Mobile Payment Development at a Standstill

The momentum of mobile payments, which seemed so great only a year ago, seems to have slowed to a halt. Other than a few minor announcements, such as the recent partnership of Isis and a number of financial institutions, little has come of the excitement for mobile payments. One explanation:

The infrastructure is pretty efficient and secure for mobile transactions,” said John Partridge, the president of Visa, in an interview. “But getting the chips in the phones in the U.S., the NFC capability and point-of-sale installs have been slow to move in the U.S.

All of these transitions should accelerate in the next two to three years,” he said.

However, another issue is that the success of mobile payments requires the cooperation of companies from industries that traditionally never intersect, such as MNOs and FIs. Although it is a slow process, it is still moving. Mobile payments will come, just not as quickly as previously hoped.

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