Author: Stephen

Consumers are more comfortable with their cards than with mobile payments

Google, Samsung, and Apple may have trouble engaging consumers in various markets

Google, Samsung, and Apple have all entered into the competitive mobile payments field and are looking to compete with one another for the favor of consumers. These companies may be facing an uphill battle, however, as the majority of consumers are more comfortable using traditional payment cards than they are using mobile wallets. A new report from Juniper Research shows that the number of people involved in the mobile commerce space is growing, but consumers are still more willing to use their credit and debit cards.

Report predicts that 148 million people will be using mobile wallets by end of year

According to the report from Juniper Research, 148 million people throughout the world will be using their mobile devices to make a purchase in a physical store by the end of 2016. An estimated one in five point-of-sale systems in the United States now support NFC technology, which forms the backbone of mobile payments. The report also shows that there is a major uptick in the number of cards registered to mobile payment systems when they launch in new markets. When Apple Pay launched in China, some 40 million new cards were added to the service in just 24 hours.

Registering cards with mobile wallets does not translate into using new payment devices

Mobile Payments - Credit CardsConsumers registering their cards with mobile payments services does not mean they are actually using mobile wallets, however. The report from Juniper Research shows that just 22 million consumers in the United States have decided to transition away from traditional wallets to their mobile counterparts. Even with the availability of services that can be used with any point-of-sale system, consumers are still more comfortable with traditional forms of commerce.

Europe may be the most attractive market for mobile commerce

Companies participating in mobile commerce are becoming more focused on Europe, where payment cards have become more secure and NFC technology is already quite popular. Europe may serve as the tipping point for the mobile payments space, as consumers in this region are feeling more comfortable with paying for products with their mobile devices.

Vehicles could be the next great mobile payments platform

Honda believes that cars could have a place in the mobile commerce space

Cars may soon be the world’s next big mobile payments platform, according to Honda. The Japanese automaker has partnered with Visa to demonstrate a new payment service at the 2016 Mobile World Congress. During the event, Honda showed that applications could be embedded in a vehicle’s infotainments systems, which could then be used to make purchases. This may become quite popular among consumers, as it would allow them to make purchases without having to leave their cars.

Visa is making progress in making mobile commerce more accessible

Visa has been working on ways to streamline the way people participate in the mobile commerce space for some time. Over the past few years, the organization has managed to make it easier for consumers to make simple purchases. The company has also helped make mobile payments more secure through the Visa Token Service, which replaces consumer financial information with digital tokens that can be used to authenticate transactions. Together, Visa and Honda have developed a new proof of concept service that would effectively allow drivers to make purchases from their vehicles.

Vehicles could become the most convenient mobile commerce solution

Mobile Payments - Honda & Visa PartnershipConvenience is one of the most attractive aspects of mobile commerce. Being able to use a mobile device to make a purchase has become quite popular to consumers, many of whom already base much of their lives on their smartphones. These devices can be used to shop for and purchase products both online and in physical stores. With the new service from Honda and Visa, consumers may never to leave their vehicles to pay for products, which would turn vehicles into a new type of mobile commerce platform.

Driverless vehicles could benefit from mobile commerce services

A dedicated mobile payments service may be particularly useful for those with driverless vehicles. As these vehicles can operate themselves, passengers can spend their type shopping for and purchase products that they are interested in. They can do this with their mobile devices as well, but smartphones and tablets may have limited connectivity issues when traveling long distances. This is not typically true for driverless vehicles, as they are designed to make use of an expansive satellite network that allows them to avoid connectivity issues.