BROOKFIELD, Wis.—Will 2016 finally be the year mobile payments go mainstream?
Fiserv says that is still a difficult prediction to make with certainty, but did note that smartphone payments should get an assist this year from wearables.
“As they become more widely adopted and consumers become more comfortable with them as a technology, we may see wearable devices – particularly smartwatches – give a boost to mobile payments in 2016,” said Andrew Barnett, principal digital banking consultant at Fiserv.
In addition to serving as an additional device from which payments can be made, wearable devices have the potential to enhance mobile payments security, he said.
“For example, as long as a wearable is within a certain distance of the owner’s mobile device, a transaction can be made. This type of capability can help overcome consumers’ security concerns related to mobile payments,” said Barnett. “Once a strong enough comfort level is established and consumers feel like they can leave their physical wallet behind, we’ll see mobile payments start to fulfill their promise.”