According to a report from TechCrunch, the history of the mobile payments industry has been a slow and often disappointing one. Focusing on smaller market niches and not going after the replacement of “plastic transactions” may help the industry.
In debating the future of mobile payments, there is a belief that “mobile payments adoption isn’t just about the actual movement of funds, but more so focused on the broader mobile shopping experience.” Others argue that this “misses the point of payments as the enabling platform for monetizing new retail industry engagement services — commerce — in an increasingly mobile world.”
There are three trends that have the potential to drive mobile adoptions for both consumer and merchant.
- Services Before and After the Transaction
Activities such as innovation, data analytics-riven ways to discover new products and services, saving money via price-comparison tools, and delivering immediate gratification via location-based services, can deliver vale to the consumer and merchant.
- Broad Usage of “Cards on File”
“Cards on file” makes payments seamless and transparent to the consumer. It is useful for frequent interactions and for casual (one-off) transactions. It will be a central driver for mobile payments once in-store mobile engagements become a reality.
- Increased Security
Security has become important after several sensitive data breaches. Industry initiatives, such as tokenization, have the potential to increase the security level and public perception of mobile payments.