Mobile payments and big data: Everything you need to know
“Big data” is not an entirely new concept – it’s been around for years. But lately it’s gained traction in the business industry. One reason for this is the constant evolution of technology and the development of software that allows us to adequately harness the true power of big data.
Another reason why big data has become a buzz term is because of the mobile payments bubble. The rise of mobile payments (like using smartphones as wallets or pay points) has created an entirely new dimension of information about buyer behaviour that was previously unexplored. This week we take a closer look at big data and the real implications it has for mobile payments.
A brief history of the big data revolution
Big data is a term used to describe the large amount of data that is produced by a business’ daily transactions with its customers. Without any thorough and practical analysis, big data is disorganised and fairly chaotic, which has made it difficult to interpret and put to use.
But methods and software such as IBM’s Bigdata Analytics and Apache’s Hadoop have been developed that make it possible to arrange the data so that banks, companies and merchants can analyse it.
Consider the following scenario: you are a stationer who operates in a largely industrial area with a lot of factories and warehouses. Quarterly, you experience a high volume of stationery orders that only last a weekend. You’ve run a few exam specials around these times but their success has been sluggish at best. A decent analysis might be able to tell you that the people placing such high orders are factory floor managers getting ready for quarterly stock-taking and not students. This can be achieved by monitoring Google search trends in the area, what products are being ordered from other vendors in addition to your stationery and so on.
The uptake has been gradual, but businesses of all sizes are beginning to realise the wealth of information about buyer behaviour that big data holds. As the analytical software becomes more sophisticated, the might of big data will become unavoidable and businesses will be able to contextualise spending trends in even greater detail.
What are mobile payments adding to big data?
The boom of mobile payments has opened up a whole new world of insight into buyer trends. Information gathered from mobile payments lets vendors and banks know what people are buying and when they’re buying it, which sheds light on why they’re buying it. And herein lies the real power.
In the past, market research and various other methods of reading the behaviour of spenders could come relatively close to figuring out why people buy the things they buy. But big data can reveal so much more about customers’ mobile payment practices that businesses can implement accurately targeted marketing and business strategies.
As mobile payment solutions continue to expand their hold on the market, big data will offer businesses and banks more insights into their clients so they will be able to cater to them better.
Paycorp is your ideal business partner for mobile payments
Businesses are now equipped to track all their mobile transactions at a glance or in great detail, helping them improve their business decisions while implementing smarter marketing and customer service decisions. Get the most out of your business’ transactions by combining your preferred big data analytics tools with our assortment of mobile payment solutions.
Paycorp’s range of POS products are designed to simplify and improve your business’ daily transactional operations. Our mobile POS devices allow you to trade wirelessly, effortlessly and securely.