In the past decade, we have seen drastic changes in the way we do things of our daily lives. Technology has indeed has brought much convenience. And one of the most convenient things to do is making payments. Ecommerce development solutions are also headed towards making mobile payments more convenient with the passage of time.
Mobile payments are now the new way of payments across the world. It is convenient, fast and reliable. Although few people are still adapting considering the trust issues due to hacking and security breaches. But, we all are overcoming this and mobile payments are simply the way to go!
See the Growth Here!
- In store mobile payments will reach $503 billion by 2020, reflecting a compound annual growth rate (CAGR) of 80% between 2015 and 2020. (BI Intelligence)
- In the US, the mobile wallets are expected to surpass the use of both credit and debit cards by 2020. (WorldPay)
- 70% of millennials identified rewards and/or discounts as the most compelling motivational factors for making mobile payments. (Pew Charitable Trusts)
- 80% of Americans have never used a contactless payment system, compared to 80% Australians and Brits who have. (Recode)
- In Europe, 74% is using a mobile device to make payments and manage their finances. Mobile payment use across Europe significantly increased last year, jumping 200% from 2015 (18%) to 2016 (54%). (Mobile Payments World)
From barter system, exchanging metal and gold to membership & credits cards and recently electronic payments. The way we do transactions has changed and we have come a long way.
The first change card was brought in 1921 for Western Union Customers and then later just everyone started to use change cards. The credit cards came existence in the 1950s when BankAmericard was founded in 1958. The card became VISA in 1997.
In 1998, PayPal was founded and then in 1999 Ericsson and Telnor Mobil launched mobile phones that could be used to purchase movie tickets. By 2003, there were 93 million cell phones users worldwide that would make through a mobile device. And 2007 iPhone and Droid operating systems were released that have made online payments possible today.
The convenience in of mobile phones is changing the way consumers have started to purchase. Also, the need to have secured ways to pay gave rise to mobile payments. Mobile app development consulting companies are working towards creating more advanced ways of mobile payments that will eventually be a part of just managing all our transactions.
Kinds of Mobile Payments
There are four kinds of mobile payments, see below:
- Contactless Near Field Communication
- Premium SMS Based Transactional Payments
- WAP Billing/ Mobile Web Payments
- Direct Mobile Payments / Mobile Billing
This evolution is happening faster than anticipated. With the more eshoppers and big brands opting for online portals for share, the industry is looking at many technology innovations to meet the expectation of their customers. So even mobile payments are evolving.
Recently, Google announced ‘’ which is a new mobile payment system that uses Bluetooth or WiFi. There is news that soon there could be Facial Recognition to confirm an individual’s identity. Also, big banking institutions are collaborating in order to form venture called ‘clearXchange’ that will let customers transfer funds to other bank accounts with the help of their mobile phones.
There are other advanced mobile payment systems like Apply Pay, Samsung Pay and Android Pay that are taking mobile payments to a whole new level. And with IoT bringing heavily geared gadgets like wearables, these mobile payment solutions will not be limited to your mobile phones. You may see them with your smart watch or fitness belts. Consult website design company in case you wish to integrate a mobile payment system in your website or eCommerce solution. Don’t wait till you become outdated, see the signs and act on it now!
Hopefully, this was useful. Stay tuned for more.