ReadWriteWeb

We may still be a few years away from the mainstream adoption of mobile payments, but that hasn't stopped a whirlwind of buzz and product development from going on in the space. Some of the biggest players in tech, telecommunications and finance are all working on solutions that will enable people to pay for everyday items using only their phones.

So what's the hold up? For one, there are technical challenges. Technologies like NFC are not yet ubiquitous in handsets, and smartphone adoption itself is still growing. Few and far between are the retailers who have the infrastructure in place to support accepting payments this way. Another issue is consumer demand and trust. Only 23% would be willing to us their mobile device to pay for things, according to a recent report from KPMG.

Mobile payment has become a mainstream tech topic in the last couple of years, mirroring the rise of smartphones and application stores. E-commerce is becoming m-commerce. The focus point of the buzz has been the evolution of near-field communications as related to smartphones. The thing is, nobody in the payments industry expects NFC to be a player in mobile payments for years, if ever. In that case, what does the mobile payments ecosystem look like in the short term?

The current mobile payments market centers around several cores: direct carrier billing, mobile wallets, online and offline sales, mobile credit card readers and application stores. During meetings with various mobile payments experts and executives at CTIA last week, the most uttered phrase was: "This is not something I would use to buy a fridge." Where are mobile payments going?

Looking back on 2011, it may be remembered as The Year Of Mobile. Sure, iOS, Android, BlackBerry, Windows Phone and all the other platforms existed in previous years but historians will look back at 2011 and say that it was the year that the way an entire populace interacts with information fundamentally changed. Mobile is not just for the early adopters anymore. Smartphones are everywhere.

What made waves in the mobile realm this year? We take a look in our third installment of ReadWriteWeb's top products of the year. Our founder Richard MacManus kicked us off with social products and Jon Mitchell took a look at web-based consumer products. To make the mobile list, a product had to be built to fundamentally work inside mobile platforms, hence the platforms themselves (iOS, Android flavors etc.) do not make the list. Take a look at our list below and let us know what we may have missed in the comments.

Shopping is overwhelming enough, especially around the holidays. The leading consumer Web companies are falling over themselves to make it easier using all the innovative technologies at their disposal. As they figure it out, though, that only leaves consumers with even more options. Do we shop in person, on our desktops, our phones or our tablets? Do we go to a website or launch an app? Which one? How do we pay?

These questions have to be answered before we even get to choosing what to buy. They all make shopping easier, though, whether through giving us more information before we buy or by speeding up the process. Here are three kinds of Web-powered innovations that will contribute to the future of shopping.

SCVNGR, by its nature, is a social-based location game. It has partnerships with brands and universities, but, as CEO Seth Priebatsch will admit, it does not inherently lead to sales at the register. Location-based social game mechanics are not inherently transactional. That is where the company's newest product, LevelUp comes into play. Take merchant offers, location, game mechanics and make then transactional and you have an idea what LevelUp is trying to do in the mobile payments space.

SCVNGR takes a lot of heat for not having a direction. Yesterday article on SCVNGR's "path" got some sneers from the Boston startup community because the "path" is apparently that there is no path. LevelUp is the path and it dives deep into the fundamental nature of payments, merchants and how people interact with money.

Several years ago, three location check-in based startups stormed the tech world. Since then, Foursquare has taken off to somewhere near 15 million users, Gowalla has essentially died and the third and always the little sister, SCVNGR, has quietly maintained. Now two million with two million users and some strong brand partnerships, SCVNGR is not going to fade away. Will it thrive though? That remains to be seen.

The head of SCVNGR, 22-year-old Seth Priebatsch, understands that SCVNGR plays in the sub-domain of a realm, inside a niche. By that he means that SCVNGR is a social game (not everyone's type of fun) with a location-based bent, the niche inside the realm. Inherently, that limits the area of growth for SCVNGR. Yet, teamed with the company's new LevelUp mobile payments strategy, the roadmap for SCVNGR becomes clear.

In all the rumor-crazed lead-up to the launch of the iPhone 4S, one feature that was speculated about but never that likely was the inclusion of near field communications. Next year, when the iPhone 5 is actually, finally released, there's a very good chance it will have NFC, according to a report from DigiTimes.

Citing sources at Taiwan-based smartphone manufacturers, DigiTimes says Apple's new iPhone will be one of several devices to ship with NFC in 2012, although we expect the sometimes faulty iPhone rumor mill to churn on until the device is unveiled next year.

PayPal today issued an update to its Android app that will enable people to make payments to each other via near field communications enabled smartphones. This does not include consumer to merchant payments but rather is a widget geared towards making payments with friends or other PayPal using people that happen to have NFC on their devices.

PayPal has shunned NFC to this point in its mobile payments push. The company's stance has been "it will not be a hard thing for us to implement if we find that it gains popularity." Really, this new NFC sharing widget for Android does not change that stance at all. Peer-to-peer payments in PayPal are a service, not a business vertical. Essentially, this update for PayPal does not affect how the company will approach mobile payments.

PayPal and eBay really want you to know that it is a player in the mobile payments realm. Especially with the holidays coming up and more consumers than ever expected to make purchases from mobile devices. PayPal believes there is a lot of horizontal movement to be made in the mobile payments space and with the power of eBay behind it, the company thinks it will be the leader in the ecosystem for years to come.

PayPal and eBay have come out with new infographics today to show just how well the companies are doing in the mobile realm. It is really kind of ostentatious actually. PayPal specifically realizes that it has lost a lot of the consumer mindshare in mobile payments with everybody talking about how NFC may or may not change how payments fundamentally work. Check out the stats and infographics below.

Payments hardware and software company Verifone today announced the acquisition of Global Bay to bring flexibility to the point of sale to retail stores across the world. Verifone is locked into a battle for mobile credit card readers with the likes of Square, Intuit, ROAMPay, Erply and PayAnywhere. In the retail channel, Global Bay should help Verifone differentiate itself from the pack.

The opportunity for mobile credit card readers is to disrupt the traditional cash register point of sale. Users want to be able scan items from their smartphones and then turn around to the next available clerk and pay for them. The idea is to make the point of sale mobile, even within a retail store.