How Mobile Payments Are Going to Take Over Other Payments Options in 2015
The benefits of adopting and using a mobile payment solution are crystal clear for both merchants and customers. We know that mobile payments are fast, easy, secure, affordable, cheap and plenty other features do they have. But the question is whether or not is the tap and pay technology going to take over this year, 2015. Or will we have to wait a couple more years, perhaps till 2019?
For mobile payment technology to dominate the market there is one thing for sure though: there is a dire need of awareness about the technology, the procedure, what stores have it, why merchants should adopt it, et cetera. Without that awareness, no matter how many technologies like Google’s Wallet jump into the play, they are not going to pull it over. Not even after 3 years of being in market.
# Apple Pay is a breakthrough
Many payment analysts say and deem Apple Pay’s launch to be a breakthrough for the future of mobile payments for good reasons including Apple’s influence will make a great impact over technology’s awareness. That’s probably why Deloitte’s Technology, Media & Telecommunications (TMT) Predictions annual report predicts there to be more than 1000% increase in-store payments worldwide this year.
Apple is a huge brand and influences millions of lives. Although Apple Pay works only on iPhone 6 and iPhone 6 Plus, limiting the total number of users by a large margin. In the same way, Google’s Wallet can only be used on Android KitKat. Another limitation is lack of NFC-compatible devices.
From Apple Pay’s case, we understand that mobile payments still have a long way to go. iPhone 6, iPhone 6 Plus and Android KitKat are only ways to pay via phones. Sure, there are other ways, but to talk about major players that’s it. Plus, there is a lack NFC-compatible smartphones.
# Lack of awareness
A survey conducted before last holiday season reported that 30% of Smart Phone users intended on utilizing Apple Pay and Google Wallet for paying in-store payments last vacations. But most of them just didn’t know how they worked. The survey also reported that 69% of respondents say they were uncertain about what stores accepted mobile payments. “I was surprised at how many [in the survey] were planning to use ApplePay and Google Wallet, but that’s an aspirational number,” Thiago Olson, CEO of Stratos Inc. explains. “People don’t realize they can’t use Apple Pay on their iPhone 5.”
“Two different things need to happen: People need to be educated [about where they can use mobile payments], and there needs to be a change in the acceptance infrastructure. Right now only 3% of merchants in the US can take contactless NFC … but that will go up with the EMV liability shift.
# What about public interest?
A survey conducted last December found that nearly half of UK customers would be prepared to leave if their current bank was unable to offer mobile payments and neither had any plans to do so. Which clearly shows that public is highly interested into paying via their mobile devices, but unfortunately lack awareness.
Survey conducted by Stratos, Inc. also reported that most people (exactly 37%) wanted to switch to tap and pay method to eliminate the worry of losing or getting credit or debit card stolen. So clearly, public is interested but as noted above there is a desperate need to educate customers and merchants about the features of mobile payments, procedure and giving them a WHY.
# How mobile payment will be in 2015?
So how exactly is mobile payment technology going to do in 2015? That’s the question that led you to read whole article, right? Okay, now that we have gone through the market, trying to understand the possible obstacles for mobile payment in 2015, we list the obstacles:
- Lack of awareness
- Better security; NFC security
- Less NFC-compatible devices
Public interest is at its best, but lack of awareness about the benefits of using or adopting a mobile payment solution is the problem. Also there are a couple of NFC-related security concerns among lack of NFC-compatible devices.
So that’s it. Answer is: If lack of awareness and doubts of potential users of technology are resolved in 2015 (which is unlikely in 1 year), then the future is already here. With Apple being in the market, the chances of awareness being an issue at the last of this year are lowest. So all the best Apple Pay, Google Wallet and all those concerned about the mobile payments solution!
This article was written by Syed Irfan Ajmal. He is a serial entrepreneur, a columnist and certified inbound marketer. He curates content at http://boloro.com