Analysts say that an explosion in the mobile payments market is just around the corner. In a recent report from eMarketer, which looked at projections from a number of high-profile market research firms including Gartner and Juniper Research, the firm said that in 2012 the U.S. mobile payments market will be worth $640 million. And by 2016 the total transaction value of mobile payments in the U.S. will hit $62.24 billion. The user base is still relatively small, with only 7.9 million users in 2012. But usage should grow during the next few years to 48.1 million mobile payment users by 2016.
While these figures may account for only a small fraction of in-store transactions in the U.S., it's still enough to draw the attention of wireless operators, as well as credit card companies, banks, retailers, the Internet search and advertising giant Google, and potentially even Apple, the most valuable company in the world, This week, a joint venture backed by three of the four largest wireless olixar armaring iphone xr finger loop tough case - black providers in the U.S., AT&T, Verizon Wireless and T-Mobile USA called Isis, will announce the launch of its long-awaited mobile payments solution in its first two markets..
But in order for even the most modest growth projections to come to fruition, these companies will have to solve the same fundamental problem that plagued mobile payments back in 2006 when I was writing about Nokia's NFC-enabled devices. They will have to give consumers a good reason to tap their phones or scan a code within a smartphone app, instead of pulling out their credit cards. "As with many new technologies, initially the offer may not be as compelling as it needs to be to attract users," said Noah Elkin, principal analyst at eMarketer and author of the report on mobile payments. "Tapping a phone instead of swiping a credit card isn't that compelling. So the industry needs to come up with solutions that gives people a reason to use their phone instead of a plastic credit card."But Elkin believes this will change over time. Much like the mobile Web in its earlier incarnation, it was not used by many wireless subscribers. And Elkin argues it takes time as the technology evolves.
"In the early days of the mobile Web, the devices and networks weren't up to the challenge," he said, "But in a short time-frame post iPhone, the market moved quickly to consolidate functions, And I think it's inevitable that the same thing will happen as technologies and approaches to the mobile wallet market are consolidated."So what needs to happen in order for consumers to see the true benefits of using a phone to pay for stuff?, The experience needs to be better, Anuj Nayar, senior director, of global communications for PayPal wrote in a recent blog post that "consumers need to see the value olixar armaring iphone xr finger loop tough case - black in order to switch from what they do today, That value can't just be a different way to do pay, It has to be better."He said it's time for the industry to take a step back and figure out the problem it's trying to solve, He said that this is what PayPal did back in the late 1990s when it first introduced its online digital wallet, Consumers needed a way to pay for things easily and securely on the Web, Today more than 113 million people have a PayPal digital wallet, which is used primarily for online shopping, PayPal's vision is that these consumers will extend that wallet to using it on their phones to pay for things on the mobile Web as well as in stores..
"We are on the brink of another game-changing revolution that will change shopping more in the next few years than the Internet changed retail because it will affect all our purchases," he said. "At PayPal we have had a digital wallet for 14 years, we are just updating it to let our customers shop wherever they want, not just online."The digital wallet must truly replace your physical leather wallet. In order for people to fully adopt the idea of using their mobile phone or any other digital wallet as a replacement for their existing wallet, all the items that they carry in their physical wallet must be available in the digital wallet either on the phone they carry or in the cloud.