Despite the massive size of the US retail point-of-sale (PoS) market, mobile wallets have experienced stalled growth thanks to slow adoption, lack of merchant enthusiasm, fragmented offerings and blocking by rivals, said a new report by Javelin Strategy & Research.
A growing number of wallet providers have been fighting for less space this year, as rivals attempt to position themselves for anticipated growth.
Growth in mobile app and mobile online payments have outweighed those of mobile proximity payments, said the report.
The report also said the competitive advantage offered by the Amazon, Apple, Facebook and Google content ecosystems has yet to be fully exploited.
“Although it is undeniable that considerations beyond the user experience will shape the use of mobile wallets, the providers left standing as the space matures will need to capture consumer and merchant scale,” said Mary Monahan (pictured), Javelin’s director of mobile.
“It is a mistake to assume that consumer attraction to a particular technology (e.g. cloud, NFC, QR code or Bluetooth) alone will separate winners and losers.”