Mobile payment technology has not met its expectations as it has failed to deliver in major markets especially in the U.S. market. Only ten percent of the consumers in the U.S. have routinely used devices to pay in stores.
Large technology companies and banks have invested heavily in encouraging the users to use mobile payments, which have helped to address the initial obstacles like lack of Near Field Communication-enabled devices. According to a survey by Cardtronics, most consumers agree to the fact that mobile wallets are easy to use but added that other payment method generally wins in regular payments.
The original idea behind introducing mobile payment for stores was to provide the customers with a payment method which is more convenient than toting cash to the stores. Apple introduced its mobile payments app Apple Pay, where users could pay using the face ID. Users have to double click on the phone’s side button for facial recognition. The users then have to wave the device near the terminal to authenticate the payment.
Even though the mobile payment method is quicker than other payment others, many users perceive that cash or card processing time is faster than mobile payment. Here are a few ways which can help in wider mobile payment solution adoption:
Ease of access: Mobile payment technology should be intuitive as many of the users are not tech-savvy. The process of mobile payments needs to be streamlined, which will bring uniformity to the interface of different payment apps across platforms, making way for mass adoption.
Security: consumers are afraid that cybercriminals could intercept their payment information as the mobile payment apps store a customer’s card and other financial details for the customer's ease of use. The users need to be aware of the fact that the service providers can only store financial details of a customer if they abide by the stringent security standards set by PCI DSS.
User adoption: Customers are accustomed to cash and card methods of transaction. Mobile payment service providers should facilitate a smooth transition by leveraging existing infrastructure and hardware. Companies can also use loyalty and rewards to encourage early adoption of mobile payment apps.
Many players in the tech industry who provide mobile payment solutions are working on innovative solutions like tokenization, fingerprint readers, and a variety of other solutions for an efficient mobile payment solution.