By Aina Tolulope

NFC, HCE and BLE technology for contactless payment is gaining worldwide acceptance. Over the next years, smartphones will replace purses and offer a range of different payment options with value added services.

ICT Based Company, Ericsson ConsumerLab in its annual trend report has released ten consumer trends, identifying the most important trends for 2015 and beyond.

While mobile money is gaining ground across many markets, the report among predicted that 48 percent of smartphone owners would rather use their phone to pay for goods and services.

Accordingly, 80 percent, the report indicated believe that the smartphone will replace their entire purse by 2020.

The way people pay for goods and services is changing. Not so long ago you needed cash or a credit card, but increasingly mobile phones will be used for making payments at least for small transactions, the study can reveal.

Recall that Apple’s mobile phone payment solution, Apple Pay, received widespread attention when it was announced earlier in october. Due to launch in the UK next year, it will enable Apple customers to make payments via their iPhone 6 or 6 Plus phones using the device’s fingerprint scanner (Touch ID) for authentication, once a credit card is scanned and added.

A lot number of Blackberry & Android smartphones already have a built-in Near Field Communications (NFC) chip, enabling them to be used for contactless payments. According to Visa, there are 1.5 million payment terminals across Europe capable of accepting contactless payment from a credit/debit card or NFC-equipped mobile phone.

Chains that already accept contactless payment include Pret A Manger, McDonald’s and Marks & Spencer.
In no time, several other chains is expected to adopt the new platform. Thus, Erricson consumerLab’s repot for 2020 is only way behind.

Although, currently, most customers who choose to make contactless payments use credit and debit cards. But for, Michael Bjorn, Head of Research, Ericsson ConsumerLab, “With Only five years until 2020, the future really does seem closer than ever before; as smartphones is expected take over”

Speaking on the highlights of the report in a video conferencing last week, Micheal told IT Journalists in Lagos that, “The cumulative effect of smartphones becoming part of mainstream society is astonishing. As consumers, we try out new apps and keep the ones we think improve, enrich or even prolong our lives at such a rapid pace that we don’t even notice that our attitudes and behaviors are changing faster than ever.”
Rebecka Cedering Angstrom, Senior Advisor, Ericsson ConsumerLab, said that the report is changing the mentality of the consumers in the digital economy.

Although Nigeria was not among the countries used in the report, she stated that media use patterns are globalizing, adding that viewers are shifting towards easy-to-use on-demand services that allow cross-platform access to desired content.

As the internet enables us to efficiently share information with unprecedented ease, the idea of a sharing economy, through smartphones, she said is potentially huge.

It’s not just mobile phones that will be used for contactless payments. Wearable technology includes a wristband loaded with a computer chip, which is currently being trialled on the London Underground, as well as NFC-equipped smartwatches. And Samsung and PayPal could join forces for a new generation of smartwatch-based mobile payments.

While the wallet and purse it may not be dead yet, they could soon be replaced by new technical developments. 

By Aina Tolulope