Mobile Wallets Are Struggling to Gain Wide U.S. Following


The promise of a mobile wallet has a host of American startups trying to cash in. However, startups as well as bigger brands have struggled to find the winning combination to transform mobile payments into everyday consumer behavior. Many people are not aware of the new payment systems, others are confused by the many choices, and some see no benefit in the mobile option over using cash or credit cards. Analysts say significant problems still must be addressed, considering disparate parties such as banks, payment networks, retailers, and wireless carriers are all involved in making digital wallets. Merchants who want to accept mobile payments are unlikely to support all the possible types, so consumers who want to make purchases with a phone must first find a business that supports the technology, and then determine which smartphone technology the store accepts. Meanwhile, although mobile wallets could be years from widespread use in the United States, but they are starting to catch on elsewhere. In Japan, for example, NTT DoCoMo says a third of its 65 million customers are using its mobile payment service.

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From “Few Consumers Are Buying Premise of Mobile Wallets”
New York Times (04/27/14) Chen, Brian X.