Mobile Payments: $58 Billion by 2017

On July 11, 2013, eMarketer reported that proximity mobile payments will top $1 billion for the year. The modern smart phone has become an all-in-one device for communication, games and Social Media – transitioning to financial transactions only makes sense. Bar codes, QR images and Near Field Communication technology enables customers to use their cell phones for scanning, swiping or tapping to buy products and services.

“Mobile Social Media is a Dominant Trend”

Gradually, merchants are adopting the smartphone point-of-sale transaction technology to increase the speed and options for purchasing merchandise. Just like the adoption of credit cards, businesses are likely to improve their service by accepting the payment systems preferred by their customers. The real-time availability of Social Media websites, like Twitter, have encouraged people to expect immediate responses. Now this expectation is advancing into the online financial payments industry.

As this point-of-sale technology matures, concerns over security and battery life will be resolved. The industry has not agreed upon one specific technology either. Mobile phone point-of-sale transactions grew by 226 percent in 2011. As cell phone users migrate to the higher-quality smartphones, adoption of this scanning technology will be more natural.

“Starting Small with Mobile Payments”

Retailers have started small with mobile point-of-sale payment processes to ease consumers into the new paradigm. Scanning technology has been used for large entertainment, sports and musical promotional give-aways. Users are more likely to try something if they can get something free or at a discount.

Near Field Communication adoption rates could be better with some major cell phone manufacturers not being fully on board yet. The concept of merely tapping your device or moving it within inches of a reader is very attractive. Businesses need to see the profit potential before they sign up.

As the scanning technology improves, consumers will gravitate to these devices much more readily. The future market potential is amazing as the trend is for smaller, faster and more immediate financial transactions. All the signs point towards the growth of the scanning, tapping and swiping mobile phone market.

Featured image courtesy of thomaspurves

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