Rishabh Software has analyzed and researched many top trade publications and analyst reports to create the list of the mobile payment trends that will shape digital payments in the coming years. These are the predictions that prominent through our research, or that echoed our own analysis and data.
Let’s start with the recent trend observed. This June, Apple announced its mobile payments technology during its big WWDC keynote event. During the presentation, Apple’s SVP of software engineering Craig Federighi pulled up a slide about Touch ID, the fingerprint scanner introduced with the iPhone 5s last year.
If you aren’t aware of what is Touch ID? Well it’s a fingerprint recognition feature, designed and released by Apple Inc., and currently only available on the seventh generation of iPhone, the iPhone 5S. The fingerprint recognition feature is also been followed in Samsung’s S5 smartphone flagship device. Both Samsung and Apple are delivering this feature in their latest devices to partially replace the way user enters their passcode or password during a transaction or purchase.
Federighi during the Apple’s WWDC also showed off how Mint, a popular personal finance application, would take advantage of the Touch ID API to let users scan their fingers to log in to the app rather than typing out a password.
Katy Huberty, an analyst with Morgan Stanley, wrote in an investor note after the WWDC event that, “While no new hardware was announced, we see services revenue upside from iCloud, Health and smart home-related apps and view developer access to Touch ID as a step in the direction of mobile payments.”
MasterCard transforms mobile purchases with it’s MasterPass
The advancements in NFC technology are also helping to be the crucial part of the mobile phone payment system but Apple has largely avoided the NFC path while pursuing a more multi-pronged approach. Apple introduced the Passbook app in 2012, which organizes tickets, store cards and coupons in one place and makes them easier to redeem. It has brought iBeacons, which relies on Bluetooth LE technology rather than NFC, to communicate with customers’ phones based on their location in the Apple Store. And then there’s Touch ID.
Apple CEO Tim Cook stated that, “The mobile payments area in general is one that we’ve been intrigued with, and that was one of the thoughts behind Touch ID.”
One could easily imagine other retail, payment and banking apps using the Touch ID API to boost security and remove some of the friction from the user experience. Apple’s strategy, in short, is more focused on serving as a platform to improve the experience of using other payment services — whether it be Citibank or Square — rather than attempting to become a full-fledged mobile payment service itself.
These are only a few trends to help you understand the power of mobile payment technology. With new hardware and firmware advancements in iOS, Android and Windows Mobile, it’s necessary for enterprises to develop a mobile payment system to stay ahead of the competition.
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