What if it was possible to pay for your goods via your mobile device rather than using your debit or credit card? It may sound far-fetched to some, but shoppers may soon be paying for goods and services through their iPhone. Leading companies such as Amazon, Apple, Google, and PayPal are already vying to become solution providers of a standard mobile payment platform.
According to a recent study by Vocalink, a payment provider in the UK, over half of smartphone users in the UK stated they would possibly switch to mobile payments if supermarkets offered such a service. Additionally, 35 percent stated they would likely use mobile payments if a service was provided by their bank. Finally, 62 percent of current mobile payment users mentioned they would make even more mobile payments if their bank provided such a service.
Erdolo Eromo is a senior vice president for Payvia, an online and mobile payment company. “[Mobile technology] can have an imprint on society that can last for generations, and it’s profitable,” says Eromo. He’s hoping that his early entry into mobile payment solutions will yield big dividends in the future, much like PayPal did in the 2000s. His company saw its 2012 revenues increase by 400 percent.
MasterCard is being proactive in this new area via their MasterPass service, which aims to use enabled devices (i.e. your smartphone) to “shop from anywhere,” yet mobile payments still do not remain the standard way to pay. Something has to change, and the answer could be staring us all right in the face.
Some analysts believe that banking institutions and retailers can convert shoppers into mobile payment customers by allowing them to experience the convenience of payments through their cellphones. By checking out at the grocery, one would no longer need to pull out his or her wallet. They’d simply confirm their purchase through manual entries on their phones.
According to a Convenience Store News (CSN) article, one topic dominated the discussion at the 2013 CIO/Tech Summit held in Chicago in April 2013: mobile payment. Owners, executers, and supply chain consultants attending the technology forum are bracing for a world in which smart devices will increasingly replace cash, personal checks, and credit cards. In the future, such capabilities could be upgraded to enable customers to verify identity, exchange car insurance information at accident sites, or provide digital signatures at hospitals.