Is The Future Of Mobile Payments OS Only, No Apps?

By Christine Kern, contributing writer

The future of mobile payments is a “no-app” payment landscape, according to mobile engagement provider Mobiquity.

The company cites the Federal Reserve, which reports in 2014, 39 percent of consumers made point of sale (POS) purchases with their smartphone, and another 17 percent have paid for a product or service at a store using a mobile device, showing slow gains and far-from-widespread use.

In an infographic illustrating the current landscape and predictions for the future of mobile payments, Mobiquity shares additional statistics:

• 75 percent of consumers perceive cash/credit cards easier to use than mobile payment
• 45 percent of consumers and 39 percent of merchants worry about security
• 43 percent of merchants are concerned by the cost of needed upgrades

Robert McCarthy, director of security engineering at Mobiquity, stated in a press release, “With the introduction of tools like Apple Pay and Android Pay — and the fragmented environment in which mobile payments exist today — a dramatic change is inevitable. Today’s landscape is unsustainable for both consumers and merchants alike. Until the industry streamlines and standardizes processes, we will continue seeing patchy adoption, at best.”

Mobiquity contends in the future, mobile payments will be tied to native operating system instead of application.

To prepare for changes on the horizon, Mobiquity advises your merchant clients to:

• focus on infrastructure and to comply with standards such as EMV
• build loyalty programs, ensuring they are flexible and data is transferrable
• to become educated about consumer profiles and cater to their unique needs.

And these are all goals that you can help them accomplish.