Published Date : Jul 20, 2016
The extensive use of smartphones has led to the adoption of alternative modes of payment. A rise in the use of mobile data usage is also boosting the adoption of mobile wallet. Mobile wallet services are increasingly becoming popular among people due to the convenience they offer. It allows for payment without the intervention of cash, and are thus preferred. The mobile wallet technology is increasingly being adopted in developed nations in Europe and North America. The growth in the mobile wallet industry is also encouraged owing to the various initiatives by government. Moreover, they are convenient and eliminates the use of paper, and thus eco-friendly.
Security Issues and Lack of Awareness to Inhibit Adoption of Mobile Wallet
The technology is relatively new for some countries and thus, it has still not gained the trust of customers. Lack of awareness thus, makes this technology less preferable for people. Security issues pertaining to financial credentials of customers will also be a cause of hesitation for customers to adopt the technology.
Increase in Production of NFC-enabled Smartphones to Drive Demand for Mobile Wallets
The production of near-field communication enabled smartphones has led to an increase in the adoption of mobile wallets. An increase in the point-of-sale POS terminals is also driving the demand for mobile wallets. Further, new players entering in the mobile wallet market are revolutionizing this technology and making it compatible with mobile payment solutions. Mobile wallets can serve the purpose of complete financial management and remittance services. Thus, the global mobile wallets market is expected to grow at fast pace in the coming years.
Personal identification documents can be verified with mobile wallets. Mobile wallet facility can be integrated with authentication programs, thus serving a dual purpose of mobile payment and authentication.