Slow Adoption Of Mobile Payment - 1235 Words

Slow Adoption of mobile payment: Recently, mobile devices has increase in the number of devices in the market and this has brought a lot of attention to mobile payments industry, in despite of this attention, mobile payments has not yet been adopted fully in the United States. While many think mobile payment will take off soon, there are barriers to overcome before the market makes the transition to mobile payments. First, the supply side needs to be examined, one of the actual problems is that there is not technological standards, different technologies exist when using mobile payments, including NFC, RFID, 2D barcodes, and WAP. Another barrier is the need of compelling business models, which means get all the†¦show more content†¦Understanding both sides, supply and demand , will give providers the power to decide which technology standards to adopt, what fees to charge and what mobile applications they can use to replace traditional payments methods. Fragmented Market: In order to replace cash or plastic credit cards, consumers need to feel confident they can leave their physical wallet at home. The mobile payment market in the United States is so fragmented that there are no clear standards and the idea of having consolidation and partnership within the big players of the industry is far from being possible. The mobile payment has become a prize that everyone wants to win but no nobody is willing to give up on the race. Far from winning, consumers are the ones who suffer the consequences, they are sitting and waiting until the big players agree to standardize the process. This year (2014) Apple tried to standardize the industry by introducing Apple pay instead they â€Å" highlighted the squabbles between retailers and the banking and payments industry.†10 Since its debut, a coalition of merchants led by Wal-Mart, Target and Sears called MCX have said they would not use Apple pay and instead they are promoting its own system called Curr entC. The main reason why retailers are not using Apple pay is â€Å" to avoid what they believe are excessive swipe fees and the cost of upgrading hardware and software to accept