Mobile payments in 2013

This week for “Wireless Wednesday” we’re talking about mobile payments for the year 2013. Fierce Wireless just wrote a great article about this exact subject last week. Check out the excerpt from the article pasted below–

In the early 1900s, the burgeoning automotive industry created a sort-of gold rush, with a variety of players chasing a piece of this new market. With that, explained Yankee Group principal analyst of mobile money, Nick Holland, some players would fail, some would be acquired or vanish into the ether, and a select few would succeed.

The current state of mobile payments is also a gold rush, Holland said, and the product that scales the best for all, not necessarily the best technology, is the one that will succeed.

Indeed, mobile payments are already a multibillion-dollar industry.

Forrester Research issued new data predicting that U.S. mobile payments will climb to $90 billion by 2017, a 48% compound annual growth rate (CAGR) from the $12.8 billion spent in 2012. Last year Gartner predicted that worldwide mobile payment transaction values would surpass $171.5 billion in 2012, and Juniper Research predicted global Near Field Communications retail transactions alone will grow to $110 billion by 2017.

The way the mobile payment ecosystem is currently set up has most of the major players in one of two camps: vendor-driven or user-driven initiatives. The vendor-driven approach includes companies such as Square and PayPal, which offer devices to attach to a vendor’s phone to process credit and debit cards. On the other side there are the user-driven mobile payment services like Isis and Google (NASDAQ:GOOG) Wallet, which incorporate mobile payments as a part of an ecosystem. With these, a business isn’t forcing you to use this technology, rather it’s another option to pay for items.

“One is when the phone becomes a surrogate for the card, and one is when the phone becomes a surrogate for the terminal,” Holland said.

It’s difficult to predict whether mobile payments will become the norm. The situation is further stymied by the fragmented nature of the ecosystem and the number of players vying for a piece of the market. Thus, it makes much more sense to compare the players to others within their own camp, and to look at whether that camp at large will succeed.

What do you think about mobile payments? Are they something that you would use, or do use? Let us know in the comments, or on Facebook/Twitter.
To read the rest of this article or to see it in its original format, click here.

One thought on “Mobile payments in 2013

  1. I really think this latest article from Fierce Wireless is just yet another example of proof about how mobile payments are going to be the preferred method of payment in years to come. Some analysts forecast a cashless United States. With new technologies are new security issues however and that’s something that definitely needs more attention. I personally don’t use mobile payments just yet simply for that reason. Someone can steal my phone and use my credit cards, and I would prefer more protection before I start doing it. Some countries are already trying to eliminate cash entirely. It interests me to wonder how it will all play out.

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