Proximity mobile payments are believed to be the next step in the ever-growing relationship between buyers and sellers. A recent study by eMarketer is predicting the rising tendency in proximity mobile transactions to go up by 78,1 percent compared to the previous year. Indeed, with the rapidly growing smartphone users around the globe, mobile payments is an inevitability retailers and producers will have to keep in mind if they want to stay up-to-date with the market reality.
What exactly are proximity mobile payments?
Proximity mobile payments, as its name suggest, involves entities that are close to each other to indulge in monetary transactions. Similar to a debit or credit card, you can use your mobile phone to perform a wide range monetary transactions like paying for food at a restaurant or grocery store. Using only their smart phones, people either scan, tap, swipe or check in with their device to complete any transactions. And these modes of payments will witness an explosion in the future as more and more people have their mobile phones with them wherever they go.
The research is positive about the rise of proximity mobile payments
The research commended by eMarketer is positive that the growth rate will stay at double digits for at least the next 4 years, albeit a slow-down in 2021 by 23.9 percent. It is expected that mobile payments will play a much greater role in our day-to-day transactions. In the coming years, the research predicts mobile payments to account for approximately $189.97 billion for the buying of goods and services at physical points of sale. As a matter of fact, consumers are more willing to pay with the simple tap on their phone than counting bank notes or carrying around a bunch of electronic cards for buying stuff.
More businesses are willing to adopt mobile payments
With retailers always on board for the adoption of newer technologies for trade or any other business purposes, the transition to mobile payments is going to be fast and easy. As consumers, we’re going to be more responsive towards those making it easier for us to pay for stuff that we have bought. No matter the price of the item, its cheapness or expensiveness, as long as there is a simpler method of payment, consumers will adopt it. Both retailers and consumers will get their share of satisfaction when using and accepting proximity mobile payments, not only because it is simpler, but also more stylish and popular.
Mobile payments have already witnessed consequential growth in 2017
In the US alone, proximity mobile payments are predicted to surpass the $1,000 dollar bar to reach $1,026 dollars per user. This innovative and easy payment method is bound to grow by leaps and bounds over the coming years, confirming the predictions of the research, and the expectations of people in general. According to eMarketer, the figure of mobile payments will reach around $2,646 per user. That is, each person’s spending is going to more than double, making mobile payments the most dominant method of monetary transactions around the world.
Why use your mobile to pay when you have a debit card?
It is a pretty fair question because cards are not as heavy as smartphones and it easily fits in the wallet or your pocket. However, cards can easily get lost, stolen or broken. And honestly, most people don’t have one but several cards in their pockets. What mobile payment does is integrate your debit or credit cards inside the phone. It is like carrying several cards around in one same app. And, it is easy, simple, secure and beneficial to the environment as users are provided with electronic receipts instead of printed ones.
How secure are proximity mobile payments?
Apart from being easy and convenient, proximity mobile payments have multiple layers of security at each stage of the process to keep your data safe. Using the Near Field Communication (NFC) technology, your phone is equipped with an appropriate smart chip for completely secure payment application and the protection of consumer account information. By simply waving your phone near a point of sale, your money is effectively and safely transferred to the desired destination.
Merchants and retailers can capitalize on this novel method of payment
Since it is easy and fast, retailers can widely benefit from proximity mobile payments to increase sales. It can help build stronger relationship and loyalty with customers as it is a more convenient method of payment. Indeed, with fewer requirements to handle, like counting bank notes and coins, proximity mobile payments provide operational efficiencies. And, it offers a larger scope for mobile marketing as retailers can focus on specific groups for certain products or special sales on useful items like diapers or jewelry.
Financial institutions can partner with merchants
As it is already the case with your current debit or credit cards, financial institutions can associate with retailers of their choice to offer proximity payment users discount at specific point of sales. It is a positive way to encourage consumers to adopt this innovative means of making payments. Not only will it increase sales, but also convince consumers to be loyal to a particular brand. Retailers can use all the payment data to better help and inform customers about the arrival of new products or last minute sales.
A mode of payment that is effective anywhere and a anytime
There will come a time when both merchants and consumers will be NFC (Near Field Communication) compatible for transactions at anytime of the day and in any location. As a matter of fact, proximity mobile payments will inevitably become part and parcel of our everyday habit once your favourite shop around the street corner also adopts this simpler method of payment. It is only a matter of time before retailers, businesses and merchants adopt this new technology, changing the whole landscape of proximity mobile exchanges.
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