What stands in the way?
Public knowledge has it that by the end of this year, mobile payments will have seen a jump in double its current transactions. Even with this impressive prospect though, it remains to be seen for about 4/5 of the population i.e US to have even tried a mobile payment method like Apple Pay.
People, quite rightly have to worry about security in all facets of their lives, especially money. The ongoing litany of high profile retailers who have had their customer’s data stolen has downright prevented plenty of people from placing their trust in mobile payment technology entirely for now. The era of increasingly deviant cybercriminals has ensured that every single internet-related activity creates its own security issues. For there to be widespread adoption of mobile payments, there will need to be the creation of secure transactions that is able to forge trust among customers. Ironically, smartphones, that which has raised security concerns themselves, will be able to serve security goals simply by helping to authenticate users. Data encryption will also prove to be a pillar in providing additional data protection and to further encourage mobile payment adoption.
“The reality is that until common interfaces are defined, based on current standards users will not properly engage in m-commerce. Only then will consumers see the benefits of using their mobile phones as an ‘electronic wallet’ that allows them to conduct transactions more conveniently than more traditional channels”, says Raomal Perera, CEO of Vita.
This will then, of course, negate the need to always install new software in order to make purchases around the globe. Once the purchasing process has been simplified, there will be a spark in innovation, which Visa is now trying, with its Visa’s Digital Enablement Program (VDEP). It is also key to note that other payment giants like MasterCard and American Express are also coming together in order to make headway in this scene.
Fragmented mobile technology
When considering mobile payments, there are a few options at hand: NFC, code-based, and cloud-based payments. Each option poses a different set of pros and cons which can make it difficult to settle on anyone for a set period of time.
The key to this for retailers is figuring out where the majority in their customers place their preferences with, NFC or cloud/code-based systems.
People are just too set in their ways
While there are people who always embrace change brought about by time and advances in technology, there will always be a segment of the population that are pretty set in their ways and are way too comfortable with the current banking system because they find it more secure and are of the opinion that the current state of affairs is less complicated than mobile payments. Not forgetting the numerous benefits and incentives that these non-mobile payers are subscribing to, with the help of the current debt and credit system.
Our mobile payment options are bound to increase and even diversify. Companies and innovators alike are going to have to work around some of the problems that the payments arena poses. Let us all look forward to the interesting developments that are coming our way, be it cryptocurrency, biometric payments, or even facial recognition. The end game, of course, is safety and convenience.