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Mobile electronic payments a promising but slow developing market

Jul 25, 2013 Dave King

Mobile electronic payments a promising but slow developing market

Financial institutions of all types have been exploring mobile payment technologies recently. As consumers become more invested in their mobile devices, banking and nonbanking firms are looking to capitalize on Americans' reliance on smartphones.

Although there is an optimistic outlook regarding the number of flexible solutions and services that mobile payments offer, many retail outlets may be slow to adopt the technology. recently interviewed Keith Stone - an enterprise financial expert - about the future of mobile transactions. He indicated that without a uniform platform, it's unlikely that businesses will adopt mobile transaction systems in large numbers.

Partially, it's a result of healthy competition in the industry that has resulted in numerous companies battling for control of the market. Also, the fact that the technology is still relatively young means that the services and hardware that come with mobile payments are still being developed. Most of these solutions require a number of new devices for merchants to purchase, which Stone named as one of the major barriers to rapid adoption.

For this reason, many large corporate retailers have found it challenging to integrate on the go transactions, as they have to invest in additional platforms for a number of different stores. As a result, Stone speculated that mobile payments companies will focus on providing more comprehensive, streamlined solutions for bigger firms that will include online payments services.

NFC for fast food

Near Field Communication (NFC) systems have been marked as being some of the most promising mobile payment portals on the market. According to MCommerce News, the platform may be a perfect fit for the quick service restaurant sector.

The source speculated that NFC solutions that work by tapping mobile devices connected to financial accounts on transaction hardware could speed up the fast food industry.

Apart from providing consumers with more options to pay for their products, NFC technology could be adapted to enhance customer satisfaction. MCommerce News noted that the service could easily be linked to customer loyalty programs or enable users to customize orders on their smartphones.

Despite the slow adoption of mobile payments by many industries, the technology is expected to catch on sooner or later. With such adaptable configurations possible and the growing use of on-the-go products, consumers will most likely be willing to use smartphone transaction systems that provide an increased level of convenience.