Debit and credit cards are so last year. Checks have all but crossed the line into social taboo. And cash is basically, like, archaic.

Ugh, it’s like retailers don’t even want our money.

But wait! A few days ago, a Pew study found that 65% of surveyed tech critics and stakeholders believe mobile payments will replace cash and credit by 2020.

Even though mobile payment is still in its infancy, it seems like everyone is hopeful about its future, especially when it comes to improving the process with updated technologies.

Unfortunately, good citizens, we have cynics among us – those who worry about things like security, standardization, and the cost of new gadgets.

But fear not. We wouldn’t want you stranded in the Dark Ages of outdated currency. With this handy guide, follow us into the realm of information so you, too, can help welcome this brave new, digital-financial world.

What Is This Sorcery?

Put down the torches and pitchforks, townspeople. Brands that you already know and love have signed on to create promising mobile wallet apps, using these new technologies:

NFC, or Near-Field Communications, allows you to pay simply by waving your mobile phone at an NFC receptor at the register.  RFID, or Radio Frequency Identification, is like NFC but can be used at a longer range. And 2D barcodes can even be scanned at the register from a customer’s phone to charge a pre-paid account.

Rather than producing your credit card at every purchase, mobile wallet apps store your financial data and use these technologies to pull it for you automatically, at the point of purchase.

The Google Wallet app, which uses NFC, currently only works with Citi Mastercard and the Google prepaid card, but it does sync with your Google Offers and hopes to soon hold all card types.

Acceptance is liberation. (credit: fullissue.com)

Like Google Wallet, ISIS, a joint venture of AT&T, Verizon, and T-Mobile, will also use NFC and will hold credit cards, loyalty cards, and promotions.

PayPal also plans to release its PayPal Wallet app soon. Unlike Google Wallet, it won’t use NFC but will let you change your payment method up to 7 days after you pay.

These apps will soon be able to hold multiple card/account numbers and allow you to choose which account you’d like to charge when you wave your phone at the receptor. They will also have the ability to store coupons, receipts, and past purchase information to facilitate discounts and returns easily.

However, as mentioned earlier, there are dissenters. They wonder if it could be easy for someone to access your bank accounts just by waving their phone near yours (no.) They don’t want to have to buy NFC-enabled phones (they’ll change their minds). And they complain about the lack of standardization in mobile payment technologies (ok, that might be a good point).

How Can Marketers Conjur This Black Magic?

What the dissenters don’t see is that evolving mobile payment platforms are prime real estate for marketers!

Imagine the ease of distributing targeted promotions! Using NFC, mobile wallet apps can already track a consumer’s location and purchase history, allowing brands to send her coupons for the store she’s browsing in or updates on items she frequently purchases.

Think of the social media integration! What if a check-in immediately rewarded her with a coupon loaded to her mobile wallet, and her purchase was discounted automatically at the register? And if she allows Facebook to post which coupons she was receiving, not only would it encourage more check-ins, but it would encourage her friends to adopt the app, too.

Plus, there’s potential to move into other forms of media – MasterCard’s QkR app can pull purchasing information from just about anywhere, including QR codes, TV signals, and the Xbox Kinect. Praise technology of the future!

Say NO to the tyranny of physical currency! Demand your NFC-enabled smartphone today!

(credit: venturebeat.com)

The opportunities of mobile payment are looking promising. While the technologies and full capabilities of the apps are still to be cemented, brands are sure to see significant benefits when the rough edges are smoothed out regarding standardizations and security misperceptions. But, once mobile payment technology is ready for the mainstream, brands can use it to inspire action and usher in the glorious age of mobile finance!