Ballooning consumer demand for mobile payment alternatives has been convincingly illustrated in the last twelve months by the rampant growth of leading mobile payment providers.
Recognized as one of the best services for food industry professionals, restauranteurs, and retailers, PayAnywhere says its services are helping thousands of businesses maximize their earnings potential. And consumers like the added security and convenience that comes with trusted mobile payments services.
Nonetheless, challenges for the industry at large remain.
Although the mobile wallet industry isn’t growing as fast as some expected, the interest in new forms of digital payments is certainly there. That’s according to a new report from Yankee Group published this week.
Despite the fact that the U.S. mobile payment landscape is currently in a state of flux, two-thirds of consumers are interested in learning more about transitioning to a mobile wallet platform.
Unfortunately, that interest is “simply not translating into adoption.”
While traditional payment methods continue to reign supreme, a number of third-party mobile wallets are jockeying for position in the U.S. mobile payment landscape-but not all have the vision needed for long-term survival. To endure the inevitable wave of consolidation, a well-defined roadmap paired with patience and endurance will be among the many competencies required.
“With the hype surrounding mobile wallets building on a daily basis, separating the signal from the noise has become increasingly difficult. The harsh reality is that despite billions in investment across the ecosystem, adoption of such mobile payment technologies has been far from illustrious,” says Jordan McKee, Yankee Group Analyst and report author.
“Just 16 percent of mobile device owners have used their phone to make an in-store payment in the past three months,” McKee adds. “More concerning, of those using mobile wallets, 73 percent are doing so fewer than five times per month. Clearly, the way we pay for goods and services is not slated to change anytime soon. But although cash and cards may enjoy dominance for some time, with fully two-thirds of consumers remaining interested, it’s important to recognize that the mobile wallet is far more of a latent opportunity than a pipe dream.”