While rumors are flying about the next iPhone and what Google has planned for Android’s future, it’s clear to everyone that 2013 will be the year that mobile commerce trends will finally reach a fever pitch with consumers. The technology and user base have been expanding over the past few years, and 2013 will see consumers and brands embracing payments via mobile. Here’s a few of the companies that will be leading this trend:

#1 PayPal

paypal_mobile_swipeHere’s a quote from their fourth quarter earnings report:

“EBay mobile finished the year with $13 billion in volume – more than double the prior year – and PayPal mobile handled almost $14 billion in payment volume, more than triple the prior year. In 2013, we expect each to exceed $20 billion.”

This is an incredible story of focus and a simple value proposition.  This is before they really get going with Home Depot. (I saw new signage all over the store recently.)  Plus in 2013, PayPal will add seven million locations through the Discover partnership.

Consumers love it because they can leave their cards in their wallets.  They just need a simple password to add to their PayPal mobile account.  They are already interacting with their eBay account on their smart phone, why not add the feature.  Did I mention eBay’s 117 million members?

#2 Amazon

Is it a mobile payment if you use your preloaded card on your Amazon wallet to make a purchase on your smart phone?  I say yes.

Citi securities analysts estimate $5B in sales for Amazon on mobile phones and other handheld devices in 2012.  At Amazon, stats usually increase 50 % year over year. So this will move at the same velocity.

These first two reasons involve little to no technology changes.  For the growth of mobile payments, it has to be easy for merchants and consumers alike.

#3 Isis/Google/V.me

New payment types require significant cash investment to reach scale and these three big boys have the cash.  Though they have been a little slow to spend it.

We know that Google is putting money into terminalization, and the more we see NFC terminals, the more we will be curious, and figure out how to use them.  Isis is getting ready to make a splash.

V.me is helping banks get into the mobile wallet game with a great product.  They have signed more than sixty banks.  Well-funded marketing campaigns will stimulate adoption.  It’s a lot easier than when we first launched mobile banking and we had to start at square one.  This is just an add on.  Look at the success of Mitek—they’ve made remote deposit capture table stakes.  I just noticed that Fidelity Investments has raised their RDC limit to $10,000.

#4 iPhone 6

Don’t fall for PassBook, it’s not a mobile wallet and it’s not NFC.  But the next iPhone will have to have NFC.  Apple already has over 200MM customers who have listed their debit and credit cards—see Amazon and PayPal above.

It’s breakout time for iPhone 6 to have NFC.

Since the iPhone came out, I have been amazed at how Apple gets us to do things with our phone we never thought we would or could do.

Apple has trained us well. We bought the iPhone, we bought the iPad, we bought the iPad mini, and we only buy music on iTunes.  Now they will teach us “there’s a better way to pay.”

Steven Kietz, EVP and General Manager, Strategic Partnerships

Steve leads efforts with Financial Institutions and other major partners at edō. Steve is focused on working with leading financial institutions and channel partners to deliver valuable targeted offers to their customers using the latest technology.

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