Key role of mobile wallets on the path to frictionless commerce

Efma feature

20 March 2017

A.T. Kearney and Efma report shows the increasing demand for mobile as a control tower and what is key to win in mobile wallets.

European customers will make more cashless transactions than cash purchases by 2022, and 10% of these will be made via alternative payment methods and non-bank providers, predicts A.T. Kearney.  Furthermore, especially proliferation of internet of things will create new payments situation and enabling frictionless experience.

A.T. Kearney and Efma’s Frictionless payments & wallets highlights the importance of mobile as a control tower for customers to get transparency across all non-cash payments ranging from POS to IoT-based ones. Thus payments experts expects that most innovation will be in the mobile area: Mobile (apps) citied by 54% of the participants followed by alternative payment methods and authentication methods (each 34%) – just to name the most important ones.

The report conducts a deep dive on mobile wallets and provides a sentiment of what is key to win in mobile payments. Establishing mobile wallets demands a change of customer behaviour. Thus, mobile wallet providers have to offer more than just ‘payment with a smartphone’ in order to convince them. In addition, high-frequency use cases like transportation have to be leveraged to allow customers to get used to it. However, the commercialization remains a challenge with a hope on value-add services.

A scattered European landscape with multiple initiatives is observable with banks having a good chance to play a relevant role as stated by the surveyed experts: The race has been started; yet it is too early to award the winners.

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Keywords : Digital payments/Wallet

Geography : International