Greenwich, CT / May 30, 2014 / For almost ten years we've been using smartphones to do just about everything. The Michael Zimmerman hedge fund Prentice Capital Management believes it only makes sense that we would eventually start using them to pay for things too, and thanks to the emergence of NFC you can already do just that.
In fact, soon your smartphone could end up replacing your wallet altogether. That's because a breakthrough technology called "Near Field Communication" (or just "NFC" for short) we'll soon be using our "smart devices"— in place of all of the things I just mentioned…
According to Forrester Research and the United States Department of Commerce, less than 1% of all retail sales in 2012 happened over mobile devices.
But before you dismiss that fraction of sales as insignificant, consider the following facts: 1% of retail sales equates to $24.66 billion in revenue which means that even at this early stage, the amount of money people are spending via mobile devices exceeds the annual earnings of both Wal-Mart and Amazon combined!
But now that Apple has started developing software based exclusively on NFC technology, anyone who’s looking can see the writing on the wall. Barry McCarthy, President of Mobile Commerce at First Data — says that this is rapidly becoming " the way to pay, ultimately eliminating your dependence upon credit and debit cards, checks — and even cash."
Meaning you'll be able to simply touch your NFC smartphone to an NFC reader anytime you need to pay for a sandwich... buy a new set of golf clubs... or even get a can of Coke out of a vending machine.
Prentice Capital's Zimmerman believes modern retailers need an innovative mobile strategy at the core of their integrated marketing strategic plan. And Zimmerman is backing his opinions: his pattern of investing as indicated through Prentice Capital's regulatory disclosures shows the Michael Zimmerman fund favors stocks with powerful brands and well-conceived mobile and online commerce strategies.
"Given the evidence, we seem to be entering the start of a persistent mobile age," Scott Galloway, a professor of marketing at NYU Stern and creator of L2, commented in a statement. "Brands ignore this shift at their own peril."
Michael Zimmerman's Prentice Capital is a financial investment advisory firm headquartered in Greenwich, founded in 2005 by Zimmerman.
Michael Zimmerman also sits as Chairman of the Board of directors at retailer dELiA*s Inc, and has specialized in public and private investments in the U.S. consumer retail sectors.
SOURCE: Prentice Capital Management