Contactless mobile payments can take place if the wireless mobile phone device have a built-in Near Field Communication
(NFC) chip to allow consumers to make contactless mobile payments.
Visa and MasterCard (the two major payments providers) are pushing NFC payment solutions hard - a raft of contactless payment systems.
Quite a number of NFC-based payments systems, for example, Google Wallet, On Track Innovations plug-in device, and Isis, rely primarily on mobile phones that have a built-in NFC chip or can be equipped with a special Subscriber Identity Module SIM card or a sleeve.
Also, MasterCard and Visa are have Certified some third party companies with Plug-In Device for Wireless Mobile Payments to target large-scale implementations with banking institutions and payment card providers, as well as projects involving public transportation, institutional memberships and loyalty and rewards programs.
For contactless mobile payments, NFC technology is becoming increasingly recognized as the fastest, most efficient, most versatile and secured method for person-to-person payment system or payment transactions.
However, despite all of the dazzling technological possibilities, there is no silver bullet, no single new technology that will change the face of banking or payment systems. That will be driven by human consumer people.
Mobile Payments set to grow by 1000% during 2021
Contactless Card Payments.com think that during 2020, the Mobile Payments will reach and pass it's tipping point.
The use of mobile phones for making in-store payments is set to grow by 500% during 2021, marking a mass-market tipping point for NFC-enabled transaction.
2020 will continue be the year mobile payments will be adopted by the mainstream - satisfying consumers, merchants, device vendors and financial institutions.
There is this prediction that NFC equipped smartphones worldwide will be used to make an in-store NFC payment at least once a week, compared to once a month in an NFC phones in mid-2019.
Despite the upsurge in the use of contactless payment cards in the Transport for London (TfL) Buses and Tubes, rails etc... Contactless mobile payment will BE mainstream by end-2021, but niche adoption will be a major progression from near future.
The volume of NFC-smartphone transactions and the range of spend value to increase steadily over time as consumers become more familiar with the process, and more banks and merchants in more markets accept this form of transaction.
However, contactless mobile payments will likely co-exist for some time with all other means of payment, from contactless credit cards to cash. The mobile NFC payment revolution has started in 2021 and there is no going back.
The arrival of ApplePay and HCE have certainly remove some of the technology barriers to mobile payments, but mobile NFC is slowly meeting the criterion for success. Hopefully, it will be 10 times better/ cheaper/ faster than what's on the market today.
Consumers using the mobile wallet have tended to use their mobile phones in place of cash for low-value transactions,
much like they would use prepaid cards.
The tipping point for these types of payments is fast approaching. Banking advice will reach us in real-time via our mobile devices.
Could it be conceivably that the banks that prosper will be those that have become very, very good at being virtual and digital repositories of our money, allowing access to that money anywhere at any time?
The key thing for any new payment system is finding a trigger to get people to use it in the first place.
The challenge for mobile payments is that in theory you can use mobile payments for almost any payment you want, but there are very few that you can only do using mobile.
People need to see clear contactless mobile payments benefits if they are going to want to overcome the barriers involved in learning and using contactless system.
If you go into one store and pay with one technology, but are not able to use that technology in another store, clearly that will be problematic. So, deals like this bring more horses to the water, but the challenge is still getting them to drink.
Isis (not isis in Syria or ISIL Islamic State Jihadism or Daesh), a venture of AT&T, Verizon Wireless and T-Mobile. Use Isis and pay with your phone. Who knows? You might even impress someone.
Starbucks and Dunkin' Donuts have had mobile payment apps for some time, and Wendy's, Subway and Sonic are in the process of deploying their own.
Burger King, using Firethorn technology, launched a mobile payment test in Salt Lake City in June of 2012, a few months before Isis finally got its testing off the ground in that city.
As Isis prepares to expand, several terminal makers have agreed to support its Smart Tap specifications, giving Isis much broader acceptance at the point of sale.
AT&T, Verizon and T-Mobile will preload the Isis Mobile Wallet application into their new phones by the end of the year.
With many other mobile wallet ventures rely on software-based mobile payments technology, Isis has steadfastly clung to Near Field Communication chips for contactless payments