Mobile payments is an extremely hot space right now. The opportunity to be THE way people pay for things is huge, and thus big tech companies, startups, and large financial organizations alike are furiously developing technology to gain ahold of our wallets. PayPal, Square, MasterCard, Braintree, Google (and a string of others) are all jockeying to be the number one mobile point-of-sale system and/or digital wallet, and a couple weeks ago a mobile payments startup called Clinkle raised $25 million in what was said to be the largest seed round in Silicon Valley’s history. Despite these efforts, consumers are still relying on other forms of payment. ComScore released a study which found that only 12 percent of consumers use a digital wallet, and far fewer (if any) use it exclusively. Yesterday at MobileBeat, industry experts discussed some of the obstacles to widespread adoption and what it will take to phase out credit cards and cash from our daily life. One of the biggest challenges is the ol’ chicken-and-egg problem — without merchants, you have no consumers; without consumers, you have no merchants. Enough businesses don’t have mobile payment options to make walking around wallet-free a challenge. Another major obstacle is convenience. PayPal’s CTO James Barrese said that mobile payments still involve too much friction. It is still easier to whip out a credit card in a store than enter all that information into your phone. The experience has to be one-touch, and add more convenience and value to the consumer. Security is another concern. Get the full story at VentureBeat