|First leaders emerge in budding mobile wallet industry|
Visa and PayPal top the list of consumers' preferred mobile wallet providers at 15% and 13%, while mobile network operators Verizon and AT&T (with the Isis wallet), and Apple, are close behind, according to a new report from Javelin Strategy & Research.
To become a valued mobile wallet provider, consumers consider three important factors-trust, innovation, and privacy. A balanced approach of the three is more important to consumers, as PayPal and Visa have demonstrated with high scores in all three categories.
Financial institutions are well positioned to leverage their customers' high perceptions of privacy protection, trustworthiness, and even innovation to become mobile wallet market leaders.
While mobile payments and mobile point-of-sale purchasing experienced little adoption, there is a growing pent up demand from consumers as new mobile devices and technologies enter the market. Over 60% of mobile bankers are likely to adopt a mobile wallet in the next 12 months.
"Consumers have spoken, and the primary bank relationship and the payment networks, such as Visa and PayPal will be a key part of any widespread mobile wallet," says Jim Van Dyke, president and founder of Javelin.
Providers will also have to determine which mobile point-of-sale technology-NFC, cloud, and bar code-to use. In the near-term, bar codes and cloud-based wallets will proliferate, as they do not require mobile phone upgrades or merchant investments in terminals and systems.
With Apple’s iPhone continuing to be redesigned and re-imagined, and as other new devices follow, it is expected that NFC chip technology will prevail as it offers the convenience of paying with a simple tap or wave of the phone.
“NFC faces significant barriers to adoption by merchants and consumers, but it is standards-based technology that will eventually prevail as the main mobile point-of-sale technology,” says Mary Monahan, executive vice president and research director, Mobile at Javelin. “Google was first out the door with NFC and has stumbled. When Apple enters the payment space with NFC, we expect Apple will lead the way and others will follow Apple’s lead.”
In the report, Javelin profiles Isis (Verizon, AT&T, and T-Mobile), Microsoft Wallet, Google Wallet, PayPal, Pay With Square, MasterCard PayPass Wallet Services, V.me by Visa, and American Express Serve.
[This article was posted on September 18, 2012, on the website of ABA Banking Journal, www.ababj.com.]
| TechTopics Plus