Mobile payment is one of the latest methods you can offer clients to pay for goods and services from you. In the last few years this technology has become more accessible to both businesses and consumers.
As use for the technology increases we can see a number of trends which have been prevalent in the market place. Here is a breakdown of those trends and how you, as a business, can adjust your business model to take advantage.
The Generational Gap
Research has shown there is huge difference in the up-take of the mobile payment method. 70% of those who have made a mobile payment were 39 or under. Those who are over 62 only account for 3%.
For your business it is important therefore to concentrate the marketing of your mobile payments facility to those of the younger generation. The older generation are unlikely to accept the offer of its use.
Mobile Payments Are More Than Doubling
The use of mobile payments increased 118% over the past five years. While this only represents a small share of the total credit and debit card volume (2% in the US and 4% globally) the growth is still impressive and in future years it is likely to claim a bigger share.
In 2014, it is expected in America the growth will reach over 108%. Therefore businesses need to be prepared to accept this payment revolution, especially those businesses in retail, apparel and the shoe industry.
Therefore you need to ensure you are keeping up with the trends by informing and allowing consumers to pay via mobile payments.
NFC Will Not Be A Success
Consumers are the ones which ultimately decide whether certain aspects of this revolution will work and thus far, NFC has not been proven to be compelling enough for a large up-take by consumers. As PayPal President David Marcus has been quoted as saying:
“Instead of swiping or using a PIN pad, they’re tapping. How is that really better? How is that changing your life? People don’t want that.”
NFC won’t disappear altogether; it has good influence in the Asian markets and is likely to stick around there. But unless there is a change, it is highly unlikely to dominate the American and European market.
Bluetooth Low Energy (BLE) Will Replace NFC
From the failure of the NFC to conquer the market will come BLE. In 2014, it is likely this versatile application will take over the mobile payment industry. With a range of up to 50 meters the application can perform a variety of tasks including payments, peer-to-peer transfers as well as keeping the user notified of offers as part of store loyalty programs.
The consumer will find this system much more of a convenience than with NFC. Bluetooth Low Energy has already been downloaded on over 200 million iOS devices and many Andriod devices support the application.
The Holiday Market Will Explode
On the 2013 Black Friday, 1 out of every 5 purchases was made by a mobile device. It is expected that this figure is likely to increase further on the 2014 Black Friday and the figure could be as high as 33%.
Therefore your business needs to be prepared for this date to ensure you aren’t missing out on vital sales on this huge business making day.
The mobile payments market is increasing and now is the right time to get your business involved and optimized. Offering consumers an effective and time efficient method of payment will help improve their loyalty to your brand.
Align your mobile payment system using the statistics above and make your payment system fit with the growing trends.