Slow Progress on Mobile Payments by 2012

Mobile news… By 2012, operator partnerships will start a partial small-scale mobile payment and Apple will have a big role on wallet apps according to some analysts and the acceptance of mass-market will escape that division.

Payments on mobiles and the Near Field Communication (NFC) were full of disappointments this year, 2011.

According to a group director of ABI research, John Delvin that, “There has been progress, but not as much as people had hoped for. We now also have a number of handsets with NFC, albeit a small number, and not as many as people were saying there would be at the start of the year,”

According to them that Google Wallet was expected to hit the market by 2012, but this won’t alarm the industry though it is not far along as expect but instead, still moving forward.

“I remember speaking to a number of operators in the May-June time frame and they were still very much convinced that companies would pay them to carry their cards. Their mindset was that if Visa doesn’t pay them MasterCard will. That was quite a blinkered strategy,” said Delvin.

He also stated that Google changed its strategy in starting the Google wallet; they have encouraged operators from some countries like UK to associate with them forming one platform.
Operators will be launching commercial services to compete with Google and their associated operators next year. Verizon Wireless which was a member of the Isis payment venture appealed to Google requesting not to equip the Galaxy Nexus with Google Wallet app on operator’s version.
“It is about being first to market right now and the likes of Verizon will be very wary that if consumers start using Google Wallet it is going to be very difficult to change them from that in the future,” Delvin said.
According to ABI, that payments and mobile wallets must be everywhere, transferable and interchangeable for it to be able to have a long term relationship with NFC but no one could give any opinion for now. “But eventually they will find a “happy medium,” which will serve Google and the operators, as well as consumers” Delvin said.

CCS Insight which was a research company predicted that Google will give live announcement in UK on 2012 though Google haven’t announced of their motion yet on other countries.

“But the competition with Google isn’t all bad. That different large companies enter the space helps show that it is a legitimate market” said Jaymee Johnson (Isis Head Marketing)

Isis will establish bases on Salt Lake City and Austin, Texas and launch services sooner on mid-2012.

“In those two cities, consumers will be able to walk into a carrier retail store and choose between multiple smartphones, load their choice of mobile payment card onto the phone, and then use the mobile payment system at both national chains and local stores… Eventually, Isis will have nationwide coverage, but real scale won’t come until 2013 and 2014” said Johnson.

About 34 million to 80 million smartphones will be shipped with NFC by next year. It will grow more by 2016 about 552 million according to ABI.

According to CCS Insight that payment system will be the source of NFC success and by 2015, payment efforts will follow.

NFC is not the only technology we can use in payments, Paypal also announced about their interest on using barcodes and will be using it by 2012.

Apple will be expected to make strategies and launching services and grab market share from operators by 2012 according to some analysts.

Senior Analyst Mark Beccue of ABI announced, “Apple will launch a mobile wallet product in 2012. Apple’s operator partners will allow Apple to offer their mobile wallet to consumers who have iPhones, regardless of whether or not the operator has a competing mobile wallet,”

iPhone5 will be expected to be equipped with NFC for iTunes payment according to CCS insight.

eMobileNews.net (c) 2012


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