Mobile payments space: how customers shape the industry

24 December 2016

The long-established payment mechanisms are being conversed as a result of expanding competition in the midst of new growing businesses. According to the latest data, mobile economics reached approximated US$972 billion across the number of markets. Moreover, mobile payments are awaited to attain US$ 3 trillion in 5 years.  As huge as it may sound, that amount of money is just a tip of the iceberg when it comes to all consumer card payment volume, 11 percent to be precise.

Mobile payments came to stay, that much is clear, and different brands and shopkeepers want to grab a piece of the pie. Read our highlight of the latest trends in the mobile payments industry noticed during the year.

Market of the young

It won’t be a revelation to say that a new generation is fond of up-to-date technologies, considering nobody leaves their houses without their portable devices. But not only they are ready to spend their money via mobile, they quickly embrace all new trends and fashions, digital payments included. As a result they will give mobile commerce the ability to grow even further by buying more goods using their phones and tablets.

As young as they seem to be, the millennials, who came of age in the 21st century shouldn’t be underestimated by other generations, taking into account they controlled more than one third of gross earnings, in correlation with other groups. In 10 years, with their children added to the equation, they will be in control of half of the said earnings, if the predictions are correct, which leaves no doubts the youngsters of the future along with their grown parents will have a huge value for the developers of new mobile payment technologies.

Market of the young

Food and book orders

Purchasers usually prefer to buy cosmetics, perfume, items of clothing and personal goods in supermarkets or huge “offline” shops, in accordance with latest surveys, while goods connected with travelling are usually bought online, considering frequent discounts and bonuses.

That indeed induces web developers create a variety of mobile apps that are useful and convenient for mobile payments, the most popular areas being food delivery and e-books, magazines and music purchases, which can definitely save your time and energy. One fourth of the food delivery orders are implemented through mobile gadgets, and one fifth of the said delivery are actualized through computers. Thus, it can be stated that food delivery is on the list of the most required services when it comes to mobile payments.

Instant service

As for the customers who like making other orders, they have got tired of waiting this year. No wonder that next year they are going to want their purchases such as books, furniture and new gadgets to arrive faster than in a few days. With the further development of mobile apps, the consumer service will have to become much faster, because the convenience of online shopping just won’t be enough anymore. They purchasers will also be able to have an instant update on the delivery status if they decide the wait is taking too long. That way the portable devices will boost the economy.

Chinese leadership

Chinese customers are always on the go, which is why they make almost all their online purchases using their mobile phones, not their computers. This year China is, without a doubt, a leader, controlling over a half of mobile purchases worldwide.

Chinese leadership

The app developers can be praised for attracting more consumers to the on-the-go consumption as well as mobile devices creators. It all has resulted in mobile customers making over US$550 million in mobile payments this year. More and more Chinese people are ready to embrace the new era of mobile purchases, even in the farthest corners of Asia. Based on that, the even bigger success of mobile payments there can be predicted.

UK and US to be ‘sprinters’

In five years time both of these English-speaking countries are estimated to catch up with China in the “mobile payment” race. While only one fifth of all U.K. payments has been made through electronic gadgets, it is predicted to grow up to one third in just a few years. As for the United States, they are predicted to be the “sprinters” and increase their mobile purchases by 26 percent, taking almost a half of the market in 4 years.

Proximity payments

Distant mobile payments are going to become even ‘bigger thing’ now that so many companies are offering the platforms for proximity payments. Those payments give the consumers the way to use their mobile gadgets as a way of payment without using the actual credit cards. The United States can be called the most successful market, having earned over US$ 33 billion in the field of mobile payments.

Bluetooth rising

With the upcoming versions of mobile devices, Bluetooth is going to gain popularity again. Since the consumers are used to have wireless internet and wi-fi everywhere they go, it will give Bluetooth the opportunity to grow in combination with mobile payments. Next year it will finally be upgraded enough to be used for purchasing purposes.

Digital assistants

Using your interests and search history online helpers will be able to be even more of use in the future. Not only will digital assistants offer you the new versions of goods you used to look for, they will also tell you where to find special discounts and exclusive offers. That, in turn, leads us to believe the users will have closer relationship with their portable gadgets next year.

That proves people are eager to spend their money online, finding mobile payments convenient and useful. Our mobile phones will soon be able to know our needs more than some of our friends. The countries will continue their competition for the place in the sun by finding new ways to make mobile payments more popular. In order to occupy even bigger part of the market, the creators of mobile payments will need to provide more security and be even more client-oriented, but they have been doing well so far.

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