Passbook could become 'gateway' to mobile payment acceptance

Passbook could become the gateway to increased consumer adoption of mobile commerce.

During Apple's Worldwide Developers Conference (WWDC), there was no mention of the Passbook application during the keynote address that unveiled iOS 7. According to reports from those that have been able to play with the new operating system, the app, which was a tentpole feature during the 2012 WWDC, is nearly unchanged in the new iteration. While it seems that the company may be putting the mobile commerce app on the back burner, not all experts think that is a good idea.

According to a GigaOM article, Passbook could become the gateway for many consumers to accept the use of mobile devices during the payment process. The article cites a CashStar study, which indicates more users are adopting the technology every day and it could the beginning of a new age.

The company, which makes digital gift cards for businesses like Starbucks, Dunkin Donuts, Best Buy and others, reports that in the 10 months since the application has debuted, 33 percent of all digital gift cards were opened on a smartphone, 66 percent of which are iOS 6 devices. On top of that, 30 percent are added to the Passbook application.

The article points out that there was a learning curve to the applications that caused adoption to be slow at first and many businesses were also reluctant to jump on the bandwagon right away. Now, the number of digital cards is doubling every few months and more money is changing hands electronically.

"Without being more specific, CashStar says 'millions of dollars' in gift cards have been added to Passbook since it debuted. Although the number of users of Passbook gift cards is still in the 'tens of thousands.'" the article reads.

The payment landscape is starting to change and merchants should partner with a payment solution provider to start taking steps into the future.

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