The Gap Inc. (GPS), Safeway Inc. (SWY): Shoppers Choose Apps over People

CIBC offers mobile payments app

While the Canadian Imperial Bank of Commerce (USA) (NYSE:CM) already had a mobile payment app, it has recently added it to Android smartphones. This adds a major demographic that can now pay for daily purchases with the app, and could attract many people to the company for that reason. Clients can use the app to facilitate transactions with their credit cards, which is a process accepted by thousands of retailers for any purchase less than $50. With the app, people can hold their smartphone to a payment terminal to complete the transaction.

Canadian Imperial Bank of Commerce (USA) (NYSE:CM) has recently concentrated on becoming mobile-friendly. Since 2009, net interest income after loan loss prevention has shot up by 65%. Much of that is likely attributed to the overall economic recovery, but being tech savvy hasn’t hurt either. The more user-friendly banks are, the broader customer base they will attract, and this will lead to further profits at the bank.

Just how important is the move to smartphones?

Google said during its June 12 conference that more businesses will have to initiate integration with mobile devices if they want to keep their client base. Apps are getting to the point where they will show exactly which stores have the sizes and colors of what customers want to purchase, for example. That gives a lot of power to consumers to choose the company that will serve them best.

Phillip Woolgar has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Phillip is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Shoppers Choose Apps over People originally appeared on Fool.com is written by Phillip Woolgar.

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