7 reasons mobile payments still aren't mainstream

Despite the fact that they received plenty of media attention during the past few years, "proximity" mobile payments, or mobile payments made at retailers' points of sale (PoS), have yet to hit the mainstream. Multiple reasons why exist, but perhaps the most significant roadblock thus far: Today's mobile payment systems simply don't offer a strong enough value proposition to compel consumers to use them consistently.

To date, the market has seen four alternative-payment success stories, according to Penny Gillespie, a research director of digital commerce with Gartner: PayPal, for online payments; Visa Signature debit cards; payroll cards; and gift cards. Each option offers "strong value propositions to consumers, as well as to merchants," Gillespie says, because they provide something new and beneficial that wasn't available before. Gift cards, for example, let consumers to easily send funds to friends and family, they make it easy for recipients to spend that money, and they drive recipients to stores, which benefits retailers. 

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