2011 – Mobile payment era begins

A lot of rumours….and research by f.i. Forrester say that the era of mobile payments will have a lift off in 2011. With the launch of Near Field Communication (NFC) and other mobile payment tools customers will gradually switch to the mobile device to make their payments.

The how and why…easy the different technologies which are available will augment your mobile device to a paying device. Off course this will have a huge impact on commerce (on- and off-line).  A payment is becoming easy, fast and ecological! A short round-up on different available technologies:

  • Near Field Communication: The Near Field Communication protocol makes your mobile device an active wallet. You just swipe your phone at a payment terminal and you’re done! No hassle with cards or other transactions
  • Square, or other App supported payments: For App supported payments you need to download the App to the smartphone and use it to pay. Again easy and fast going, but more action is needed in this scenario. (f.i.) Starbucks has successfully launched his mobile payment service in January.
    Square is a bit different. You download the square-App and order the free Square device to plug into your mobile phone.  With the Square device you swipe your regular credit card to pay. The payment runs through your mobile phone/device, but still needs a traditional card.
  • Visa, American Express, PayPal… and most major credit cards are working on different technologies to facilitate mobile payment…

2011 will be the launch path for mobile payment….Android and Blackberry have NFC services already incorporated in 2011-models (40 to 50 millions sales projections for 2011). Look at the presentation at Mobile World Congress in Barcelona this year.  Apple will probably have NFC on the iPhone 5 (to launch this year)…..which means consumers will be able to pay mobile (at least the early adaptors)! The huge challenge will be at the business side of society to have NFC terminals available to pay at! Salt Lake City equips his public transportation with the NFC technology, and the London Olympic Games (2012) will probably embrace NFC as well, … but we need a major shift in traditional retail to facilitate this new way of paying!
AND we need one standard NFC payment protocol, no 12 and so one different systems….one clear NFC technology. But as always a lot of competitors need to enter, and one will survive (cfr. Betamax/VHS – HD DVD/Blue Ray – …) Time will tell which one survives!

The mobile retail experience….as you recall is the future, and this is a step into this future.

Inspired by Thomas Husson (Forrester Research), Erika Morphy (E-commerce Times) and Christina Warren (Mashable)

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Posted in Flat Business
2 comments on “2011 – Mobile payment era begins
  1. […] See original here: 2011 – Mobile payment era begins « Flat World Business […]

  2. Bart Ufkes says:

    The NFC concept is very interesting in my opinion. Paying for your groceries by simply sliding your phone over the payment terminal would be very fast and would make a bank card obsolete. I’ve read some posts on the internet about tests being performed by simply adding a cover with an integrated chip to your phone that will make it possible for any phone and it shows that it might be in the near future.
    My only concern is, and also of many others, is the security of the system. With simply holding your phone a few inches away from the terminal, it will recognize your chip and therefore your bank account information linked to it. How difficult would it be for someone to invent such a system that will connect to your chip while walking past you and transferring money from your account to theirs?

    If you would have to enter your pin code at the terminal, the idea of fast payment (making the card obsolete) would be gone..

    The idea of mobile payment is there and it already sounds good but they just have to develop it a little further to ensure the security of it.

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