My latest blog for TechCrunch tackles a problem we’re seeing too much of lately: What happens when mobile payments don’t work how we’d like them to (and sometimes don’t work at all!)? Studies show that at the end of 2016, mobile payments in the US will go up 210 percent, and yet many businesses are still struggling to get on the bandwagon. According to eCash, just 20 percent of people in the country with an iPhone that’s Apple Pay-friendly has even given it a whirl.
What’s our problem? With mobile payments being easier than ever, why aren’t we keeping pace? The possible reasons are endless, from humans shying away from new tech to a touch of Luddite-ism lingering, but a bigger problem might be the fact that money exchange in the mobile era has been broken for a long time.
Here are the biggest hurdles:
- Security (or lack thereof): Humans worry about security, and dealing with monetary transactions heightens those concerns. According to an eMarketer survey, 57 percent of internet users in the US say security issues are why they don’t want to use mobile payments.
- Global standardization: Here’s another pickle we’re in—what about compatibility at a global level? There are no common interfaces around the world, so using a phone as a wallet isn’t easy to see. A global standard will help with this obstacle. Plus, traveling abroad with no global standard is no walk in the park.
- Mobile wallet app struggles: When an app isn’t working or isn’t high quality, the solution should be to uninstall it. However, that’s not always easy. These subpar apps can take forever to go away!
- Fragmented mobile tech: There are upsides and downsides to all mobile payment options, and the sheer selection can be overwhelming. If you have a device that came with an already installed option, why change it? It’s a lot of work to research and find the best app for you.
- Creatures of habit: We have well established habits and they’re tough to break. If you’re okay (not necessarily excited) about your current system, why change it? We need tempting incentives to put in that kind of effort.
Mobile payments might be convenient in an ideal world, but there’s plenty of space for improvement. It starts with peer-to-peer payments where you can send money quickly and easily (think Venmo and Due.com). Eventually, mobile payments will replace credit/debit cards, helping to consolidate our “wallets.” By using centralized awards points, we can get the right kind of incentives in place to ensure a mass switch. Plus, how we donate to charity will change—HandUp is an example of a startup that’s on the right track. Finally, we’re already on the way, but virtual banks will totally dominate over brick and mortars. In a few decades, physical banks may cease to exist.
Right now, the biggest task at hand is security, and companies like Android are already making big waves in the right direction with host card emulation. From bitcoins to blockchain, there are many innovations currently available that are helping re-define mobile payments.
Read the full article here:
