More efforts being made to push mobile payments adoption

Category: Payment Processing Technologies

Over the past few years, mobile payment technology has rolled out to consumers slowly but surely. Likewise, widespread adoption of these payment platforms has ticked up at a low but steady rate. As a consequence of what is an encouraging trend, there are now efforts underway to boost that kind of adoption to an even more rapid pace.

One of the ways in which the payments industry as a whole is moving to deal with the rate of adoption for mobile payment platforms is by focusing in on promoting it more heavily, according to the U.S. Payments Forum. That entity, which oversees a number of aspects of the payments ecosystem, recently announced the Contactless Payments Working Committee as a means of looking for ways to better get the word out about the benefits of mobile for both consumers and merchants.

Mobile payment adoption might soon begin to build serious momentum.Mobile payment adoption might soon begin to build serious momentum.

What will it look like?
In much the same way as previous efforts to boost EMV adoption relied heavily on making connections with cardholders and retailers, so too will the mobile initiative, the report said. That includes holding seminars and workshops, releasing white papers and infographics, and seeking input from all involved. The hope is that by doing so, the retail industry as a whole will be able to make mobile payment use more ubiquitous than it already has been.

"Just as we are doing with the U.S. EMV chip migration, our goal as an organization is to provide concrete, usable guidance to make new and emerging payment technologies a reality in the U.S.," said Randy Vanderhoof, director of the U.S. Payments Forum. "With the U.S. Payments Forum being the only forum bringing together all the payments industry stakeholders including merchants, issuers and the mobile community, the Mobile and Contactless Working Committee is uniquely positioned to develop implementation guidance and help the payments industry to be better equipped to implement contactless payment technologies."

Is it already working?
However, it's worth noting that many experts already see positive trends in mobile adoption, according to Business Insider Intelligence. Already, total in-store payment volume on mobile platforms is projected to have more than doubled from 2015 to this year, and that's a trend that should continue for the next several years. By 2020, the total value of those purchases could reach about $503 billion, up from only about $75 billion this year, meaning a compound annual growth rate of about 80 percent during that time.

Part of this adoption effort includes readiness among merchants to take on point-of-sale devices capable of accepting mobile payments, but a large number have already done so. For that reason, those who have made the switch already might be wise to promote their capabilities a little more heavily than they have, and those who aren't caught up yet may want to consider the benefits of doing so as soon as possible. The more that can be done to get both consumers and merchants on board as soon as possible, the safer the payments ecosystem will be going forward.