Retail is bracing itself for transition as mobile payments dominate industry conversation in 2013. A survey by ACI Worldwide, which polled attendees of the National Retail Federation’s (NRF) 2013 annual conference during January, sought to identify key trends affecting the retail sector.

According to survey respondents, Google is believed to be the most likely to win the mobile wallet war. While 53 per cent believe Google will prevail, an additional 25 per cent believe PayPal will come out on top, while only four per cent expect ISIS to edge out the market competition. Nineteen per cent believe a new market entrant could gain traction in this emerging segment. Nearly a third (32 per cent) expect the entrance of new mobile wallet providers to be the market development that will most impact retailers over the next 12-18 months (as opposed to US EMV migration, PCI data security standards, and increased implementation of contactless PoS terminals).

Eighty three per cent expect the rate of implementation of contactless PoS terminals to increase or significantly increase, as compared to 2012. However, there are still barriers to overcome in implementing a mobile payments strategy. The majority of respondents (44 per cent) feel that the greatest barrier to entry for retailers when seeking to receive mobile payments is the lack of common standards for payments. Twenty five per cent believe the greatest barrier is the building of a PoS infrastructure, while 17 per cent note the costs of implementation. An additional 13 per cent felt that it was the lack of consumer devices offering NFC that most inhibited retailers from receiving contactless payments.

When asked what the biggest risk to retailers was when it came to implementing a mobile payments strategy, 68 per cent said the answer was customer privacy protection (43 per cent) and increased instance of fraud (25 per cent). Twenty four per cent identified concerns over diminished customer contact and relationship as the biggest risk.

“The data we collected confirms our belief that 2013 will be an important year in the growth and acceptance of mobile payments,” says Jeff Hale, senior vice president, retail payments, ACI Worldwide. “In our evolving economy, consumers expect to be able to shop and conduct transactions anywhere and at any time. What you see in this survey is a confirmation that the delivery of mobile solutions aimed at meeting this demand is top of mind as retailers focus on building a mobile experience that enhances customer satisfaction and intimacy.”

Share Story: