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Mobile payments are a hit, but will further adoption be customer or merchant-driven?

December 20, 2012

Mobile pay had a big year in 2012, with a growing number of retailers and customers turning to the technology for holiday shopping.

Mobile pay had a big year in 2012, with a growing number of retailers and customers turning to the technology for holiday shopping. Mobile pay appeals to the wired generation, for whom smartphones are almost like a fifth limb. Proponents of the transaction method suggest that it simplifies payments for customers by reducing the number of cards they carry and better protects them against identity theft. Merchants benefit because data can be collected from mobile pay, revealing consumer trends and areas of spending, and further, a forward-thinking image is solidified. Mobile pay is likely to increase in popularity in the coming year, but as of yet it’s still unclear if the trend will be consumer or retailer-driven.

A variety of merchant services will be available to consumers, and although mobile pay is projected to increase, debit and credit cards will still hold sway for Americans. Industry insiders suggest that the best mobile payment solutions will be widely accepted at major retailers, support the majority of cards and brands and contain extended security measures to protect consumer accounts. To a large degree. merchants’ responses to consumer demands for mobile pay are in turn producing new individuals who wish to enter into mobile transactions. In that way, mobile credit card processing is likely to expand to more retailers and thus could produce new customers.

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