Contactless payment adoption will come via mobile marketing

With Google and major mobile providers both recently releasing mobile payment systems, the idea of contactless payments using near field communication is closer to being a reality.

GigaOM reports that mobile marketing efforts must be undertaken by these companies to promote the technology in order to increase adoption and convince people that tapping a phone is easier than swiping a credit card.

"People aren't excited about the opportunity to use their phone to make a transaction in the store," Larry Glenn, senior director of application development for the Saks Direct division of Saks Fifth Avenue, told Multichannel Merchant. "We need to explain the benefits better."

Companies that offer discounts, daily deals and loyalty rewards programs that can be activated via NFC technologies will likely end up leading the near field movement, GigaOM points out. These can range from checking into stores for coupons or finding deals on NFC-embedded posters, both of which provide critical consumer data for retailers to track sales and change their product lineups.

Furthermore, NFC-related discounts via mobile marketing can strengthen retailers' relationship with customers and create opportunities for future growth.