“Your watch is sooo 2018”

Half of consumers in mature markets (those in North America, Japan, and some countries in Western Europe) likely will use smartphones or wearables for mobile payments by 2018, predicts Gartner Inc.

"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," says 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."

When it comes to mobile payments, there are now three types of mobile payments or mobile wallets available now:

• Smartphone or wearables-based payments.

• Branded mobile wallets from banks or credit card providers.

• Branded mobile wallets from retailers such as Starbucks.

However, mobile payments using near-field communication technology—Apple Pay, Samsung Pay, and Android Pay—will be limited in the short- to mid-term due to a lack of partnerships between retailers and financial organizations, as well as consumers seeing little value in such payments.

"Any mobile payment wallets that are tied to the device will have limited adoption and only if the device has a huge installed base," says Annette Jump, research director at Gartner. "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."