While mobile payments are relatively new, there’s an emerging group of people who are starting to re-think how they relate to money, and this tech is the edge of this (See accenture page 21). It’s estimated that mobile payment volume will hit the 75 billion dollar marker with leading the US and China being in the lead for adopters. This number is supposedly small. While growing, most folks are still anchored to traditional payment methods: we are at a point of transition. We are estimating an 80% growth is mobile payment users between 2015-2020.
Things are moving forward slowly, and large corporate establishments have already started to follow the sound of this quiet tune. US Bank is directly tying their flagship luxury card to mobile, incentivizing users with triple purchasing value over mobile purchasing platforms. Google and Apple's mobile payment services are still ferociously competing with one another (Apple Pay’s transaction is up 500% compared to Android Pay). Notably, Google and Paypal are buddying up.
RIght now, there is no clear winner of the mobile payment industry, it’s still young, which means there’s room to influence the trajectory of your customer’s perceptions. The current challenge all mobile payment services are struggling with are how to penetrate new markets, but this is in all likelihood an inevitability (keyword: value). Right now, early adopters of mobile payments appear to be young people and the tech-trendy individuals are going for the newest, most convenient transaction experience with the least amount of hassle. It is worth noting there is a both slow but linear growth in other market segments.
Matthew Koren is the President of Swiftly Paid, a credit card processing and payroll service provider located in Portland, OR. He runs this company in addition to his management consulting practice helping clients implement innovative strategic solutions to business critical issues. You can contact him by filling out the Contact Us page, or by calling 503-765-6940.