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Mobile payments a growing consumer trend

June 28, 2012

According to many experts, although mobile payments are continuing to gain popularity, companies need to make the system easier to use for consumers to achieve rapid adoption.

According to many experts, although mobile payments are continuing to gain popularity, companies need to make the system easier to use for consumers to achieve rapid adoption.

Daryl Colwell recently wrote in AdAge that mobile payment systems had to be made simple for customers and also give them incentives to use the system. He writes that firms would benefit from showing the methods “added value rather than a neat marketing trick.”

Despite the fact that only 20 percent of people surveyed by IDC said they had used mobile, the sector is expected to experience significant growth over just the next few years. According to an estimate by the Yankee Group, mobile payments will total $1 trillion by 2014.

However, some are still skeptical about whether or not the significant investment is worth it.

“For marketers, this hype-vs.-reality conundrum presents a dilemma: invest in a new form of digital commerce that has significant potential but little consumer interest, or wait to see where the market (and consumer) goes,” Colwell wrote. “For those brands that were burned because of their reticence with the Facebook “fad,” the latter option may not be all that appealing.”

Many of the largest payment brands in the country are convinced that the relatively new merchant services method will be profitable. PayPal recently unveiled its “Here” mobile payment system, implementing it in well-known franchises such as the Home Depot.

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