New study highlights the potential decline of debit and credit cards
Experian, a leading information services and credit organization, has predicted that there will be a major shift in commerce in the coming years. The company has released a new study that suggests that mobile payments will be in wider use than debit and credit cards by 2020. Mobile commerce has been gaining momentum over the past few years, powered by the aggressive adoption of smartphones and other devices in prominent markets.
Survey shows that a growing number of consumers are showing interest in mobile transactions
According to the study, mobile payments are growing particularly quickly in the United Kingdom. The study includes results from a recent survey that Experian held, showing that one in three respondents believe that they will be using mobile payments more than other forms of commerce in the coming years. Nearly half of the respondents noted that they were ready to fully embrace mobile commerce systems that made use of biometric technology. This technology uses biologic information, such as a fingerprint, to protect mobile devices and transactions.
Credit cards and cash are losing their luster among consumers
The survey also showed that 40% of respondents believe in the decline of credit cards, with 70% believing in the declining use of cash. Mobile payments are seen as very convenient for consumers that have begun to base much of their lives on their mobile devices. New payment systems allow consumers to make purchases using nothing more than their smartphones, and retailers are embracing mobile commerce in order to better engage these consumers.
Security remains a major issue for the mobile commerce space
While mobile payments are expected to become more prominent in the coming years, there are still many challenges facing the mobile commerce space. One of these challenges has to do with security. Several companies that support mobile transactions have recently been targeted by malicious groups that want to exploit the financial information of consumers. Without adequate security measures, the growth of mobile commerce may lose steam.
The new payment system that the National Payments Corporation of India is launching is meant to provide a unified infrastructure for organizations interested in mobile payments. Using the system, businesses will be able to receive money from a mobile device, using a single identifier, such as a phone number or virtual payment address. The system will not rely on bank account information, though users will have to actually have money to send if they want to make use of the new infrastructure.