Page 14 - Advanced_Payments_Report_2014

ADVANCED PAYMENTS REPORT 2014 – SPONSORED BY

6. Technologies for mobile payments

Which technology for mobile payments?

It is clear from this year’s survey results that respondents a cloud based NFC solution. Additionally, innovative applications of

continue to believe that multiple mobile technologies QR code based niche solutions continue to pursue the promise of
frictionless payments.
have the ability to successfully drive mobile commerce
This year’s survey respondents, when asked which technology will
at the point of sale. However, there is a major shift be most successful to drive mobile proximity commerce going
towards cloud based software solutions and away from forward, selected NFC by a signifcant margin over cloud based BLE

hardware based technologies such as the mobile SIM. and QR codes. This compares to last year’s results where the non NFC
technologies received relatively equal support.
The debate about which technology is best suited for mobile This strong belief comes in spite of the fact that the NFC ecosystem
payments continues. This year there were several signifcant remains complex and competing technologies continue to emerge.
developments that make the debate even more interesting: Apple Sound based technologies were ranked the least likely to be
and PayPal, both long-term proponents of cloud based solutions, successful followed by biometrics, which respondents also ranked
announced support for Bluetooth Low Energy (BLE) further as unlikely to be successful.
challenging the NFC paradigm. In contrast, Google’s enabling Host
Card Emulation (HCE) in its new KitKat platform brings credibility to Signifcant Evolutions in 2014?
Strong support for NFC and its
ability to drive mobile commerce is
Technology most likely to drive mobile proximity commerce likely a refection of expectations for
going forward? advancements anticipated in the
(% of respondents that prioritised the top 3 items) upcoming year. Many of the MNO-led
initiatives around the globe are planning
NFC embedded solution (e.g. SIM card, mobile, sticker, to or have already moved from limited
smartphone case / sleeve) 57%
pilots to national rollouts. For example,
BLE - Bluetooth Low Energy (e.g. Apple or PayPal 17%
Beacon) the US based ISIS, the joint venture
between AT&T, T-Mobile and Verizon,
QR codes on mobile 15%
announced its nationwide rollout at the
Biometrics (e.g. Natural Security) 10% end of 2013, after a year-long trial in Salt
Sound-based technology (e.g. Tagattitude, Zoosh, 1% Lake City, Utah and Austin, Texas. The ISIS
Clinkle)
application will likely be pre-loaded on
0% phones sold by the three MNOs. Similar
20%
40%
60% MNO-led initiatives are expected in China,
Germany, France and Japan for 2014.

14 www.edgardunn.com | www.paymentscardsandmobile.com Edgar, Dunn & Company in association with Payments Cards and Mobile