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The Case for Consolidation

If you believe Forrester, the mobile payments market in the United States will triple over the next four years, from $50 billion to $142 billion. Who will dominate the market for mobile payments by 2019?

Well, it’s not likely to be Starbucks.

At the end of 2013, Starbucks claimed a whopping 90% of the mobile payments market, thanks to its early charge into the app-based payment space and its ability to merge mobile payments with a loyalty scheme.

While Starbucks’ claims and Forrester’s market size analysis are clearly inconsistent, there is a larger ...

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