The people have spoken: and they want mobile PoS

As 2013 progresses apace, we edge ever nearer to mobile payments breaking through into mainstream use. A study by Timetric reveals that consumer demand is going to force retailers, mobile companies and technology providers to start implementing true mobile point of sale technologies in shops.

Meanwhile, Square – which takes payments from cards onto smartphones – has decided to start wrapping local recommendations into its payments app in a drive to start to make recommendation more relevant. The thinking behind Square’s approach is to not rely on who is checking in where, but who is buying what where and what you yourself have bought. This, it believes, will help drive more mobile sales as users start to trust the recommendations.

This move away from being location-specific recommendation and with recommendations from friends driving viral uptake of services or sales, is something that we are likely to see a lot more of over the coming months. Its not so much about what your limited number of friends recommend, but more about what people who like what you like, buy what you buy and so on that will drive the next era of mobile-social recommendations.

This in turn, believes, Square at least, will drive more mobile payments.

But as consumers get evermore used to spending money on and through the mobile devices, there is potentially a black cloud looming. The UK’s Office of Fair Trading (OFT) has launched an investigation into whether kids – though or exclusively – are being unduly pressurized into making in app and in game purchases – especially within in free games.

The OFT believes that this is on the rise and that thousands of pounds are being somewhat coerced out of innocent players and its is being assisted by the growing ease with which consumers can pay in-app.

And this is quite a conundrum. One of the key USPs for mobile payments – especially seamless and buried payment processes – is this ease of use. Sadly, it seems that that very ease of use is being taken advantage of and millions of pounds are being pulled out of peoples’ pockets unwillingly.

It should be stressed that, at this stage, the OFT is not investigating specific breaches of the Regulations. The OFT is inviting stakeholders, including games developers and hosting services, to provide information to help it understand the prevailing practices in this market. It has set an initial deadline of 28 June for submissions. This consultation itself is expected to last until October 2013, at which point the OFT will indicate its intentions going forward.

Until the OFT publishes its initial findings those involved in supplying freemium apps will need to consider whether they are doing enough to ensure parents are aware of the practical steps they can already take to protect children including .

making sure a child using a smartphone/iPad doesn’t know the password/pin needed to make purchases.