The phrase “if you build it, they will come,” may be the just what the mobile payment industry needs to really take off in the U.S., according to a recent Computer World article.
Credit card companies have given U.S. retailers until October 2015 to upgrade their point-of-sale (POS) terminals to be near-field communication- (NFC) ready. The upgrade is necessary in order to make credit card mobile processing payments via contactless smart cards and smartphones with NFC chips possible.
According to Computer World, the U.S. currently has only 200,000 of the newer POS terminals in place, representing a small fraction of retailers. Merchants who don’t adhere to the deadline set by American Express, Discover, Visa and MasterCard will be subject to penalties.
The new terminals will not only provide more opportunities for consumers to utilize mobile wallets, but they will also increase credit card security and possibly reduce fraud, as the chips used are not as easily compromised as magnetic stripes are.
The fact that more mobile wallet applications are becoming available may also boost consumer use. In fact, ISIS, a mobile commerce joint venture created by major wireless providers, recently launched its Mobile Wallet application in Austin and Salt Lake City.