The year of the digital wallet

Image2011 was the year to talk about the digital wallet. A Google search for “digital wallet” will deliver about 250,000,000 results… just for the past year.

Although the conversation around the space is white hot, George Constanza’s wallet will continue to be valuable for years to come. 2012 will not be the year of the digital wallet, neither will 2013 or 2014 or even 2015.

First, the market is yet to be clearly defined. The “digital wallet” market includes solutions like: mobile payments using NFC technologies that allow consumers to wave-and-pay using their phone, barcode or QR code scanning for self checkout or price comparison, and coupons or loyalty rewards which are linked to your account or phone instead or a card or cutout.

Second, the there are a myriad of potential solutions coming from every direction including merchants (e.g. Starbucks), financial institutions (e.g. AmEx Serve) and tech companies (e.g. Google Wallet).

Unless you are a financial institution, mobile carrier, or technology company you are best to wait until the dust settles. Consumer adoption will be low and fragmented and the likelihood of guessing wrong and investing in the wrong space is high.

Two posts that describe the space well:

Forrester Research Blog “The Battle For the Digital Wallet”

http://blogs.forrester.com/benjamin_ensor/11-11-25-the_battle_for_the_digital_wallet

Fast Company Infographic “Mobile Melee”

http://infographics.fastcompany.com/magazine/161/smartphone-infographic.html

Advertisements

One Response to The year of the digital wallet

  1. Todd Klein says:

    I was nervous about mobile payments but I found this great app that has really eased my fears. It’s called CSI globalVCard. It allows me to generate one time use MasterCard numbers on my smartphone or tablet. This app is really the safest way for my business to make payments on the go!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: