Moving With The Mobile Payments Industry
The world of mobile online payments is exponentially expanding with every purchase made from a smartphone. These purchases are increasingly popular due to the emergence of digital wallets well as websites that are easy to navigate and cater to such purchases. With mobile online payments, convenience is a virtue and it’s drawing consumers to spend more than ever.
In-app and in-browser purchases, which accounted for more than $122 billion in sales last year are set to jump to $319 billion by 2020, according to Javelin Strategy & Research. Additionally, mobile proximity payments will rise from $10 billion to nearly $92 billion during the same time span.
Mobile proximity payments basically means paying for goods and services with a mobile phone at a physical point-of-sale (POS) terminal, via tapping, waving, or other similar functionality. This method of purchasing has been in practice for a few years and is made possible using Near Field Communication (NFC) technology.
It’s clear that purchases made through mobile proximity methods will increase in popularity and use in the very near future, and eMarketer predicts that by the time 2016 ends, there could be as much as a 210% increase of these payment methods. Simplifying shopping for consumers and adding to the convenience of the entire experience will be an important trend to keep up with going forward.
Digital wallets are already a major player as consumers look for ways to simplify their payments and in a few years, they are positioned to be a preferred method. Many digital wallet providers have programs that allow consumers to sync or merge payment info into a central location. Congruently, Emmett Higdon, director of mobile for Javelin, claims that “mobile wallet ‘convergence’ will create value by simplifying users’ choices when it comes time to pay” whether online or in-store.
Brick-and-mortar merchants will be expected to adapt accordingly as shopping simplicity increases and at some point in the very near future, they’re anticipated to install POS systems that accept more than just credit cards.
Challenges will include the ever-present potential security and fraud issues and the fact that merchants might be a little hesitant to adopt new ways of accepting payments for purchases. However, smart storefronts will cater to the needs of their customers, helping to promote sales as well as future business.