The entrance of Internet retail giant Amazon into the mobile payments space should cause concern among other mobile players, but it should not cause them to close up shop, according to Forbes columnist Erika Morphy.
There is a way for them to compete in the near term. In the longer-term some unexpected trends are poised to emerge that should ensure enough market space for everyone – everyone offering more than just basic payment acceptance technology that is — in this industry.
At this time, mobile payments don’t provide enough of a convenience to get people to switch over from cards. It is just as simple if not simpler, to swipe a card as it is to open up an application and tap or scan a phone at the point of sale. And with a card, the shopper does not have to stop talking or texting and actually interact with a clerk.
Successful programs do exactly with Morphy describes, which is providing a more complete service that goes beyond just a payment. While the increase in contactless adoption after EMV will doubtless help the growth of mobile payments, extra value will be required to get shoppers to truly change their habits.