Digital wallets may drive mobile payments
July 17, 2013

More consumers are becoming aware of the benefits of mobile payments and using payments other than cash at the point of sale. In fact, a recent report from Business Insider suggested that many small and medium-sized businesses may soon see more customers looking to use their mobile wallets or ask if the retailer accepts mobile credit card payments. With integrated payment systems becoming the norm among U.S. merchants and SMBs and more consumers understanding the benefits of purchasing products with debit and credit cards, mobile payments are about to take off.

According to BI's latest analysis of on-the-go payments, consumers are increasingly looking to go wallet-free, opting instead to rely solely on their mobile device. The report suggested the increase in smartphone usage among American consumers will drive them to avoid traditional payments, such as paper and coins, in favor of more secure methods like plastic.

Marketing Week, an advertising magazine, stated the need to go cashless may not be the only driver of stronger mobile payment adoption. Instead, the growing penetration of loyalty programs in digital channels may make mobile wallets more appealing for consumers, as many already use their smartphone at the point of sale to redeem digital coupons or receive points for their purchases. 

BI forecasted that the total penetration of mobile payments in the retail market may be valued upwards of $1.5 trillion by 2017. The report suggested that while merchants will be an integral part of the widespread adoption of the purchasing method, more than 500 million consumers will use the payment option in the next five years. The move to a cashless society may be in the works as more customers become aware of the benefits of mobile wallets and using a card at the point of sale. 

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