US banks are changing the way they look at mobile commerce
Banks in the United States have shown strong interest in mobile payments, but not those being made in physical retail stores. With the launch of new mobile payment services, such as Apple Pay, many banks have taken steps to become more mobile-centric, offering more support for mobile commerce and mobile banking. Many banks do not see the value of in-store mobile transactions, however, as a minority of consumers actually use their mobile devices to pay for products in a store.
Majority of mobile transactions are not made in retail stores
According to Niti Badarinath, senior vice president of mobile and payments with U.S. Bank, nearly 80% of all mobile payments are done outside of stores. These payments are being done online or they represent money transfers from one consumer to another. U.S. Bank, in particular, wants mobile payments to be part of a larger value chain, which includes special offers from retailers, loyalty programs, and mobile coupons. Many banks are likely to revise their approach to the mobile space as their plans for mobile commerce change.
QR codes and other barcodes may become more popular than NFC technology
Jeff Kaufman, president of retail services with FirstBank, suggests that cameras may play a larger role in mobile commerce than any other technology. According to Kaufman, QR codes and other barcodes are becoming more common in the field of mobile payments. From 2015 onward, it may be more likely for consumers to use these barcodes for mobile payments than it will be for them to use NFC technology. Nonetheless, NFC technology currently makes up the majority of the mobile payment infrastructure and may not be so easily replaced by other solutions.
No mobile payment services have yet found mainstream success
There are a wide range of mobile payment services currently available to consumers, very few of which are offered by banks themselves. Notably, none of these payment services have yet found mainstream acceptance. Even Apple’s own payment service, called Apple Pay, has not become a mainstream platform despite the company’s strong following.