The Growing Trend of Mobile Payments In The Retail Industry

One reason why retailers should consider accepting mobile payments is because it offers a greater level of security and protection against fraud. Last year, Target, Michaels, Neiman Marcus and several other major retailer experiences a massive security breach where millions of customers’ credit card and debit card data was stolen – including pin numbers and contact information.

Ease of Use

There’s also a certain simplicity to paying for products on a mobile smartphone or device. Here’s a scenario to consider: you pick up a product and make your way to the checkout lane only to discover that 20-30 other shoppers are waiting in line. Depending on the store’s policy and setup, you may be able to pay for the product via your smartphone without standing in line.

Current State of Mobile Payments In The Retail Industry

You might be surprised to learn that some retailers have already begun to accept mobile payments. Google launched their mobile payment solution Google Wallet earlier this year, which allows customers to purchase products via their mobile smartphone from retailers which use PayPass or PayWeave. Google Wallet remains somewhat limited in terms of function due to the fact that retailers must use the two previously mentioned payment processors. However, we’ll likely see some improvements and modifications to this technology in the years to come.

Apple has also expressed interest in designing a mobile payment processor for iPhone users. Nordstorm Inc. and certain food delivery companies currently accept payments via the iPhone or iPad.

What’s Next?

Only time will tell what the future has in store for mobile payment processors in the retail industry, but all of the evidence suggests a growing trend in this direction. It’s highly unlikely that traditional point-of-sale cash registers will become obsolete, but mobile could very well overtake them in terms of popularity within the next few years.