The mobile payments space failed to find mainstream success in 2015
Last year, mobile payments managed to gain momentum, but failed to become mainstream. Several companies, including Apple, Google, and Samsung, introduced new mobile payments services in 2015, but interest among consumers has been somewhat limited. Indeed, these consumers opted to use an existing platform provided by PayPal to spend their money on their mobile devices. While mobile payments may not have gone mainstream in 2015, this could change this year, as new services become available and companies begin offering better benefits to consumers.
Many consumers remain concerned about the security of mobile payments
One of the reasons that consumers have been avoiding mobile payments is because they are not convinced of its overall security. In the past few years, major retailers have reported major data breaches, which lead to the financial information of consumers being compromised. This has sown fear among consumers, who believe that mobile payments services may be exposed to exploitation. As such, they have shied away from services, despite the availability of new technology that ensures the protection of consumer information.
Consumers want to see more value from the services that they use
Another problem that consumers have with mobile payments is that they do not see the benefit that services offer. While many services also function as a type of digital wallet, they do not consider the ability to store financial information valuable. Being able to take advantage of special deals being offered by retailers has added more attraction to certain mobile payments services, but consumers want more out of the products that they are using.
Supporting loyalty programs and improving security features may ensure the mainstream success of mobile payments
Companies involved in mobile payments may need to ensure that their services offer a worthwhile experience while also being able to keep consumer information safe. These companies will also have to show more support for loyalty programs, which have become quite popular among consumers. In doing so, these companies may be able to find more success in the mobile payments space in 2016.
Samsung Pay is, of course, not a copy of other payment services. The service features support of Magnetic Secure Transmission, which is why consumers do not need NFC-enabled devices to make use of it. This technology allows Samsung Pay to work in a way similar to existing debit and credit cards. Samsung believes that this feature can be expanded to make mobile payments more convenient for consumers throughout the United States.