The challenge for driving adoption new technologies is simplifying the message. From eCommerce to undersea cables, the challenge for tech companies is explaining the benefits of what they do in 26 words or less.
While the idea of mobile money has been around for more than five years, there still questions around its place in the world. In an article in Wired last week by entrepreneur and former CTO at BT Peter Cochrane explained that mobile wallet will be the cornerstone of future of consumer transactions. The idea that mobile devices will replace the need to carry cards or cash wasn't surprising but the reader responses were.
Most doubted the concept. Paper money works. Why would we need something different? It is almost the same response FM radio got when it arrived to replace AM more rather 20 years ago. Now if, we still listen to radio, the AM dial is a little dusty. This isn’t to say all new tech is inherently good but rather that they need to be explained and experienced.
Consumers and enterprise technology adopters need answers for their fears and the benefits of new technologies communicated clearly.
According to a new report by business consulting firm Frost & Sullivan, around 42.3% of mobile payments in Europe in 2015 will be NFC (Near Field Communications) or contactless payments. This is expected to rise to 49.6% in 2018 when 38% of mobile phones shipped will feature NFC.
In the US there were 2.7 million mobile wallet users in 2012 which is predicted to soar to 48 million in 2016 according to statistics portal Statista.
Though impressive these numbers still represent only a fraction of the populations who will benefit from everything Cochrane set out in his article.
Why is this and what can be done?
It is no surprise that change of such a fundamental nature should be met with speculation. The companies involved have to convince the potential user base of the benefits and set aside some of their reservations.
Everyone from handset manufacturers, to banking institutions, mobile operators and beyond, need to be telling a consistent message about mobile wallets and why consumers should embrace them. If the mobile wallet is to change the landscape of consumer transactions any time soon, these organisations need to be dedicating resources to content campaigns that puts aside consumer fears and highlight the benefits of NFC payments consistently and continuously. Reinforcing the advantages, addressing the concerns and paving the way to a brighter consumer future.
Only when end-users and enterprise adopters appreciate the full benefits of contactless payments and have their fears or questions answered will we see any sort of widespread use of mobile wallets.
Ilex is helping major tech and telco brands tell their stories and build their businesses. With experience working in e-banking as well as with handset operators and mobile network providers, Ilex can offer brands looking to carve a niche in the mobile wallet space the cost effective and experienced support necessary.