Online, mobile payments set to take off in next few years

In recent months there has been a large push on the part of businesses in a number of industries to generate a variety of different payment and account management platforms for portable devices, and that is expected to increase significantly in the next few years.

Everything from mobile wallets to card readers that turn any mobile device into a credit card reader are coming to the fore with greater frequency as more business pour into what they see as a lucrative market, and this push will likely be a boon for both consumers and participating companies, according to a report from The Economist. Smartphones and, to a lesser extent, tablet PCs are now seen as the future of financial management and even computing in general, as consumers are more on the go, and need quicker access and convenience when dealing with their various accounts.

What’s Causing These Changes?

The smartphone in particular seems as though it will become extremely important to millions of consumers within the next few years, the report said. Recent research suggests that by the end of 2011, close to half of all mobile phones users in the U.S. had a smartphone, up from less than 20 percent just two years ago.

“It is a device that can link the online and offline worlds,” Zilvinas Bareisis, an analyst at the consultancy firm Celent, told the magazine. “The smartphone gives such a rich experience that we are playing games on it, we are tracking stars, so it is a natural extension to check your bank account or even make a payment.”

And that trend is likely to fuel shipment of these devices significantly, the report said. A study from KPBC and Morgan Stanley recently showed that nearly 500 million mobile devices, of which more than 400 million of them were smartphones, were shipped in 2011. That number will likely climb to 600 million, with more than 500 million of them being smartphones, this year. By the end of 2013, it’s believed that there will be nearly 600 million smartphones shipped, with another 100 million or so tablet PCs.

The hurdle for the businesses pushing mobile financial transaction platforms won’t be adoption of smartphones, but rather of the systems themselves. Most experts believe that, like mobile banking, adoption will begin as a trickle and grow exponentially from there.

Posted in Finance
Learn how it works

Questions about credit repair?

Chat with an expert: 1-800-255-0263

Facebook Twitter LinkedIn