Mobile payments predicted to increase drastically in 2017
The industry leaders in marketing news and mobile payment trends are predicting that mobile payments will finally gain some long-overdue momentum this year. The movement towards contactless payment options with consumers is giving mobile payment apps a much-needed boost.
Mobile payments are more popular
While the love of apps is slowly fading, making it hard for brands to get their app on a user’s phone, mobile web pages are seeing an increase in usage. Voice input is increasingly popular in the world of uber-convenience, and menu commands have become the norm for navigating devices. And with the convenience and speed that comes with mobile payment, more transactions are being processed via mobile devices.
Retailers are updating their POS hardware
One of the major inhibitions for mobile payments has been the point-of-sale (POS) hardware being used by retailers. The move to upgrade the technology has always proved too costly for many retailers, preferring to stick with what they know. However, with the move towards chip-enabled credit and debit cards in the United States, the hardware is finally being updated to avoid being responsible for fraud. This is of immense benefit to the mobile payment systems, bringing the latest technology into the hands of merchants.
And retailers are now discovering that mobile payments bring more than just a faster option to process a transaction. The use of mobile wallets and contactless payments gives retailers the opportunity for mobile advertising, customer retention, loyalty programs and that age-old method of advertising – word of mouth. With the introduction of mobile payment POS systems, retailers can give a much better customer experience – including on-the-spot surveys – and increase the potential for customer recommendations.
Mobile payment systems can benefit mobile advertisers
Mobile advertising budgets have increased dramatically, but without much to show for it in terms of return on investment (ROI) metrics. According to BIA/Kelsey, an independent market researcher, an estimated 12 billion dollars was spent on mobile advertising targeting local audiences in 2016. That is an increase of more than 2 billion dollars from the previous year. But the big advertisers are relying on real-time data for their consumer insights, rather than targeted or customized offers. The best way to obtain data to prove mobile advertising has driven sales is through the use of credit cards, coupons, or in-store sensors. Mobile payment POS systems are the answer to getting data from all three sources together.
According to the data from Street Fight’s survey of the big, national-to-local marketers in 2016, around one-third of the big brands that used mobile advertising have shown an interest in exploring the potential of mobile wallets. Mobile advertisers are more specific in their use of the analysis tools and advertising/marketing management when compared with other brands of advertisers and retailers. The use of digital dashboards, data aggregators, and social media management tools is more prevalent as well.
Since more than 50 percent of those surveyed rated email as an effective marketing strategy, there opens up opportunities for mobile campaign and email coordination. And around thirty percent thought customer security was a major concern rather than integrating the various technologies into a working system. For many mobile advertisers, the potential in mobile payment systems could prove to be to their benefit.
Mobile payments will increase this year
In a consumer study by Visa, 18 percent of those surveyed said they already use mobile payments for food and parking and intend to increase their use in the coming year, and 26 percent expressed an intention to move to mobile payments in 2017. However, while the apps and smartphones are becoming increasingly popular, some retailers and merchants are yet to make the transition, making the service unavailable with selected brands. This has been predicted to change through 2017, with the majority of retailers adopting the more secure POS systems, which will allow the use of mobile payments.
It is estimated that around 70 percent of American mobile phone users will make a mobile payment before the end of 2017. And mobile payments in total are expected to total around 60 billion dollars in 2017 and around 503 billion dollars in U.S. sales by the year 2020. Clearly, the retail industry is hurtling headlong into the mobile payment era, and retailers who do not implement the mobile payment solutions will soon be left behind.
Forward thinking to choose the best solutions
Rob Cameron, Chief Product and Marketing Officer for Moneris Solutions, said, “The growth of contactless transactions — whether it’s a card you can tap-and-pay with or a mobile device with a digital wallet — will accelerate in 2017.” There has been a double-digit increase in mobile payment growth in recent months in Canada, and mobile payments in the United States are expected to grow just as quickly as the transition to EMV technology continues. Many businesses are already thinking ahead, and looking for EMV solutions that will also support contactless payments, to future-proof their upgrade.
Accepting mobile payments is critical to business
With the new consumer interest in contactless payments and efficient checkout options, businesses need to set up their solutions to succeed in this area. Apple Pay, Google Wallet, Android Pay and Samsung Pay are continuing to expand exponentially in North America, and around the world, proving the importance of accepting mobile payments. Consumers expect to be able to pay in whatever method suits them at the time, and businesses must evolve to meet their customer’s expectations.
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