Reaching Into The Mobile Wallet Market
By Brian Albright, Business Solutions magazine
With no standards in place, VARs/ISVs will need to be creative to take advantage of the expanding mobile wallet opportunity.
PPoint of sale (POS) systems have undergone a number of transformations over the years, but the basic forms of payment have remained relatively stable for the past decade: cash, checks, credit cards, and gift cards. That’s poised to change as consumers begin adopting mobile wallet (or digital wallet) solutions.
According to Transparency Market Research, the mobile wallet market is expected to reach 1.6 trillion by 2018, experiencing a compound annual growth rate (CAGR) of 30.7 percent from 2012 to 2018. Falling smartphone prices and the adoption of near-field communication (NFC) technology at the point of sale will help drive much of that growth. That means POS resellers and ISVs have to prepare to support the technology in their solutions and develop creative ways to leverage mobile wallet technology to help their merchant customers expand their own services.
At a very basic level, mobile wallets simply provide the ability to pay for goods and services using a mobile device (usually a phone). Right now, such solutions take a variety of forms. Many large banks have mobile wallet products, but so do Google, Apple, and a number of start-ups.