As companies race to adopt mobile payment technology, some say it won’t be too long before billfolds become a relic of the past. In fact, virtual wallets could be all the rage within the next two to four years, with people using a smartphone instead of pulling out cash or cards.  

According to the 2011 KPMG Mobile Payments Outlook, a recent survey of nearly 1,000 global executives in the financial services, technology, telecommunications and retail industries, 83 percent of the respondents believe the use of cell phones for financial transactions will be a mainstream practice within four years. And 46 percent claim mobile payments will be common in the next two years. Also of note, 58 percent said they already have a mobile payments strategy in place.

At the same time, IE Market Research Corporation (IEMR) recently forecast that the gross value of global mobile payment transactions would reach $945 billion in 2015, a nearly 30-fold increase from $31.5 billion for 2010.

However, even though mobile payment devices provide a fast and convenient way to purchase goods, it’s important to provide proper security prior to mass implementation. The complexity of mobile payment technology has certainly introduced new risks and threats that may affect the security of cardholder data.

As mobile and NFC technology continues to gain popularity, we will work together to address the shift in the payments industry, help protect cardholder information and defend merchants and acquirers against security breaches.

Interested in learning how SPVA can help you? Contact me at 404.803.0636, steven.hughes@spva.org or visit www.SPVA.org.