Daily Dose of iQ: Mobile Payments Outlook for 2015

On Saturday (Jan. 10), MobileROI’s Puneet Mehta wrote a guest blog post for VentureBeat, outlining his outlook for mobile payments in the New Year. It’s not all rosy,” he writes.

Some interesting stats include:

  • Apple reports that 1 million people are already using the Apple Pay mobile-payments system it launched in October.
  • Whole Foods, an Apple Pay early adopter, processed more than 15,000 Apple Pay transactions” in the first couple of weeks, according to the New York Times.
  • Apple Pay helped make Google Wallet more popular: In the month following the Apple Pay launch, Google Wallet transactions jumped 50%, and the number of new users doubled.

Issues preventing mobile payment adoption in 2015:

  • Persistent fragmentation: e.g. CurrentC, Square, PayPal.
  • Lack of a(two) clear winner(s): For widespread adoption, one or two power players that capture widespread consumer participation and work across different operating systems will need to be accepted universally,” Mehta writes.
  • Retailers adding coupon/​loyalty functionality to mobile payment: Mehta insists mobile payment technology should primarily streamline the checkout process. Until retailers take the thought out of it, adoption, engagement, and advocacy will suffer.” (We’ve blogged about Walgreens making Apple Pay clunky.”)
  • Hacking will scare consumers away: CurrentC was hacked before it even launched, and large retailers continue to be targeted.”