Smartphone Transactions Make Impact Despite Availability of Mainstream Payment Options

Retailers might be the key to the widespread use of contactless payments. The adoption of NFC-enabled terminals has allowed businesses, banks and smartphone manufacturers to grow steadily, as more and more consumers rely on handheld devices for in-store transactions.

Because of this, retail has been the focal point of disruption currently taking place in the payments space. But not everyone agrees with the factors contributing to the sudden changes in the industry.

Philippe Lazare, chief executive officer of Ingenico, said, “Smartphones will be a small part of the market, but the main payment mechanism will remain the traditional [card] terminal which will continue to see growth.”

Ironically, Ingenico, one of the leading point-of-sale manufacturers made recent advancements to extend the capabilities of its contactless offerings. the company announced a partnership with Apple Pay during Mobile World Congress, allowing merchants to use the platform on its terminals worldwide.

At the moment, not all establishments are equipped with hardware that can handle NFC-based transactions. Some still see the emerging technology as a luxury instead of a necessity, especially in locations where cash is the preferred mode of payment.

“For several years now an explosion of that of kind of payment has been expected, but one should not forget that 85 percent of all the transactions in the world are still made via cash,” mentioned MasterCard chief executive officer Ajay Banga.

it will take some time to break through old payment traditions that have been around for decades. But in order to stay ahead, companies need to invest more in reliable financial systems, and most agree that is mobile payments.

With the rise of new regulations and better security features such as tokenization, cash may no longer be king in the future.