There are many arguments whether or not the mobile wallet will replace traditional forms of payment this year. Some perspectives believe consumers are not ready for digital payment while others argue that since mobile commerce was so popular in 2012, consumers are trusting their smartphones and becoming comfortable with making mobile purchases.
While it’s probable to say there will never be a universal mobile wallet, companies such as ISIS, Apple, and Google are investing in the future of digital payment. Also, MasterCard partnered with mobile interface C-SAM at the end of November last year.
Businesses such as Amazon, PayPal, Google and Starbucks are the reason consumers are opening up to the idea of using their mobile devices to make purchases. These companies are providing on the go, single-click, online checkout service that speed up the process for consumers without making technology too complicated.
With multiple options of the market, such as Google Wallet and Apple’s Passport, some questions arise when we think about using our phone as payment. Will it be safe? What happens if you lose your phone, will someone have access to your bank account? Will all businesses take this form of payment? Which one is the best?
Here is a summary of different options that you may have to take into consideration this year:
Google Wallet: Google Wallet is a free Android app on Google Play that turns your mobile phone into your virtual wallet, so you can tap and pay. Google Wallet uses near field communication (NFC) technology to transmit your payment details in a secure and wireless manner. You’ll receive a payment confirmation after you tap the contactless reader and then you’re on your way. When you shop online, just sign into your account and use your stored payment info to make a purchase. Also, the Google Wallet Pin feature encrypts storage of card numbers and has the ability to remotely disable a lost wallet.
ISIS: The ISIS payment system also uses NFC technology. The ISIS mobile wallet holds select payment cards, including American Express, Chase and Capital One. In addition the ISIS wallet holds loyalty cards (Kroger, CVS, ect). This version is also pin protected and can be remotely frozen if your phone is lost or stolen. Payment card credentials are stored on a special chip in the phone called the Secure Element, and constantly changing security codes are designed to prevent counterfeiting of your cards.
Apple’s Passport: While the Apple Passport is not quite a wallet, it almost is. Want to buy a coffee from Starbucks? The Apple Passport holds the Starbuck’s mobile payment application. Buying items from Target? The AP holds the Target Loyalty Card application. This app is intended to make payment easier. It’ also utilizes iPhone’s geolocation sensor to offer what it thinks you might need. For example: a boarding pass when you’re at an airport or a loyalty card when you step into a store. It may not hold credit cards, but it is very convenient.
While it’s unsure if digital payments are the way of the future, it is evident that large companies are rallying to perfect and popularize the idea of the mobile wallet. Whether or not 2013 is the “Year of the Mobile Wallet” only time will tell.
Source: Mobile Commerce Daily