Visa Inc (V), Google Inc (GOOG): 3 Good Reasons Mobile Wallets Aren’t Catching On

Only Visa Inc (NYSE:V)’s V.me digital wallet seems to be making inroads, albeit slowly. Despite having partnered with 90 financial partners, Visa Inc (NYSE:V)’s CEO noted on its latest earnings call that convincing merchants to sign on has been tough. Currently, Visa Inc (NYSE:V) has 253 merchants on board, but it acknowledges that many don’t see an advantage to signing up.

3. Mobile wallets are no more convenient than credit and debit cards
This is a biggie, and it may be toughest nut to crack for the purveyors of this technology. Using a credit or debit card for purchases is extremely convenient, for both consumers and merchants. For customers, almost universal acceptance of plastic makes the decision to forgo virtual wallets a no-brainer; for merchants, it means not having to invest in new point-of-sale terminals. As one analyst noted in a recent article in The New York Times, the technology is “trying to solve a problem that doesn’t exist.”

To succeed, one company must dominate
In my opinion, the current throng of players will need to be narrowed down to just one if this technology is ever to experience widespread adoption. As it stands now, it’s simply too confusing for both consumers and merchants — particularly when the current payment options work so well.

My pick for the job would be Visa Inc (NYSE:V), the only company that seems to have a good handle on what it takes to get the necessary parties on board. Once that’s settled, the next step will be to figure out how to squeeze that pesky driver’s license into a virtual wallet.

The article 3 Good Reasons Mobile Wallets Aren’t Catching On originally appeared on Fool.com and is written by Amanda Alix.

Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool recommends Google and Visa. The Motley Fool owns shares of Google.

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