Gartner Says Mobile Payments Set for Massive Takeoff by 2018

Just how much momentum does the mobile payments industry have? Perhaps more than we thought. In fact, half of consumers in mature markets are likely to be tapping smartphones or wearables to make mobile payments by 2018, according to market research firm Gartner Inc.

Innovation in apps, mobile devices and mobile services are impacting traditional business models, especially with regard to how people use personal technology for productivity and pleasure, Gartner analyst Amanda Sabia said in a statement.

"Product managers must understand who their customers are for these new devices and services, and how the products are being used,?EU? Sabia said. ?EU?Knowing your customer is imperative in order to capture a fair share of spending opportunities in this dynamic marketplace."

Why NFC May Suffer

There are three types of mobile payments or mobile wallets on the market now. Beyond the smartphone and wearables sector that features Apple Pay, Samsung Pay (pictured) and Google Pay, there are also branded mobile wallets from retailers and banks or credit card companies. Starbucks, for example, was one of the first to roll out its own mobile wallet.

Apple, Samsung and Google, though, may not gain as much traction as the other two mobile wallet types in the short to midterm. That?EU?s because the near field communication (NFC) technology on which they operate lacks widespread partnerships with retailers, financial institutions and even consumer adoption.

?EU?Any mobile payment wallets that are tied to the device will have limited adoption and only if the device has a huge installed base," said Annette Jump, research director at Gartner. "Instead, cloud-based solutions will have a better chance to succeed as they can reach a wider audience and can support many use cases beyond face-to-face or in-store options. Also, mobile payment and mobile wallet adoption requires a country-by-country rollout plan with an enabled payment infrastructure and...

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