Exploring The Future Of Mobile Payments
Mobile payment, as the name suggests, is the payment done via a mobile device under financial regulations governed by laws.
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
The number of mobile users has surged dramatically, having increased from 37 % to 71 % in the past three years.
Today maximum people use smartphones for doing increasing stuff of activities, from watching movies to playing games and networking to shopping.
The disintegration of Physical Payment Cards
The emerging growth and craze of consumers towards digital payments is naturally heading towards the downfall of paper or coin-based physical currency.
Debit and credit cards are still in place as the modes of non-cash payment.
As per the data provided by AlliedWallet, more than 70 % of the Americans use at least one credit card for the payment purpose.
While approx. 5 % of Americans have more than five or more credit cards. In other words, the use of credit cards is ubiquitous among those people.
Corroboration digital payments
The convenience of mobile devices is not everything. It is the security that matters a lot!
And the secure base provided by the digital companies is what makes the consumers continue to adopt mobile wallets in the future as well.
Many companies offer dual corroboration using a mobile wallet. However, for that purpose, they are making use of mobile apps. So, you should find out the cost to make an app. It will surely help you all in the long run.
Many smartphones have the biometric authentication features to ensure that the only authorized user of the apps could make purchases from his or her smartphone.
Others are just barred from making any transactions to prevent any fraud.
The emanation of NFC and BLE
Near Field Communication (NFC) technology and Bluetooth Low Energy (BLE) are the emerging technologies that even the most popular mobile wallets, including Samsung pay and Apple pay, rely on these technologies.
Near Field Communication allows customers to make a purchase just by holding their phone to a credit card terminal.
It is not only convenient, but it has drastically speeded up the time that customers spend in the checkout line.
It also explains why the global NFC market is hovered to grow at a CAGR of around 17.9 % over the next decade to reach approx. $ 49.5 billion by the year 2025.
Just like NFC, Bluetooth Low Energy takes place on either the consumer on the merchant’s device where data is stored in a mobile payment account.
What next? More power to the people
As with the emerging technologies, we will first see propagation where more brands introduce mobile payment options to the market, followed by a break.
We are still witnessing the expansion stage, which is likely being there for another 18 months to three years.