Boston, June 26, 2012 – A new report from Aite Group reveals a positive outlook for mobile payments enablement in the United States and outlines a shifting competitive dynamic that will require payments acceptance providers to work with new vendors. Based on a May 2012 Aite Group survey of 44 payments acceptance executives, completed with cooperation from the Electronic Transactions Association, the report discusses the evolving competitive dynamics associated with the creation and deployment of mobile payments.
The transition of payments from a static piece of plastic to a Web-connected communications channel is opening opportunities to enhance communications between merchants and consumers, provide new shopping experiences, change advertising and marketing, and transform the way merchants and consumers complete transactions. It has also established the point of sale as a key bottleneck through which transitional activities must pass—a change that will dramatically affect payments acceptance technology and the firms that provide it. The move to new technology will require the industry to implement new infrastructure for merchants and address new security considerations.
“With dollar signs in their sights, a strong belief in merchant interest, and limited concerns about risk, acquirers and mobile payments acceptance technology providers are moving to deploy solutions across their merchant locations,” says Rick Oglesby, senior analyst with Aite Group and author of this report. “While the momentum is building, deployment of mobile acceptance technology is not yet full-force. Many providers are working through preparatory activity, though are in some cases hesitant put their full weight behind their efforts."
The report references American Express, Apple, AT&T, Barclaycard, Capital One, Chase, Citibank, Discover, Erply, First Data, Google, Groupon, Ingenico, Isis, Leapset, MasterCard, PayPal, POS Lavu, Revel Systems, SalesVu, ShopKeep, Square, T-Mobile, Vend, VeriFone, Verizon, and Visa.
This 22-page Impact Note contains 16 figures. Clients of Aite Group’s Retail Banking service can download the report by clicking on the icon to the right.