The mobile payment sector is evolving quickly and chaotically, with incumbents and startups competing for not only market share but also the ability to establish the business’ rules and technological standards. With consumer acceptance expected to reach critical mass in the next two to three years, early successes will define the landscape of mobile payments for years to come.
This Sector RoadMapTM identifies and explores five major Disruption Vectors in the U.S. mobile payment space. We define Disruption Vectors as the business and technological developments that will markedly change the landscape over the next two to three years, and in this sector they are disintermediation, contraction, integration, migration, and ownership. This report identifies some of the mobile payment solution providers that are likely to emerge as significant contributors to mobile payment adoption. It explores which technology platforms are positioned to become the most commonly used form of mobile payments and which industry segments will be driving mobile transaction growth.
Key findings from this Sector RoadMap include:
- The mobile payment market continues to be a fractured environment in which no single clear technology or set of business standards have been developed and widely adopted.
- Mobile security and fraud risk are not currently major concerns with consumers or retailers, as the convenience and promise of the mobile experience trumps the fear of any potential breach.
- A focus on utilizing the unique functionality of the device will ultimately drive consumers to adopt mobile payments in critical mass as m-pay becomes easier and more functional than card pay.
- Disillusionment with the payment and financial services establishment is driving a desire to go back to the basics but in electronic form as e-cash solutions proliferate and gain momentum.
- The ideas of value exchange as a community activity and payments as a language are fueling the advent of social commerce, where social media intertwines with m-commerce.
Source: Gigaom Research