2019 promises to be one of the key years for mobile payment growth. A well-known SalesForce study confirmed that more than 60% of e-commerce traffic was monopolized by mobile consumers. This very revealing data demonstrates the influence of mobile devices in the purchase and sale of online products.
But what’s behind the growth of mobile payment? Increased security, customer experience or the boom of payment gateways and e-wallets (such as Venmo, Square Cash, Amazon Pay, etc.) are just some of the causes. Before delving deeper into these and other factors of mobile payment growth, we will discover what the expected figures for 2019 and 2020 will be.
The growth of mobile payment, on the way to 1080 million dollars at an international level
In recent years the growth of mobile payment has known no limits. In 2015 its turnover reached 450 million dollars, in 2016 exceeded the figure of 620 million, and a year later exceeded 780 million. In 2018 there was a surprise: 930 million dollars. During the present years, forecasts remain optimistic: 1080 million dollars, according to data from Statista.
Paying through mobiles is fashionable. As could not be otherwise, various applications, devices, and appliances have joined this trend. A good example is Alexa, Amazon’s virtual assistant that allows voice purchases in this marketplace.
But mobile payments are not only growing in European and American ecommerce. China is an emerging power in this sense. Its main companies have not hesitated to position their own gateways and e-wallets in the market. Good examples are WeChat or Alipay.
Beyond 2019, the growth of mobile payment is also promising. According to an investigation by BI Intelligence, payments via smartphone will exceed $ 503 billion by 2020. Everything seems to indicate, moreover, that 2021 and 2022 will be years of growth or consolidation, according to less ambitious forecasts.
Why this boom? 4 factors of mobile payment growth
The desktop consumer is dying, and the above figures confirm it. In the following lines we will address a number of factors that have led to the boom in mobile payments:
A plus for the customer experience
Improving the customer experience has been the key to the success of marketplaces such as Amazon or eBay. It’s not surprising, then, that the growth of mobile payment is also related. Indeed, navigability improves in many ways with the use of smartphones and tablets. Most ecommerces have responsive designs, which adapt perfectly to the needs of the mobile user. Due to the almost always superior convenience of navigation on these devices, more and more users are betting on them for shopping.
Supported by the increase in e-wallets and other online payment apps
Demand and supply tend to meet and balance. The same has happened with the boom in mobile payments: it has been accompanied by a wave of launches of apps and e-wallets, destinations to facilitate mobile purchases. Good examples are Venmo, Cash App or Google Pay (bord from the merging between Android Pay and Google Wallet), as well as the aforementioned Ali Pay, Amazon Pay or Apple Pay.
Various mobile payment trends also seem to herald the ‘death’ of cash. For example, the use of ATMs to deposit and transfer money has been drastically reduced. What has taken its place? You guessed it: the mobile.
Although it is still premature to make predictions, it is clear that if cash disappears, mobile payment will absorb a large share of this market.
Another factor in the growth of mobile payment is security. Apple Pay, Android Pay, Amazon Pay or Samsung Pay are slowly overtaking traditional credit and debit cards. This latter method of payment, however, continues to dominate. But its superiority is decreasing. This proves two things:
● Buyers’ confidence in mobile purchases is increasing year after year. However, there is still some fear among users. But this is due to a lack of knowledge of the technology used by payment gateways and e-wallets.
● In the future, credit and debit card providers will have to face Apple Pay, Android Pay, and other e-payments, because the trend is clear: in the coming years will be overcome.
In addition, cybersecurity specialists recommend the use of e-wallets over credit cards. They’re safer, they say. Why? Because they use tokenization to effectively encrypt customer data. When mobile users enter their bank accounts and passwords, these platforms replace those data with a token, almost inaccessible to cybercriminals.
Perfect for mobile consumers
Was it necessary to mention it? Of course not! As we mentioned in the SalesForce study, most ecommerce traffic comes from mobile devices. A decade ago, users had to resign themselves to shopping from their computer or laptop. That’s why Ali Pay, Amazon Pay, and other platforms have been a breath of fresh air for these consumers.
For the mobile customer, the use of these devices is ideal. Making payments via smartphone also reduces waiting times considerably. This is because all registration data is stored on the mobile device itself.
But the use of the mobile and tablet will face several obstacles in the future. A study by Pew Charitable Trusts stated that the lack of security was a point of friction between users and mobile shopping: for 7 out of 10 American consumers, this was the reason why they preferred to make their purchases from the computer.
Pew Charitable Trusts data shows that ecommerce has a lot to do. Improving trust and encouraging the use of mobile phones for online shopping will be a major goal in the coming years.