’t taken off as expected. According to eMarketer, which predicted $2 billion in mobile payments for 2013 only to cut it in half this month, mobile payment growth is partly stymied by a congested landscape and adoption issues. In the end the strongest solution may simply be the first to gather a significant amount of market share.
At this phase there is no clear winner, particularly with the number of start-ups and established players showing interest in the field. If a company on the front lines like VeriFone isn’t willing to pick, I’m not sure I am either. If Facebook Inc (NASDAQ:FB) payments manage to gain widespread adoption, it could be a strong catalyst for the company, but that’s a big if. Google Inc (NASDAQ:GOOG) and eBay Inc (NASDAQ:EBAY) are fearsome competitors in their own right; it would be hard to bet against either. In the long-run Facebook has plenty to gain, but the road to success is riddled with competition, don’t expect overnight success.
The article Can Facebook Gain From Testing Mobile Payment Arena? originally appeared on Fool.com and is written by Chris Moore.
Chris Moore has no position in any stocks mentioned. The Motley Fool recommends eBay, Facebook, and Google. The Motley Fool owns shares of eBay, Facebook, and Google.
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