Jun 25, 2013 Dave King
As more and more consumers begin to shift away from traditional financial services, payment methods such as ACH cards and mobile wallets are growing in popularity.
In fact, the mobile payment system industry is beginning to see increased competition and popularity, so businesses would be wise to incorporate this technology into their organizations to appease consumer demand.
With smartphones taking over nearly every aspect of consumers' lives, these people now want to be able to use their devices to purchase goods.
The industry is seeing organizations of all types begin to use mobile payments, from large banks to small start up companies. As competition heats up, companies are trying to find ways to stand out.
"It was a very simple solution, which makes it very difficult to develop differences," David Kaminsky, senior analyst for emerging technologies at Mercator Advisory Group, told the Los Angeles Times. "Now you see them trying to expand into these slightly more complex tablet systems."
Despite the increased popularity, Seth Harris, founder of Breadcrumb, told the source he doesn't think traditional registers will be replaced any time soon, but it is still essential for businesses to have this technology to keep up with competitors.
"I don't think cash registers are going away tomorrow, but as more and more consumers get plugged in, it's going to be necessary for business to adapt," Harris said. "It will get difficult for business owners to generate revenue without a tablet-based point-of-sale system."
Mobile payments are expected to grow in popularity significantly in the coming years, as the majority of Americans have smartphones. Research firm Gartner reported mobile transactions will reach $617 billion by the end of 2016, up from $171.5 billion in 2012.