REPORT: Mobile Payments Set to Triple

by Jordan Richardson on July 6, 2011

According to a report from Juniper Research, mobile payments are set to nearly triple by 2015. What that means is that more and more consumers over the next years are expected to turn to their cell phones and not their credit cards or debit cards to do transactions at the grocery store, beer store or wherever.

We’ve been talking extensively about the varying types of mobile payment software floating around. The battle for market share is expected to be quite intense, with credit card companies, banks and telecommunications giants all jockeying for position.

RIM is putting field technology on its new BlackBerry, for instance, and Google and Visa have come up with different digital wallet designs to help consumers keep their money where their mobile is. “Consumers and merchants are changing the way they buy and sell,” said Michael Bradley, head of products for Visa Canada.

The idea, says Bradley, is to save consumers that precious, precious time. No longer will consumers have fumble through the disappointing action of opening a wallet or entering a credit card number. A simple swipe will do the trick and customers can get on their way to more spending, more shopping and more debt.

Visa in particular has been looking to expand its market share for a long time. They want to be the payment method of choice, of course, so it stands to reason they have a vested interest in growing new mobile payment opportunities with consumers and corporations.

Convenience, too, is a factor.

Michael Gokturk, chief executive officer of Payfirma, believes that customers in Canada will do fine with the new technology because they’re so quick to adapt. Companies will follow suit. And why? “How many times have you forgotten your wallet or purse at home?” he said. “But I bet you never forget your phone.”

With this mentality and approach to mobile payments, the possibilities are endless. Routine traffic stops could be transformed because a driver’s license, no longer in that “forgotten wallet or purse at home,” could be on your smartphone. All sorts of other vital information, from birth certificates to social insurance numbers, could all be held on a smartphone. After all, what could be safer?

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Written by: Jordan Richardson. Follow by: RSS, Twitter, Facebook, or YouTube.

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