Cell Phones Will Morph Into Wallets By 2012
The report, by technology research firm In-Stat, projects that by 2012 between 8 million and 30 million customers in North America will be making contactless payments via cell phone. The key is incorporating the short-range wireless technology into handsets and payment systems that make such transactions possible.
In-Stat expects progress to be made toward that goal this year as handset manufacturers, carriers and other companies overcome technical hurdles to implement near-field communications (NFC) technology. "The groundwork is being laid by a lot of companies really moving toward that, but it will take a while for the infrastructure to get built," said In-Stat analyst David Chamberlain. "The most important thing now is getting people accustomed to using cell phones for other types of financial transactions."
He noted that at least half the mobile phones in the U.S. can handle online banking transactions. But most cell customers still use phones mainly for talking or sending text messages.
The most advanced market for contactless payments is Japan, where about one-third of cell subscribers use their phones as mobile wallets. "NFC technology is what's being used in Japan, and it's been very successful," said Chamberlain. "That's the market we want ours to eventually look like."
During the last six months or so, handset makers have agreed on technical standards for installing NFC technology in phones. But now they have to work with payment technology companies to come up with a complete system for using a phone like a debit card. "These two systems--the big cell phone companies and debit card systems--are both headed in the same direction, which is toward contactless payments," he said.
Just don't expect to see anyone zipping through the checkout line with a cell phone anytime soon.
Recent Online Media Daily Articles
-
Network Advertising Initiative Proposes New Mobile Privacy Rules May 22, 9:03 p.m.
Moving forward with its plan to issue mobile privacy rules, the self-regulatory group Network Advertising Initiative ... -
Entertainment, Travel Bet On Mobile Banners May 22, 4:16 p.m.
Banner ads have long been the whipping boy of online advertising, and the same is now ... -
Marketers Should Tailor Specific Pitches To Tablet, Smartphone May 22, 2:51 p.m.
Don’t lump tablets in with mobile. That’s the takeaway of a new Forrester study looking at ... -
Good TV Content Trumps On, Whether Trad TV Or Streaming May 22, 2:42 p.m.
While consumers continue to perceive TV programming as superior in quality to that of online fare, ... -
Google Releases Self-Serve Display Benchmark Tool May 22, 2:02 p.m.
Understanding how a brand's online campaign competes with competitors requires trending benchmark data like engagement rates ... -
Twitter Brings Lead Generation To Tweets May 22, 1:14 p.m.
Twitter began testing a lead generation tool Wednesday in its tweet stream that resembles a cross ... -
DigitasLBi, Razorfish Tap Execs For Global Ops May 22, 11:26 a.m.
Publicis Groupe digital agencies DigitasLBi and Razorfish have installed new executives to run their respective international ... -
More Consumers Turn To Mobile To Research, Book Travel May 22, 8:53 a.m.
More than half of consumers used a mobile device to book travel in the last 90 ... -
Showrooming Overhyped, Mobile Key To Shopping Purchases May 22, 8:53 a.m.
Given consumers' mobile in-store shopping trends, some consider the showrooming hoopla overblown. The research process still ... -
Shopping App Swirl Adds In-Store Capability May 22, 8:53 a.m.
Swirl entered the mobile shopping fray last year with an iPhone app allowing users to learn ...
Be the first to comment on "Cell Phones Will Morph Into Wallets By 2012"
Leave a Comment