We are seeing a rapid increase in mobile payment transactions each year. For example, eMarketer forecasts a 210% increase in the total value of mobile payment transactions in 2016 - from $8.7 billion to $27 billion. It's not surprising that it's becoming increasingly important for businesses to offer their customers a mobile payment option.
As demand for this technology increases, we can see a number of trends happening in the marketplace. Trends that will help you adjust your business model and take advantage of the mobile payment revolution.
The Generation Gap
Research has shown that age is a factor in the up-take of mobile payment technology. According to comScore, 70% of those who have made mobile payments were 39 and under. Those who are over 62 only account for 3%.
For your business, it is therefore important to concentrate the marketing of your mobile payment option to those of the younger generation as well as design a mobile website that provides a great experience to your users.
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.
From 2015 - 2019, it is expected in North America the growth will reach over 108%. and therefore businesses need to be positioned to implement mobile payment technology.
Facilitate the growth of your business by offering mobile payment options to your customers.
Will NFC Be A Success? It seems the jury is still out...
NFC stands for Near Field Communication technology - in other words "touch payment technology". Consumers are the ones which ultimately decide whether this technology advancement is a value-add and thus far, it seems the jury is still out.
"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 a 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.
Time will tell if customers buy-in to the ease of use of NFC technology. Keep an eye out and decide if it makes sense for your business!
This guide will walk through the wide range of features required to automate your recurring billing, subscription management, and payment process.
Bluetooth Low Energy (BLE) Will Replace NFC
From the failure of the NFC to conquer the market will come BLE.
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 hundreds of million iOS devices and many Android devices support the application.
The Holiday Market Will Explode
On the 2014 Black Friday, 2 out of every 5 purchases was made by a mobile device.
It is expected that this figure is likely to increase further on the 2015 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 the day.
The mobile billing and payment 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.