What to make of the confusing mobile payments game
Now that retailers have been ‘encouraged’ to accept chip-and-PIN cards, transactions have become a little more annoying. Until recently we all would have agreed that it was easier to just pull out your card and swipe it. Mobile payment apps actually provide for a marginally faster transaction process than swipe (0.4 seconds faster to be precise) and are a little friendlier. Especially since everyone in the check-out line is staring at their phone anyway! Not to mention the reduced need to carry a wallet.
Credit unions are bombarded every day with propaganda that indicates mobile is the place to be, and if you don’t have a mobile plan, you will not be able to survive in the ‘new economy’. Data however suggests that only about 4% of consumers actually use mobile payments today, and that only 13% of consumers have actually attempted a mobile payment. The early race for mobile payments is all about adoption: The company who wins early adoption stands be the leader in a potential billion dollar business.
Not to be left out, Chase Bank announced last week that they are joining the mobile payments game with Apple, Google and Samsung in line at the cash register. Chase Bank is certainly not the first but they are arguably the biggest: 1 out of every 2 household’s is a customer – according to Chase. They also claim to be the overall number one payments processor. Chase’s plan is to double-down on ‘reach’, meaning they are partnering up with Wal-Mart and other large retailers to drive mobile app adoption.continue reading »