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Mobile payment adoption to skyrocket, according to experts

April 27, 2012

According to many industry experts, mobile credit card processing is likely to replace traditional cards and cash as the primary payment method over the next several years.

According to many industry experts, mobile credit card processing is likely to replace traditional cards and cash as the primary payment method over the next several years.

A poll conducted by the Pew Internet and American Life Project revealed that two-thirds of those surveyed said that the smartphone-based payment method would account for nearly all transactions by 2020. Those within the sector say that the adoption is simply the next step in the evolution of how consumers pay for items.

“We have already witnessed the transition from cash to debit [and] credit cards,” Microsoft engineer Christian Huitema told Pew. “The electronic wallet is not much more than a ‘virtual card,’ in which near-field wireless communication replaces the reading of a magnetic stripe.”

However, other studies have shown that many consumers are still ready to use mobile phones for financial operations. A Lightspeed research study found that 80 percent of 10,000 people said they didn’t want to use smartphones for financial management. Just one in four said that the ability to engage in mobile banking was “very important.”

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