Mobile Payments are predicted to take off in a big way in 2015 and are truly the trend of the future. 2014 has been a good year with the high profile launch by Apple (with an estimated 1 million cards registered in just the first 3 days) and this will help drive future growth in the segment. As a result, there now seems to be a happy nexus of several major mobile payment system launches world-wide, as well as more consumer acceptability that makes 2015 the year of greatest potential growth.
Over the last few years more people, in many different regions from Africa to Kuwait, have become increasingly comfortable with the idea of mobile payments. They have been impressed by the promise of ease and convenience and also convinced about the benefits that freedom from cash provides.
Some of the predictions we can make for mobile payments in 2015 are:
More Business Acceptability
Businesses are now ready to embrace innovation in payments. That is why more and more companies are recognizing the benefits of mobile payments and welcoming them as a way to increase footfall through their bricks and mortar stores as well as online sites. They know that faster transactions will help build greater customer loyalty and increase sales, which is the desired result of all enterprises.
Greater Consumer Acceptance
More consumers will embrace these frictionless payments as way to enhance their shopping experiences. 85% of the world population has a mobile, so using these phones for making payments can soon become the norm, as more people try out and adopt this convenience. As the trend grows, shoppers will feel comfortable using and recommending mobile payment solutions.
The Growth of Contactless Payments
The growth of near field communication (NFC) technology will make purchasing as easy as tapping a phone. The relevant amount will then be deducted quickly and safely without any other unnecessary transfer of confidential information. This technology will help drive global commerce and usher in a new era of payments. According to Juniper Research, NFC is estimated to facilitate USD 74 billion in transactions by 2015.
Shift towards a Cashless Economy
The move towards a cashless system will make the need for carrying exact change and actual wallets obsolete. Especially for smaller payments such as bus fees or parking fares, mobile payment solutions are the ideal option and will decrease time wasted in line paying dues. Also cash notes can be lost or stolen, but even if your phone is taken, your mobile balance stays protected. Cash now seems like an old-fashioned method of payment and the thought of carrying currency in an often uncertain world is fast losing its appeal.
Many more consumers will feel comfortable using a safer, more secure technology like electronic wallets. These are so much more secure because they are PIN protected in case of loss. Unlike paying with credit cards, there is no need to share any confidential information whilst paying for goods and services.
As more shopping moves online, mobile payment solutions give an added incentive to consumers as they can enjoy more flexibility around the clock and across the globe. Now they can shop and pay whilst on their daily commute, away on vacation or anytime and anywhere. Since more people around the world have mobile phones than actual bank accounts or credit cards, mobile payments will give a boost to an already massive online market place.
Many developing countries that have limited access to banking facilities will embrace these mobile payments as an easy way to provide financial inclusion to their fast growing populations. These will especially help with the growth of microfinance payments and create new opportunities for many economies.
Mobile phones and Mobile Network Operators (MNOs) are seeing exponential growth across the world. MNOs will see these payments as a way to provide greater value to their consumers and an added benefit for signing up with their networks. There will be greater consumer engagement and more chance of usage when these mammoth networks are involved.
The MNOs will also gain prompt payments which will benefit businesses worldwide. All transactions will be PIN protected and will reduce the likelihood of any misuse or theft which will enhance the growth of transactions.
Mobile payment systems will drive business growth and consumer confidence which will help economies to grow and flourish. This will help enhance consumer well-being and lifestyle and lead to positive impact globally.
The year 2015 is poised to be the year of mobile payments and countless factors are at play to make this possible. Greater business innovation, more consumer acceptance, the growth of mobile networks and strong phone sales worldwide all make mobile payment systems the way of the future.
Author’s Bio: Syed Irfan Ajmal is a serial entrepreneur with his latest project being Inbound.Zone. His Twitter handle: @SyedIrfanAjmal