Public Is Slow To Embrace Mobile Payments

Friday, December 23rd, 2011

The fast-advancing mobile payment industry seems poised to transform how shoppers complete purchase transactions. However, due to consumer security concerns and the cost to retailers of implementing the necessary hardware at the point-of-sale, many speculate that it will still be a couple years before pay-by-phone transactions really take off in America.

Throughout 2011 the news has been full of reports about the burgeoning mobile payment market as companies such as PayPal, Visa, MasterCard, American Express and Google, along with several cellular service carriers and assorted start ups all vie for position in the lucrative up-and-coming digital payment sector.

In fact, there are many big-ticket retailers getting on board with mobile phone payments by partnering with payment processors and banks in order to give their customers the option to pay for items at the point of sale by tapping their phones in lieu of swiping a card. However, experts predict that this new method of paying for purchases will not really catch on until a couple of years down the road.

A recently-completed study conducted by global professional network KPMG revealed that currently only 23% of consumers indicate a willingness to pay by using their mobile phone as opposed to other payment options.

While shoppers in larger cities such as Chicago, New York and San Francisco are increasingly open to paying for goods and services by phone, estimates have been that it will take anywhere between 2 and 4 years before widespread adoption elsewhere in the country.

The biggest obstacle faced by the new payment method is consumer concerns about security and safety. Champions of mobile payments will have to convince consumers that paying using their smart phone is easier and at least as secure as using cash, debit or credit cards.

“Multiple things must come together. Mostly, consumers need to have the right amount of knowledge and education about the technology, and retailers must be able to accept mobile payments,” said Richard Mader, head of the technology division of trade group National Retail Federation, according to Reuters.

Another hurdle, in addition to security issues, is the cost for retailers to install contactless payment terminals and the availability of such devices for consumers to use. Presently in the United States there have only been approximately a half-million NFC readers installed in retail point-of-sale locations.

However, the research firm Aite Group predicts that pay-by-phone transactions will reach $2.1 billion in 2012 and soar to $22.6 billion by the year 2015.

Latest Low APR Credit Card News

Tuesday, July 19th, 2016
The prize for Army Credit Union of the Year goes to PenFed Credit Union this year, as the PenFed branch in Fort Hood, Texas is recognized for distinguished service at the Defense ...
Saturday, February 20th, 2016
As 2016 picks up steam and rolls into February and then March, it can no longer really be called a new year. Still, it’s early in the year, and there are surely many surprises ...
Tuesday, January 20th, 2015
Understanding how credit card interest is calculated is important if you want to be more educated and use your credit card more effectively. Here we’ll explain how most credit ...
Tuesday, March 5th, 2013
While MasterCard announcing MasterPass, a digital service that lets cardholders pay with most mobile devices, and Visa and Samsung are announcing a global alliance to accelerate ...
Friday, November 23rd, 2012
Flint Mobile Inc. introduced its new iPhone app that allows retailers to accept credit card payments by just scanning the card number.
Best Credit Offer
Check off the cards you want to compare. Then click the Compare link to go to the comparison table.
Consumer Rating: 4 / 5
Pacific Credit Group Emporium Black Card
Copyright © 2001-2016 All Rights Reserved.

* The webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the website are property of their respective owners. makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that may be compensated by the credit card issuers when the readers apply for a credit card through this site. is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. does not review or list all available financial or credit offers.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.