While it initially got off to a slow start, the mobile payment market is now growing at a dizzying pace. In 2016 alone, U.S. consumers bought $47.6 billion of physical goods via remote mobile payments. Across Europe, mobile payment use increased 200% from 18% in 2015 to 54% in 2016. Furthermore, in the U.S., mobile wallets are expected to surpass the use of both credit and debit cards as early as the year 2020.
It’s becoming abundantly clear that people are beginning to favor the option of contactless payments. What does this mean for the way we shop? Let’s take a look.
Millennials will lead the charge.
There’s lots of talk about how to market effectively to the millennial generation, but it’s equally important that businesses make sure they’re adequately accommodating this demographic once they’ve gotten them through the door. With a buying power of more than $200 billion annually, providing convenient, user-friendly options – like mobile pay – will be necessary to keep these tech-savvy shoppers satisfied.
Driving the on-demand economy.
Today’s consumers have come to expect more seamless buying experiences and instant gratification, including fast order fulfillment. In many cases, having to wait two days, such as through services like Amazon Prime, is simply not fast enough. The option of using a mobile wallet is ideally suited for this on-demand mentality because it allows users to manage their entire shopping experience on their smartphones. From payment and tracking to updates, pickups, deliveries and returns – consumers enjoy complete control at their fingertips.
Digital assistants are improving lives.
The use of digital personal assistants, like Apple’s Siri and Amazon’s Alexa, has forged a new relationship between people and their smart devices. Not only can these assistants help consumers make better purchasing decisions by providing helpful insight based on online searches and behaviors, but they’ll be also able to close the loop by facilitating seamless mobile payment processing. The more users begin to rely on these virtual services, the more dependent they will become on their mobile devices.
A newer, better sharing economy.
Continued innovations in mobile technology are driving further growth and evolution of the sharing economy. Consumers are becoming more and more used to on-demand, fast and convenient ways to share services and cut costs. This increase in digital collaboration will naturally lead to an increase in demand for more advanced mobile technologies – including the ability to pay instantly and securely with the simple click of a button.
As you can see, the impact of mobile payments expands far beyond simply offering the ability to click and pay with a smartphone. There is a direct correlation amongst a variety of digital technologies which will continue to merge and morph as time goes by. For now, businesses would be wise to keep their fingers on the collective pulse of