The mobile world seems now to offer significant opportunities for the entrepreneur who is a “systems engineer.”  With hundreds of thousands of apps for iOS and Android, it is increasingly more difficult to conjure up a standalone app, get noticed, and get rated highly enough to be found by consumers.   It seems that everyone who has a smart phone has an idea for an app.  And, I’m seeing those ideas daily.

Two news items today caught my attention, both having to do with mobile payments.  The WSJ reported on a deal where Google is teaming up with MasterCard and Citigroup to create with your Android phone an electronic wallet where you literally pay with a wave at a special reader.  Separately, TechCrunch discussed American Express’ announcement of its digital payments platform called Serve, also available on mobile phones.  The massive shift toward mobile as the platform of choice for the Consumer Internet is being closely followed by the ability to conduct P2P and business transactions.  There’s nothing like tying a consumer’s enthusiasm of the moment with an easy ability to spend money. 

I also just received my Square device, which plugs into my Android or iPad and enables me to swipe credit cards.  This is truly a novel invention and comes with discount rates that are merchant friendly.  My only concern about it is that it is so tiny it almost needs a lanyard to keep from being misplaced.  At the very least, keep it away from small children who might swallow it.  Square has the advantage of letting someone collect from your favorite credit or debit card in any location, with no special appliance required on the buyer’s end.

We are probably some time away from real compatibility across mobile platforms, credit card brands, and, in particular, the myriad of POS systems in use.  And we have some work to do to make phone payments as easy as a simple card swipe.  But, in this case “some time” may be measured in months and quarters more so than years.  There is tremendous inertia in the entrenched interchanges and transaction processing systems, but that is being met head on by the creativity of our entrepreneurial technologists and their venture backers. 

Back to my beginning point, the mobile ideas I am seeing now that have the most appeal are the ones that take into account the full system viewpoint of an app, from the initial reason it is used and how it fits into a market or distribution environment all they way through to the consummation of actual business and the reporting and data collection that results.  Couponing, advertising and promotion combined with a seamless way to pay can make for a powerful business model.  Having a cool system that is tailored for a specific market where all aspects of business development prowess, including complementary channels, can be effective seems more promising than just “slapping an app” into the store. 

Stay tuned for very specific examples on this theme as some of the stealth projects that have come my way begin to unfold.