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Education

Who will win the mobile Bloomingdale's, the types of mobile
payment transactions and options
wallets war? available have grown exponentially.
This shift shows no signs of slowing
down.
By Don Bush It's a digital world
Kount Inc. Recently, some states have even

here are a lot of considerations when it comes to the future of the toyed with the idea of digital driver's
mobile payments space, especially in regard to the evolution of licenses (see www.cnn.com/2016/11/16/
mobile wallets. With dozens of options available and no clear leader, us/digital-drivers-license-trnd/index.
T many merchants are left wondering who will emerge as the winner html). Major players exist in the mobile
of the mobile wallet wars. And what will it take for mobile wallets to become wallet and payments space today —
the go-to payment source for consumers and reach higher consumer adoption companies from Apple to Visa are
in general? More widespread adoption will depend on a number of factors, putting serious investments behind
including, unsurprisingly, millennial and generation Z preferences. their offerings, touting partnerships
and unique feature sets with the goal
First, I want to correct a misconception. The notion that mobile wallets have no of emerging ahead of the pack.
traction is a fallacy. Even if you don't scan your smartphone at Dunkin Donuts
for your daily cup of joe, you probably have used a mobile wallet. "Mobile Kount's recent Mobile Payments &
wallet" simply means that you are carrying some form of payment information Fraud Survey found that, of merchants
digitally, rather than physically. that accept mobile payments, PayPal
(48 percent), Apple Pay (48 percent)
From using Venmo to pay the friend who puts her card down for brunch to and Android Pay (38 percent) are the
relying on Android Pay to purchase groceries at Trader Joe's or clothing at most preferred solutions, respectively.
So what's next? As with any emerging
technology, we will first see a
proliferation, where more and more
brands introduce mobile payment
options to the market, followed by a
collapse. We are still in the expansion
stage and likely will continue to be
for another 18 months to three years.

Merchants may have their favorites,
but consumers will ultimately
drive adoption by making a choice.
This choice may be determined by
brand loyalty, ease of use, superior
marketing or a combination of all of
these factors. Merchants who don't
accept this choice will feel the sting
as consumers look elsewhere for
their purchases, driving the process
full circle as more merchants are
forced into prioritizing and accepting
consumers' preferred methods.

Generation Z and millennials will
play a huge role in the outcome of
mobile wallets: Most millennials and
Gen Zers, 80 percent and 76 percent,
respectively, own smartphones. These
groups engage with their phones
most often. According to a June 2017
Bank of America survey, more than
one in three millennials (39 percent)

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