As the mobile phone evolved from basic voice communication device to a multifaceted lifestyle accessory, making payments has become a key element within that evolution. The mobile device, be it a smartphone or featurephone, can now be used to make payments.
The value of global payments via mobile devices will reach around $507 billion this year — that’s an increase of nearly 40 percent year-on-year.
The U.S. mobile payment landscape is progressing very slowly. Although two-thirds of American consumers are interested in learning more about transitioning to a smartphone wallet platform, that interest is simply not translating into adoption.
While traditional POS payment methods reign supreme, a number of third-party mobile wallets are jockeying for position.
Contactless payment technology is applied when the user fulfills a transaction by tapping a card or mobile phone handset against a Chip & PIN machine, rather than swiping a debit or credit card through the Point of Sale (POS) terminal.
Contactless transactions via mobile handsets will exceed 9.9 billion globally by 2018 — that’s up from just over 3 billion this year.
Major retailers can no longer solely rely upon their in-store point-of-sale (POS) terminals for transactions. They must quickly evolve their POS strategy to offer both online and mobile payment options to customers.
Retailers that offer multiple payment options — including a mobile checkout facility — will be able to serve more customers and reduce loss of sales due to the busy shopper’s reluctance to wait in line.
Over the past five years contactless payments have emerged as a means by which both retailers and network operators can gain tangible benefits. This advantage comes from reduced operating costs and increased sales — with greater consumer throughput at the point of sale (POS) terminal.
Juniper Research has found that 249 million cards will be used for contactless payments in 2014.