Mobile payments are gaining acceptance among consumers in North America, Japan and some countries in Western Europe, according to Gartner.
The company predicts that half of consumers in mature markets using smartphones or wearables will use mobile payments by 2018.
"Innovation in apps, mobile devices and mobile services are impacting traditional business models, particularly in the way people use personal technology for productivity and pleasure," said Amanda Sabia, principal research analyst at Gartner.
"Product managers must understand who their customers are for these new devices and services, and how the products are being used. Knowing your customer is imperative in order to capture a fair share of spending opportunities in this dynamic marketplace,” she added.
When it comes to mobile payments, there are three types of mobile payments or mobile wallets available now: smartphone or wearables-based payments, branded mobile wallets from banks or credit card providers, and branded mobile wallets from retailers such as Starbucks.
However, mobile payments using Near Field Communication (NFC) technology (Apple Pay, Samsung Pay and Android Pay) will be limited in the short to midterm due to a lack of partnerships between retailers and financial organizations, as well as consumers seeing little value in such payments.
According to Annette Jump, research director at Gartner "Any mobile payment wallets that are tied to the device will have limited adoption and only if the device has a huge installed base. Instead, cloud-based solutions will have a better chance to succeed as they can reach a wider audience and can support many use cases beyond face-to-face or in-store options. Also, mobile payment and mobile wallet adoption requires a country-by-country rollout plan with an enabled payment infrastructure and agreement with major banks and retailers."