The Future of Mobile Payments: Goodbye plastic. Hello mobile.
Source: CNN Tech & Pew Internet & American Life
It seems just yesterday credit cards became popular as a form of payment; one could have never predicted that a piece of plastic would have so much power over actual printed money. As we transition into the next decade, credit card methods of payment are slowly losing to an emerging form of payment: smartphones. According to a 2012 research conducted by Princeton Survey Research Associates International, 46% of the US population own smartphones. Furthermore, 65% told the Pew Internet & American Life Project they will embrace mobile forms of payments by the year 2020. These smartphone users have already begun to adopt this method of payment to complete transactions. The ease in obtaining smartphones and the rise of user friendly mobile applications has conveniently simplified the process for many who are now able to quickly adapt to activities such as mobile banking, online purchases, and planning. Yet despite the accelerated pace of phone banking, there are still some resistance when it comes to privacy and security. Proponents to this movement have raised such concerns when it comes to mobile payment technology, specifically in the manner of how financial data is stored. Many are quick to point out that government and organizations would have to work hard to ease the fears and gain customer’s trust before this would be fully implemented. There are some that believe that cash will never disappear because there will always be a demand.
Regardless of on what side of the fence you stand, one cannot deny that virtual payments, such as mobile and near field communication have made their introduction.
What barriers of entry do you foresee for your organization in transitioning to mobile technology?
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