In two of my earlier posts on mobile payments, I talked about disruptive innovations in the mobile payments landscape and how the impending EMV deadlines could impact NFC adoption. In this post, I will continue to dwell on the disruptive innovations in mobile payments technologies, focusing on the raging iBeacon versus NFC debate.
Real-time payments could be moving a step closer to reality under pressure from forces both inside and outside of the financial services industry, say BAI Payments Connect 2014 panelists.
In this fast-paced, highly mobile, Internet-everywhere world, it’s not surprising that U.S. consumers and businesses have come to expect their transactions to post in real time. And soon, industry insiders say, they might finally get their wish.
Read more at BAI Banking Strategies
What comes to your mind when you think of the future of electronic payments?
Would you use your phone /nfc card/mobile wallet/ or something else?
What are the key parameters when you dream about the future?
According to the new 2014 Trends to Watch report from analyst firm Ovum, consumers will lean most towards mobile payment and digital wallet services associated with financial brands.
This is supported by Ovum’s Consumer Insights Survey, which shows that 43% of respondents chose banks as their most trusted mobile payments service provider, followed by credit card companies (13%), online payment providers (9%), and then mobile operators (6%).
Will NFC or Cloud-based apps prevail? As debate centers on that question, alternatives lurk behind the scenes.
So, where are we with the much-ballyhooed digital wallets?
If there’s an overriding theme to this technology space, it’s disagreement. For starters, there’s little consensus on what actually constitutes a digital wallet. Features vary from wallet to wallet and there’s no dominant brand in this field. In fact, many of the biggest players are completely unknown to the average consumer.
The philosophical battle is “push” versus “pull” but the check-out experience is all
I believe the defining technical debate around the future of retail payments is the philosophical battle between pull and push. As I wrote here, there is a deep difference between paying at a shop with cash and paying with a card. Here’s what I mean:
This weekend I paid with PayPal in the physical store. There are a handful of stores in the UK that now accept PayPal payments, and while I’ve seen the demos, this was my first time to actually go through the process myself. And I have to say, it’s not something I will be looking to experience in a hurry again…
The good news: the payment worked, first time. Which is more than what I can say about my NFC experiment with QuickTap wallet from Orange (EE) and Barclaycard. There, my experience has been very inconsistent – sometimes it works like a dream, other times it doesn’t work at all. The worst is when it’s not even clear if it worked, and at least one of us, either me or the merchant, is left scratching our heads if we ended up short-changed, either by paying cash or card or by assuming the payment did go through. None such problems with PayPal – the payment went through and I got instant acknowledgement of the Transaction.
Much has been said about the mobile revolution. That device that never strays far from our side has infiltrated almost every aspect of our lives. In tandem with the soaring use of smartphones, mobile technology itself has progressed at lightning speed, giving more power to consumers to access information, connect, discover, research and buy with the swipe of a finger. And this technology is becoming increasingly available – analyst house Gartner published research showing smartphones are consistently outselling feature phones – out of 435 million mobile phones sold between April and June 2013, smartphones accounted for 225 Million.
I can’t say I was too surprised to see that Swedbank has scrapped its QR-code payment initiative.
While the scanning of a QR-code could feasibly be used to trigger any function or transaction that can be executed on a mobile device, when it comes to payments it fails to match up to the many more convenient options that are available to consumers and retailers.
Read more at Finextra
Are QR codes at a dead-end?
I should of course have added to the looking back at 2013 post – that the new direction for mobile payments also made a breakthrough. When it is realized that mobile payments should be payment receiver initiated in order to produce full value the speed in this direction will take up dramatically.