Check out this awesome new infographic showing the power of mobile phones taking over payments with mobile payment. Soon your mobile phone will be able to pay for all your consumer goods without having to use your chip and pin ever again.
Could mobile phones soon replace credit and debit cards as the preferred payment method for millions of Brits? Mobile wallets are set to grow in popularity after the first service that allows consumers to pay for goods using a mobile phone was launched in the UK in May. It seems to have been the talk in recent times that your mobile will be your new virtual wallet and this year, if you’ve seen recent adverts and the like that this new technology called ‘near field communication’ (NFC) – a system of short range wireless technology will soon change the future. Users wanting to pay for goods using their mobile phone will need a Barclaycard and Orange account as well as an enabled handset, such as the Samsung Tocco Lite.
Users can preload their mobile phone with cash (typically up to £100) and then use a contactless payment system (nicknamed Quick Tap) to pay for goods and services up to the value of around £15. Several retailers have already signed up to the system including Subway, Wilkinson, McDonalds, Boots, Prêt a Manger, Little Chef, Eat and the National Trust. David Chan, chief executive of Barclaycard Consumer, said: “Having a wallet on my phone has made it much more convenient to make purchases on the move and I like that it allows me to keep track of what I’m spending as I go.”Pippa Dunn, vice president of Orange agrees that the technology will have huge benefits. She said: “It is going to start a revolution in the way we pay for things on the high street.”
Back in the Dark Ages (about 25 years ago) if you wanted to pay for something you have a very few ways to do it. There were 3 fundamental payment methods: cash, check, or if you were very progressive and had great credit – a credit card. Online banking didn’t exist. Debit cards had yet to gain any popularity at all, and the idea that you might pay for groceries using your mobile phone (which had the appearance back then of a modified brick) was unheard of. It seems things have changed drastically in the future of just about everything. Our parents and grandparents (unless very clued up) are still trying to come to understand how the power of digital and online is the new age. If we go to most supermarkets there is a lot of self service machines and are soon to be coming to retail outlets as well. The key to the growth of these electronic transactions is the security and widespread availability to process the transactions with high speed data connections and hardware which specifically recognizes the magnetic stripe data and associated PIN code. However, the delivery of the secure information behind electronic transactions can now be facilitated wirelessly and securely. In fact, worldwide mobile payments for digital and physical goods will reach almost $630 billion by 2014 according to Juniper Research. Additionally, the top three global regions for mobile payments – Far East and China, Western Europe and North America – will represent nearly 70 percent of the global mobile payment gross transaction value by 2014.
It’s a rather scary though that technology is rapidly changing and that our mobile phones will do more than just play apps, send emails and make calls. It’s an interesting and scary thought but I’m looking forward to seeing the changes. Bring it on.