As cash payment is slowly dying, mobile payment is being seen as the embodiment of all our future payments. Gaining ground rapidly mostly for security reasons and unrivaled convenience, this mode of payment is definitely revolutionizing payment solutions around the world.
Mobile payment is generating massive revenue
Starting from 2015, mobile payment is witnessing a spike in terms of revenue being generated. Globally, mobile payment revenue in 2015 amounted to 450 billion US dollars and in 2016, it reached a total of 620 billion US dollars. By the end of 2017, mobile payment revenue is predicted to attain 780 billion US dollars while by 2019, it is expected that the figure will exceed the whopping 1 trillion US dollars.
Why is there such zeal behind mobile payment?
Mobile phones have literally become an extension of us. Most people always have their mobile phones handy as we are relying on these devices more an extensive array of day-to-day operations. One of the reasons mobile payment became so popular is that it is based on our mobile phones that are already being carried along. It does not necessitate a different mode of operation, thus being very convenient.
Mobile payment is already being extensively used for various transactions like purchases on Amazon, sharing of payments on Venmo or handling of payments on banking mobile apps. As the consumer preference for payment is witnessing a shift, companies are keeping pace by innovating and doing their best to respond to this new preference.
Moreover, there are numerous concrete factors boosting this new trend:
Cash is not convenient
No one wants to carry along bulky wallets. Cash payment is not convenient as one has to do several continuous trips to the bank and back to have cash handy. Of course, no one likes fumbling desperately- and irritatingly at times- for change during checkouts. According to a survey carried out by Business Insider in 2015, 40 percent of millennials stated that they would happily give up cash payment entirely if possible.
On the other hand, mobile payment represents ease and convenience. Checkouts are faster both for consumers and retailers. And it is equally more sustainable and safe for businesses not having to rely on armored vehicles to come to pick up cash.
EMV cards are still slow
It is true that Europay, MasterCard, Visa (EMV) chip cards represent a high level of security and does mitigate payment fraud. However, the drawback of these cards is that the processing time at checkouts is quite long. Consumers no longer want to stay waiting and feeling frustrated.
Mobile payment, on the other hand, is both secure and rapid. With just a simple click or a tap, a transaction is processed, making the checkout process very quick.
Mobile payment is as secure as EMV
If EMV chip cards are largely promoted for their security level, mobile payment has reached a similar security level as well. Based on the Near-Field Communication (NFC) technology, apps like Apple Pay, Google Wallet and Samsung Pay are as secure as EMV cards. Apple Pay offers further security by adding a fingerprint authentication to reassure consumers and retailers.
Digital receipts instead of humps of paper
Hard copies of receipt easily overwhelm consumers. Apart from being an impediment when one has to stack them, they are equally easy to be lost. Mobile payments bring an added facility through digital receipts. Many retailers offer this feature that allows you to have a safe record of your purchases online.
Mobile payment is undergoing high-end evolutions
Mobile payments are not going to stay limited to smartphones and tablets. As more companies are rolling out new mobile payment apps, the next type of mobile payment in the very near future is bound to be wearable tech gadgets such as:
- JawboneUP4- the high-end fitness app that furthermore allows payments for items at stores
- bPayBand- jewelry, watches, wristbands or even keys smartly designed to allow contactless payments by Barclays
- Lyle & Scott bPay jacket- the fashionable smart jacket supported by Barclays that allows payment at stores by placing the sleeve near the point-of-sale device
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