Currency Is Dying: Why Mobile Payments Are The Future

by Joseph Walent 0

The article conveys a certain level of inevitability of impending extinction of cash, wish in some regions is indeed fast becoming a reality (Nordics). That said, the use of mobile payments is increasingly being recognized as the more convenient way to pay, but the requisite comfort level with the technology and reforming of payment habit has not followed all that closely. However, in more cases the discomfort brought on by the longer transaction times are coming to outweigh the various fears ( e.g. of the unknown, of ID theft, etc.) associated with use of mobile wallets.

Retail brands who were early adopters of mobile pay are reaping the rewards, seeing efficiency increase alongside revenue. As we continue towards a cashless society, marketers need to invest in mobile payment now, or risk losing out to competitors in a big way.

Getting mobile payments right has been an ongoing process for many businesses, with companies trying their own way, or imitating one that has had success (like Starbucks). As mentioned in the article, integrating loyal programs with universal payment methods is a significant objective, but we disagree with the author’s allusion that it has been achieved satisfactorily. Mercator Advisory Group examined some of the strategies of integrating payments and loyalty employed by businesses in its report Merchant Mobile Wallets: Mobile Payments in Action.

Overview by Joseph Walent, Senior Analyst, Emerging Technologies at Mercator Advisory Group

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