Tag: smartphone payment trends

Though there were a number of missteps throughout 2012, many believe 2013 will turn things around.

Last year, many of the players in the mobile payments industry had expected the use of smartphone wallets and similar services to take off, but the actual figures fell far short of the mark.

This year, experts in the industry believe that 2013 will represent a major turnaround in this area.

That said, the experts don’t believe that it will be Google, Isis, and the other joint venture mobile payments wallets that will take off this year. Instead, the attention is turning toward the banks that have been lining up to make their own way into the world of smartphone transactions.

This opinion is shared among a panel of 200 mobile payments industry experts.

This panel is made up of industry executives, insiders, and developers, who all share the belief that 2013 will be the year that is the most compelling for consumer mobile payments applications. They also stated that social networking and location apps will play an important role in the industry as a whole.

The results of a recently conducted survey by Chetan Sharma Consulting have shown that mobile payments and mcommerce will not only take off, but the power behind them will not be the traditional internet players. Instead, it will be the traditional financial companies.

According to the participants in the survey, they feel that Google, carriers, and the various popular new startups such as Square have had their chance to appeal to consumers and make it big, but that as a whole, they failed to make the impact that they had been hoping to make. Instead, it is the turn of the large credit card companies (such as Visa and MasterCard) and the banks and other established financial companies (such as PayPal) to step in and clean up the damage that was left behind.

It is those companies, said the survey participants, who will make the largest difference in mobile payments, and that will offer consumers the mobile security level and the type of services that they have been waiting to see before taking part.

Participants in an online survey reveal that they believe a cashless future is on the way.

Harris Interactive has released the results of its most recent survey, which has indicated that among adults in the United States, well over half believe that mobile payments will replace both cash and credit card based transactions at some point down the road.

Over 30 percent of the respondents said that the replacement would occur in five years from now.

The survey was performed online from November 14 through 19, with the participation of 2,383 respondents. Each were adults and they all lived in the U.S. When asked about the replacement of credit cards with mobile payments, the 66 percent believed that this would one day occur. That said, only 32 percent of the participants felt that this would occur within the next half decade.

The mobile payments survey also looked into the replacement of cash with smartphones.

The results of the poll showed that the participants felt nearly the same way about cash as they did about credit cards in terms of their replacement by mobile payments technology. In fact, 61 percent of the respondents said that they felt that one day, we would no longer use cash because of our smartphone devices. However, only 26 percent believed that this will have happened in five years’ time.

The survey findings identified several different reasons that can explain the hesitation that consumers have regarding the use of mobile payments transactions. These can help to explain why adoption of the technology has been as slow as it has.

The survey presented the participants with a number of different reasons from which they could choose, in order to explain why they would hesitate to use mobile payments for making purchases. The answers included – but are not limited to – the following:

• Over half (52 percent) are content with their credit cards and/or cash so they don’t see a need to change.
• 51 percent expressed concerns over mobile security in terms of financial and private data.
• Half didn’t own a smartphone.
• 40 percent didn’t trust the security of entering mobile payments information into a merchant’s device.