As the world of technology continues to grow at leaps and bounds, mobile payments for consumers could be the norm before too far down the road.
A recent study from KPMG International notes that 83 percent of some 1,000 executives in differing fields (tech to retail) think mobile payments will be the mainstream before the end of 2014. Of those surveyed, 46 percent thought paying via phone will be the norm within two years.
According to a spokesperson for KPMG, the belief in the company is that ever-increasing smartphone growth and a variety of opportunities will grow mobile payments at a much quicker rate than respondents anticipated.
Given that several technology providers either currently provide or are debuting mobile payments, along with the fact consumer interest is increasing, that 2014 timetable certainly seems doable.
Google recently went public with news they have built an open platform for mobile phones to transmit and obtain payments using Near Field Communication (NFC) technology.
The search engine giant has already teamed with the likes of Citi, Mastercard and Sprint, with word coming that most phones will employ NFC technology by 2014. Google is also testing out Google Offers, which will allow consumers to transfer coupons and deals right to their phones.
Other companies are also hot in production of mobile phone platforms, including Microsoft and Apple, while AT&T, Verizon and T-Mobile announced late last year that they had formed Isus, a collaborative project including several prime banks. Isis, a nationwide mobile commerce network, will allow consumers to use their mobile phones to complete point-of-sale purchases.
The bottom line for those not entirely up on tech happenings is that your phone and wallet or purse will essentially be one and the same. The phones can be used at movies and other approved events to essentially purchase tickets and then check in.
The question for many phone users, both business and personal, is will they have to buy new phones in order to take advantage of the NFC technology? No, while most new phones will employ the NFC technology within the chip, that same technology can be added into one's SIM and SD cards.
For businesses, this just means one more technological advance to stay on top of, as more and more consumers want easier and quicker payment options. For many companies, this should translate into more business, so welcome the change with open arms. Otherwise, you're bound to get some customers who complain about still having to use an actual credit card to make a transaction.
Then again, there still remains a fair amount of people like myself who still don't have an ATM card, still use one-hour photo services, and don't use direct deposit.
Change comes hard to some of us!
