Last month we ran a Poll on our Total Payments group on LinkedIn, here we put forth the question of "what alternative payment method do you think will replace the credit/debit card as the most popular method of payment acceptance in stores?"
Out of the options of Mobile Payments, NFC Payments, Prepaid Cards, mPOS devices or â€˜something else', our community voted nearly unanimously that Mobile Payment platforms would be the de facto replacement for plastic payments.
Mobile Payments received 52 per cent of our community vote, with NFC coming in with 28 per cent. Many (10 per cent%) also felt that something else would come along, thus being a more likely contender than both prepaid cards and mPOS devices – which both received 4 per cent of the vote.
We then turned to our community to ask for their thoughts on the matter.
Frank Svatousek left his two cents, saying: "I wouldn’t say that plastic cards will entirely be replaced with phones. There are still people who don’t even carry a mobile phone or have internet connectivity. Older generations may resist adoption so Financial Institutions will have to cater to those laggard market segments for some time to come."
Emre Talay provided his thoughts by saying: "Mobile payments is an alternative for consumers. In market usage of mobile payment will increase when the plasctic [sic] card’s usage decrease. But it will never replaced."
Greg Walter chimed in with his well reasoned opinion on the matter, saying: "With today’s technologies, it is possible to transact online without card information being shared between buyers and sellers. PayPal, iTunes, Qpay and payment aggregators do this already. Innovative payment forms also do this in the over-the-counter real wold [sic]. The effective removal of card information from the over-the-counter transaction only requires three things – user id (PIN or biometric), user name and card nickname.
"I believe the mobile phone will be the likely device to store usernames and to initiate these transactions. Until this is universal, then card data will still be shared and cards will still be around but declining."
Jean-Michel Bourin points out that "Mobile Payments and NFC will take a share of the payments (they already do), they will not “replace” the credit/debit cards. These cards will still be around in your purse 10 years from now.
"Credit/debit card PAYMENTS will be replaced for small to medium payments (I would say bellow 50$). The card itself will not be replaced."
Nicky Chisholm sees mobile payments as something far beyond the interaction between retailer and payment service "Mobile payments is more than just a payment method, it opens up a whole new channel of communication between retailers and consumers that can be intelligently used to deliver an improved shopping experience, taking it beyond payment."
As you can see, the payments space is a little hard to navigate and understand fully, but it seems unanimous that Mobile Payments will replace cards as the day to day transactions. While this doesn't mean the end of the credit or debit card, it means that we could definitely see them going the way of the cheque.
Did you vote in our poll?
Do you agree with the opinions expressed here?
Let us know by leaving a comment below.
The future of cards and payments will be discussed at length during Cards & Payments Asia 2013. Here you'll be able to find out how the world of payments could well be moving forward over the coming years – spotting the trends early and helping you make the most of a shifting landscape. You can download a free brochure now.