Smartphones are an extensive part of our everyday lives. Today, they’re more than simple devices for communication, but house important contents and tools that we may need every day. That may be simple apps, such as GPS app or a life saving blood pressure monitoring app. Mobile payments look to make us even more dependent on our phones, by replacing our credit card swipes with phones swipes. According to a recent study released by Juniper Research, mobile payments are expected to triple to $670 billion by 2015, representing 40% of all transactions. The introduction and eventual adoption of NFC technology and other mobile payment options, such as Square, will help drive these transactions. 2011 has been titled by many experts as the ”Year of Mobile” and the announcement of services, such as Google Wallet, appropriately point towards it. The majority of growth will be concentrated in American, European, and emerging Asian markets, specifically China.
Although the research numbers demonstrate tremendous growth, there should still be concerns over whether or not a solid mobile payment infrastructure can be established within that time frame. In North America, NFC/Mobile payments are just starting off. It will take time to convince merchants and vendors that people are willing and will continue to use mobile payment options. Mobile payments are convenient, but there is still a large segment of people that will be hesitant to opt into the system. Small transactions may see a jump, but larger payments may require shoppers to be more comfortable with the system. Consumers took quite a bit of time to ease into online payments, and m-commerce will take just as long, maybe longer.
Phone manufacturers and payment services will have to develop robust security measures that will convince consumers to switch over. With all the latest hacks that have occurred over the past several weeks, consumers will be extra weary of digital payments.