Mobile is increasingly the preferred way that many people access the internet, spending more time on smartphones or a tablet than on a traditional desktop or laptop computer. As a result, mobile commerce is growing very quickly.
- The Operating System wins – Mobile proximity payment capabilities are embedded in the member’s mobile device. Apple Pay and Google Wallet have the ability to integrate the wallet and payment capability into other aspects of the OS and seamlessly upgrade and evolve the offering.
- NFC is here – NFC (Near Field Communication) is now built into nearly every smartphone, it provides a simple, common interface, and in a few years nearly every merchant terminal will be NFC capable.
- It’s the user experience – The single most important factor in changing consumer behavior and accelerating adoption of mobile proximity payments is the user experience. It has to be as good as or better than the member’s perception of their user experience with other payment types.
- Cards aren’t going away – Mobile proximity payments will not replace payment cards for a very long time, if ever. In fact no form of payment has ever gone away in the history of payments. Mobile proximity payments are an additive process and while superior to plastic cards in many ways, a very large number of consumers are perfectly happy with their plastic.
Source: Aite Group