Though mobile wallets continue to show great promise, they will be on a longer adoption curve than many those in financial services expect, Michael Carter, chief market analyst for D3 Banking, tells Mobile Marketing & Technology.
It’s been nearly two years since the Apple wallet debuted, followed by the Android wallet and Samsung Pay. Then Chase debuted its own mobile wallet solution, followed by Walmart and a couple of other merchant as various firms attempt to get their own pieces of the mobile wallet business.
“Banks and credit unions need to take the lead role,” Carter says. “It’s logical. Banks have controlled the payments landscape. No one has to redo the payment rails.”
More consumers could be convinced to use mobile wallets as a faster option than payment cards used at EMV terminals, Carter adds. Despite faster technologies from Visa and Mastercard, the chip-based payments still take several seconds longer than the magnetic stripe payments U.S. consumers had become accustomed to.
But in order for that to happen, banks and merchants need to be on board to foster adoption, according to Carter. Mobile payments have to offer a win-win-win scenario for consumers, financial institutions and merchants.
In order for that to happen, loyalty and marketing elements need to be tightly incorporated into mobile payments solutions, Carter adds. The mobile wallets also have to offer consumers more convenience than other payment options.