Yesterday afternoon saw Marine Drive Mobile (OTC: MDMC) announce a joint venture with the m-commerce (mobile commerce) corporation Pay2Gate, and the market rewarded the vision of both companies.
The gist of the announcement is this – the two companies will work together to develop an m-commerce payment gateway platform in the coming year. Pay2Gate will pay for the development of the project and receive 75% ownership, while Marine Drive Mobile will develop the back-end, manage the project and receive the remaining 25%.
By the year 2015, estimates indicate that mobile purchases in the States alone will account for sales upwards of $115 billion. This is in spite of a down global economy and economists’ incorrect suggestions that this economic downturn will force consumers to tighten their (money) belts.
If you watch any television, particularly fast food or restaurant commercials, it is quite clear that it would be nearly impossible for the average American to tighten their belts physically. In a down economy, most have already chosen to add a notch with a leather punch rather purchase a new belt. Metaphorically, it’s just not the American way.
One has to admit that it is quite shocking that a company that has been as successful as PayPal has been inviting/allowing upstarts into its perceived wheelhouse of Internet payment options. At a second look, with one of its founders doing his best to replace NASA’s manned space operations, it makes more sense. It is tough to crush competitors in zero gravity. They just will not hold still, and when you punch them and look to finish them, you find them floating through space until…well, you get it. It is exhausting.
To paraphrase James Brown, you are simply talking loud and saying nothing. This is the best way to describe the announcement from Marine Drive Mobile.
Colin MacDonald, CEO and President of Marine Drive Mobile, stated, “Implementing our own payment gateway for mobile devices should reduce the need to pay higher fees to competing financial gateway companies. Along with this Joint Venture, since we will be developing this technology, Marine Drive will not have to pay any licensing fees to utilize the payment gateway platform and will also get a preferred transaction rate.” Colin Continued, “This could be a significant milestone, when you have a transactional based model on the multitude of transactions, each transaction that can save our company money will only help and assist a better bottom line.”
He almost sounds like Jack Donaghy weeks before the new 30 Rock season.
To read more about Marine Mobile is equally exhausting.
However, to have owned its stock today, not so much. Today saw a day where investors were able to plan a vacation and imagine a world full of drinks with little umbrellas. A day of having your every whim catered to without IKEA instructions. A day that saw Marine Drive Mobile rise steadily to a gain of nearly 20%.
If Marine Drive Mobile can pull this off, look for the San Francisco firm to build on this massive possibility. Don’t, however, look to Marine Drive Mobile as the only firm throwing its hat into this m-commerce payment arena.
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