Your mobile phone is becoming your wallet – 2011 year of Mobile Payments14 October 2011
Imagine waving your phone in front of a cash desk to buy fuel or food. Or zooming into the drive-thru lane and paying with a Smartphone instead of a credit card. That’s the promise of mobile payments, an emerging technology that will depend greatly on software, hardware chipsets in the phone, and an infrastructure that aids both merchants and consumers.
Mobile Payment market is entering into a rapid growth stage. Across the world, customers are embracing the technology as operators move from trials and testing phase towards commercial deployments. There has been a steady increase in the number of transactions for payment of digital and physical goods via mobiles.
Who will be for sure interesting in adapting this brand new technology:
– Handset Manufacturers
– Mobile Network Operators (MNOs)
– Mobile Service Providers / Merchants
– Financial Institutions / Banks / Credit Card Companies
As the penetration of smart phones increases, new opportunities exist for handset manufactures to monetize in the mobile payments market. Apple and Google are ensuring that they gain the early movers advantage with innovative mobile payment strategies. NFC enabled phones are also on the rise, further fuelling the market.
As customers adopt mobile payments, future of debit and credit card payments will change. I definitely believe that the “mobile wallet” will eventually replace the plastic card – but it’s going to take some time because consumer habits take a long time to change like it was with the outdated vinyl records. The end of credit card is coming, we will be witnesses of bringing payments forward from the plastic age to the digital age.