Paying for goods using mobile phones could become the norm in as little as four years, with 83% of respondents believing this to be the case, according to a survey of 1,000 financial, technology, telecommunications and retail executives by a top global audit firm. In fact, 46% said that mobile payments could become "mainstream" in just two years.
The 2011 KPMG Mobile Payments Outlook additionally noted that "72% of the executives said that mobile payments are now or will be reasonably important in the future, with specialist online systems building on its leading position as a payment method, and m-banking and near field communication (NFC) gaining significantly greater traction than today. 58% said they have a mobile payments strategy in place."
Specialist online systems was indicated to be "online payment processing systems such as Google checkout and PayPal," while m-banking identified as "direct access to bank services and information via the mobile device" and NFC as "short-range (millimeters) wireless communication technology that enables exchange between devices, such as between a cell phone and a point of sale device at a checkout counter."
Further, the survey revealed that, while the majority indicated consumers to be "currently" concerned with security and privacy when using mobile devices, other factors were identified as "more compelling" in terms of a successful mobile payment strategy: "Specifically, 81% believe convenience / accessibility is the highest attribute, followed by simplicity / ease of use, at 73%, security, at 57%, and low cost, at 43%."
Another key, although not unexpected, finding, "business leaders, globally, view security as the main challenge to developing mobile payments strategies. Technology and adoption of the technology is a distant second, followed by privacy."
Also, survey respondents signalled likely first adopters in this area: "Banks, which scored the highest in level of importance in the value chain, and credit card companies will have the most important roles, according to business leaders globally. They placed telecommunications companies third, ahead of specialist online payment players (e.g. PayPal, Boku, Obopay), online service provider giants (e.g. Google, Facebook, Amazon), retailers and technology companies."
However, respondents indicated that the competitive edge in this area undoubtedly favoured specialist online systems because "this method already has significantly greater penetration than alternatives, and its penetration is expected to increase."
Meanwhile, according to KPMG Europe Technology Sector Head, Tudor Aw, the "M-Wallet is one of the most exciting and promising payment opportunities [providing] the momentum to move beyond payments to participate in the entire chain of mobile commerce, from consideration and brand awareness to purchase after-sales loyalty and care." The M-Wallet was described as using mobile devices as a "wallet with account and transaction information stored on the devices’ SIM card." |
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