Mobile Payment Trends: Mapping the Future of Payments
We are witnessing a new Gold Rush era in payments, with significant funding for payments-related innovation in the last few years. The explosion of mobile phones and smartphones has introduced fascinating new ways to make transactions. Innovations are coming from contactless cards, near-field communications, smartphone extensions, biometrics, virtual currencies, inter-banking schemes and mobile point of sale. This paper explores the key trends and innovations, and concludes with predictions about the payments sector in 2020.
A true economical war is upon us. Fierce battles of innovation are already taking place and shaping the future of payments. The advent of Internet allowed for the creation of virtual markets and the rise of electronic commerce. The deployment of mobile phones and smartphones, which combine the power of Internet and telecommunication means, is introducing fascinating new ways of making transactions.
The technological innovations are bypassing the systematic structuring measures taken around card schemes. Europay Mastercard Visa (EMV) with smartcard chip-and-pin security measures, in addition to the panel of 3D Secure norm and Payment Card Industry (PCI) standards such as PCI DSS, haven’t been globally deployed and have already become insufficient to cover the needs of keeping pace with the new payments innovations.
This Paper assesses mobile payments (m-payments), contactless payments, smartphones payments with diverse technologies, biometric security, the advent of virtual currencies such as Bitcoins, new transformation of smartphones into card acceptance terminals, etc. In addition to all those innovations, the competition between Payment Service Providers and Banks is starting to create a motion towards innovative inter-banking schemes that would allow for better reachability, improved porting, and stronger control of fraud rates.
This paper also takes on the challenge of mapping the global payments innovations and attempts to help forecast the future of mobile payments, or at least bring an educated guess to the Rise of Smart Payments.
Download the full Paper, Rise of Smart Payments: Mapping the Global Future of Payments (PDF) to continue reading.