Mobile payments are already one of the fastest growing financial sectors globally thanks in part to the adoption of smartphones and other internet connected mobile devices. According to a Global Money Report by the MEF, over 60% of smartphone users have carried out transactions or banking activities in some form via their mobiles and the trend will continue to grow as new types of hardware, services and applications come to market. This post takes a look at why mobile payments seem destined to be a part of our daily lives for a long time to come.
See below for our list of the 3 Trends that Point to the Future of Mobile Payments:
1: The Re-invention of In-store Payments
More and more people are increasingly using contactless payment technology to pay for their everyday shopping in physical stores and the figures will continue to rise as consumer confidence and trust in the medium grows. At present there are now a number of propriety contactless payment options including Apple Pay, Android Pay, and others that are bringing the new technology to shoppers’ mobile devices.
Another factor behind the re-invention of in-store payments is how new payment technologies can also be used by retailers to provide customised and seamless in-store experiences for their customers.
2. Social Media and Commerce
While most retailers already have websites that are mobile friendly, the new trend that is now driving retail sales figures is social commerce. The phenomenon is particularly relevant to platforms such as the Facebook-owned Instagram and Pinterest due to their emphasis on visual images that lends itself to online and mobile retail. The continued integration of these popular social platforms with the payment systems of many established retailers means that mobile payments are the most obvious payment medium in the sector going forward.
3. Second Screen Shopping Opportunities
Smartphones and tablets are now described as the second screen, with most people now spending more time on them than traditional TV. This means that retailers and service providers have to follow the migration to mobile devices by creating second screen shopping opportunities for both existing and prospective customers in order to stay relevant in today’s retail environment.
In conclusion, it is clear that the three trends mentioned above will be among the biggest drivers of growth as well as adoption in the future of mobile payments and that the technology will only improve and is here to stay.