Mobile payment is no longer just a science fiction, but has become a reality, offering enhanced security, ease of payment as well as efficient tracking. Though the adoption of mobile credit card processing and mobile payments was slow initially, but the number of consumers and merchants who make use of smart phones or other mobile devices for processing transactions has soared greatly.
The mobile payment industry has seen a significant rise in the past few years as almost everyone is using Smartphones that support card readers. Due to its ease-of-use and convenience that it provides, this technology is here to stay. This growth is quite evident from the fact that besides credit card processing firms, the major financial institutions are also investing in the mobile payments. In this mobile era, where mobile payment approaches to make online payments, are reaching the new heights, you would surely be interested in knowing the facts about this trending technology. Before we start, it is crucial to understand what actually mobile payment is.
What Is Mobile Payment!
Popularly called mobile money transfer, mobile wallet and mobile money, mobile payment is referred to as the payment services that are operated under the financial regulation through mobile devices. Rather than paying via credit card, cheque or cash, customers can use their Smartphones to make payment for various services and products. In the developing countries, the mobile payment options have been used as the method of expanding financial services to a community called ‘underbanked’ or ‘unbanked’, which is expected to be 50% of the adult population in the world as per the 2009 Report (Half the World is Unbanked of Financial Access.
The primary models used for mobile payments are:
- Direct Mobile Billing
- Mobile Web Payments (WAP)
- Contactless NFC (Near Field Communication)
- Premium SMS based transactional payments
Mobile Payment Trends
After a few weeks of its launch, Apple Pay supports the cards that show 90% credit card purchase volume in America & can be used in 220,000 outlets from local store to national retail chains. With the success of Starbucks’ mobile payment as validation, customers are expected to make more use of their mobile phones to buy low-priced daily products as a starting point.
Mobile Payment Volumes Are Estimated To Increase By 1000% In 2015
As per Deloitte’s 2015 predictions for the Technology, Media & Telecommunications (TMT) sectors, In-store mobile payments are expected to increase 1000% globally in the current year with nearly 5% world’s Smartphones are being used for making payment in the physical store at least once in a month, which is higher from below .5% in mid of the last year.
Mobile phones are already in use to transfer funds, check balances and other online transactions, however, they are yet to reach mobile wallet. 2015 is predicted to be the first year where the multiple requirements for primary adoption such as satisfying merchants, device vendors, financial institutions and consumers and mainstream Smartphone pre-requisites will be adequately addressed, making mobile payment solutions easier with excellent user-friendly security.
Deloitte expects steady increase in the spending value’s range and volume of transactions using NFC Smartphone with time. The most developed countries are likely to have the largest number of card issuers for activation of mobile payment by the end of 2015.
Global Volume Of Mobile Payment Transaction From 2010 to 2017
According to Statista, in 2012, the global mobile payment volume was 163.1 billion US dollars & in 2017, it is likely to increase to 721.4 billion US dollars. http://www.statista.com/statistics/226530/mobile-payment-transaction-volume-forecast/
Latest News About The Mobile Payment Industry
Alibaba will receive 25% stake in One97 Communications, which is the parent of Paytm (m-commerce firm), as a leading Chinese e-commerce company makes its debut in the swiftly expanding mobile commerce space in India.
Apple Pay, a mobile payment system of Apple, is just 3 months old, but still it accounts for lion’s share of wireless card payments. The iPad and iPhone maker revealed that currently Apple Pay accounts for over two third of the contactless payments.
Samsung is all set to launch its Galaxy Unpacked event in the March beginning and it is believed that the firm will present its new Smartphones with the new mobile payment system, Samsung Pay.
Google is in news for joining the Smartphone payments war with Apple & other brands and has its next step towards acquiring Softcard, which is the recent competitor.
While the Facebook’s plans related to mobile payments are under covers, but sneak peeks have already emerged.
When it comes to mobile payment’s future, there is a fair argument that Smartphone payment isn’t just about payments, but about commerce. It is believed that apart from movement of funds, mobile payment is focused on wider mobile shopping experience. This debate is correct somewhat sense. However, it does not incorporate the payment points like allowing platform to monetize the latest retail industry engagement services and commerce in the growing mobile world.
Being a competent mobile app developer at Appschopper, Ashni Sharma is passionate about learning new e-commerce technologies and techniques. His love for mobile technology enables him to give essential tips to the people through creative and informative blogs related to the mobile apps development. You can follow @ Google+, Linkedin, Twitter