Deloitte’s annual report named smartphone mobile payments as its top technology trend of 2015 — beating out other emerging trends such as 3D printers, click-and-collect retail locations and the Internet of Things — a term used to describe devices that communicate with each other. By the end of the year, it expects one in 20 smartphone owners to have made a mobile payment with their phone.
The end of 2015 will mark the tipping point for the use of mobile phones for near-field communication (NFC)-enabled in-store payments în Canada, according to Deloitte’s 2015 Canadian Technology, Media & Telecommunications (TMT) Predictions. In 2015, about five percent of the 600 million NFC-equipped smartphones worldwide will be used to make an in-store NFC payment at least once a month, more than a 1,000 percent increase from 2014, making its way to Canada at the end of 2015.
In-store mobile payments in the Canadian market are likely to be slower than the US, depending on when various payment services are introduced, but 56 percent of Canadians are not interested in paying with a smartphone*. It remains to be seen if they will change their minds.
Despite the upsurge, contactless mobile payment will not be mainstream by end-2015, but niche adoption will be a major progression from near nil in prior years, says the consultancy.
„We expect the volume of NFC-smartphone transactions and the range of spend value to increase steadily over time as consumers become more familiar with the process, and more banks and merchants in more markets accept this form of transaction,” states the report. „However, contactless mobile payments will likely co-exist for some time with all other means of payment, from contactless credit cards to cash. It will be a long while before the majority of us can jettison our physical wallets.”
The familiarity Canadians already have with using credit cards to tap and pay, whether in a coffee shop or at the drugstore, will make it easier for consumers to transition to using the same technology with their smartphone. „They think: ‘If I’m doing it with my credit card, why not do it with my phone? It’s basically the same,” said an Deloitte representatives.
“Canadian smartphones are already being used to check balances, transfer funds and transact online, which indicates that consumers are comfortable with using their phones to handle money. But almost no one used their phones for contactless in-store payments at the register,” said Duncan Stewart, Director of TMT Research at Deloitte in Canada. “2015 will be the first year in which all of the requirements for mainstream mobile payments – satisfying financial institutions, merchants, consumers and device vendors – have been sufficiently addressed.”
Deloitte’s TMT Predictions are based on worldwide research supported by in-depth interviews with clients, industry analysts, global leaders and more than 8,000 Deloitte member firm TMT practitioners. Over the last five years, Deloitte was more than 79 percent accurate with its TMT predictions.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
