With the advent of technology, smartphones in the hands of the user are the most common
The Future Of Mobile Payments : A Walkthrough
Mobile payment is also referred to as mobile money transfer, mobile wallet, or mobile money.
A consumer can use his or her mobile to send or receive money rather than using those cumbersome traditional methods of payment like cash, cheques, credit cards, etc.
No doubt the concept of using non-paper and non-coin based currency has a long history, but it is in this 21st century that online payment has tightened its grip.
According to the stats provided by GlobalIndex and the report of Global Mobile Payment Market, the annual rate of growth in the market is projected to be as higher as 33 % between the years 2019 and 2026, while reaching at $457 billion in the year 2026.
Also, as per them, out of 10 individuals, at least four people use their mobile phones to do online transactions (for sending as well as receiving the payment). And this figure has doubled in the last year.
Why are these alternate payment methods so enticing?
Today the number of people who use a mobile device (approx. 96 %) is more than the number of people who have a bank account (approx. 89 %). And that’s not surprising stats.
Because today whatever you want to buy or even sell can be done through the mobile device in a few taps and clicks from the comfort of your home, so why would anyone bother himself to go out to do all this that can be done remotely?
And for the same reasons mentioned above, the mobile phone is the most reliable way to bring the consumers without having access to a bank account into the financial equilibrium.
The emergence of mobile payments
Mobile payments are in trend for some time now.
According to Globalwebindex, the first-ever payment was made in the year 1997 by Coca Cola when the company had introduced the vending machines.
Those machines were the source of making amounts via text messages. Further, in the year 2006, Paypal dedicated its mobile payment services in the states of the US and the UK.
Paypal’s venture into a fully-fledged mobile payment service has established the brand as the top choice in 31 out of 45 tracked markets due to its usage by 13 % of the global internet population.
The Emerging Importance of Mobile Payments