Mass adoption of smartphones tipping point for explosion in mobile payments technology says DeloitteDOWNLOAD
19 July 2012: The explosion of new technology and virtual currencies is changing where, when and how people and business exchange value. Professional Services firm Deloitte launched a report today which investigates the emergence of a new generation of payments solutions using technology to interact and transact with people.
The future of exchanging value – Uncovering new ways of spending explores how conventional payments infrastructure is changing. Winning organisations will be those that look beyond traditional payments platforms and actually consider simplifying consumers’ purchases by having the right payments solutions available at the right place and at the right time.
Professor Ian Harper, Partner in Deloitte Access Economics, explained that established payments platforms will continue to play an important role in the short to medium term and new clearance and settlement solutions largely work within conventional payments systems and regulation.
“The start-up technology companies, which are giving organisations new settlement options, do have the potential to affect payments that are currently outside the legislated monopolies managed by central banks like the Reserve Bank of Australia. However the shift in consumer behaviour will be gradual due to the need for consumers to develop a level of trust with alternative payments methods.”
“This includes trust in the payments solutions, trust in the stewardship of the organisation that operates the actual payments solution and trust in the regulatory environment that the solution operates within,” added Harper.
Peter Williams, Chief Edge Officer of Centre for the Edge Australia said it is all about the changing ways consumers are buying things, primarily driven by the explosion in mobile payments technology and the availability and accessibility of that technology.
“Today’s consumers are more mobile in their transactions and now have a wealth of options available regarding where, when and how they make purchasing decisions. The balance of power has shifted from the traditional retailer to the consumer and the success of online retail trail-blazed this. Technology, such as Square , Google Wallet and Paypal Instore gives consumers real-time transactions with immediate payments clearance. These technologies are the leading the way due to speed, comfort and convenience of exchange.”
“The buying process is now simpler and cheaper so consumers can transact more efficiently. This has been driven by the successful uptake of the smartphone. Consumers are accessing product and service information from around the world and then securing the best purchasing deals available for them,” said Williams.
The report also demonstrates that while the future of payments is uncertain, the availability of internet connectivity and the mass adoption of smartphones may affect the payments industry and incumbent payments providers risk being left behind.
Key highlights from the report are: