Coffee shop pilots mobile payments solution

For some time now, payments industry analysts have been predicting that several emerging technologies are likely to be merged into combined payment solutions.

EMV-enabled contactless smartcards, online payment gateways and smartphone connectivity each bring new functionality to the consumer. For many, however, the benefits of each have remained distinct from the others.

According to a recent Washington Post report, a coffee shop in Washington, D.C., is now piloting a new payment system that enables customers to pay for purchases with their smartphones, instead of using cash or a traditional credit card.

Under the solution being tested, customers' accounts are linked to a credit card. The same online account can also be used to pay for purchases through websites with an online payment gateway.

“One can always wait to try things because technology is changing everyday, but at some point you just have to jump in and see what’s working,” Max Brown, owner of the cafe, told the Washington Post.

According to many analysts, mobile commerce will become a dominant payment technology in the coming years. A recent Street report, suggested that small business owners, in particular, would do well to begin educating themselves about mobile payment solutions.