What happens when a device that fits in your pocket delivers more computing power than the room full of supercomputers that it once took to launch a space shuttle? What happens when innovative technologies from a wide range of industries begin to come together and create new opportunities? What happens when new products and services deliver capabilities that help innovators envision better ways of eliminating friction points that people have been living with for years?
What happens is that you get the perfect conditions for the kind of rapid technology-driven transformation that has been gathering momentum in the payment industry for the past couple of years. It’s a transformation that promises to revolutionize commerce by rendering the transaction all but invisible while making the payments process itself a foundation for new experiences that connects consumers and merchants in powerful new ways.
Signs of this revolution are all around us, as more and more people use their mobile devices to facilitate more and more of their purchases. How quickly is this happening? In 2011, PayPal processed $4 billion in mobile payments. In 2013, that number will be in the vicinity of $20 billion.
But this is just the beginning. With companies large and small in payments, technology, financial services, telecommunications, and retail scrambling to play a role in the emerging world of mobile-driven payment experiences, I believe we’ll see a wave of innovation in the coming 12 months that will make 2014 a watershed year for commerce. This innovation will make its way into consumer’s hand in the form of products and services that make shopping faster, easier, more personal, and more fun.
Of course I look forward to seeing what new consumer-oriented products emerge during the next 12 months. But as PayPal’s chief technology officer, what interests me even more is what’s happening on the back end that will make these new products possible. As we wrap up 2013 and head into the New Year, I thought I’d take a few minutes to share my thoughts about some key technology trends that I believe will have a huge impact on the transformation of the way companies work and how people pay in 2014 and beyond.
1) Bluetooth Powers Local Experiences
2) Hardware is the New Software
3) The Death of the Password
4) Open Source for the Cloud
For more background on each these 2014 predictions, please read my original post at Wired.com.