6 ways mobile payments will create big opportunities for retailers
Everything we do is moving online – from shopping for groceries, ordering gifts to writing letters. As technology develops and takes over more aspects of our lives than before, the world of payments is changing along with our buying habits. Cash is no longer king, and card has moved into the top spot. Yet as the impetus of shopping ‘on-the-go’ moves forward, mobile payments is ready to take its place for the top spot.
Here are 3 key stats and 3 key trends that demonstrate the rapid growth of mobile payments and the massive opportunity that it brings.
Statistic #1: Mobile payments are expected to reach $50 billion by 2021
If this isn’t a heft enough sum of money to convince you, the growth this demonstrates will be: mobile payments were worth just $6.6 billion in 2016, so this is a predicted growth of seven and a half times that! As mobile payments get quicker and easier, more of us will use them and more often. [Reuters]
Statistic #2: Usage of mobile payments has grown in Europe from just 18% of payments in 2015 to 54% in 2016
Mobile payments in Europe have seen a jump of over 200% in the space of a year – a growth rate that any industry would be pleased with. Given that Europe isn’t historically seen as an early adopter of tech developments, this displays a real turning of the tide in attitudes. [Mobile payments world]
Statistic #3: 72% of mobile payments are made by millennials
Generation Y are at the forefront of mobile payment adoption, yet this usage will only increase. The definition of ‘millennial’ ends with a birth date in the early 00s; meaning that plenty aren’t yet 18 or at an age or circumstance to have disposable income to spend. Once they hit maturity and are in a more stable financial situation, this usage of mobile payments can only go up. [Pewtrust]
Trend #1: Apps on the up
Payments made through the Starbucks app now equate to 16% of their total sales, which is impressive when you know they made $19.6 billion in revenue in 2015. If even the biggest of cash-reliant retailers is willing to ditch its most traditional form of payment, why can’t you? [Fast company]
Trend #2: Consumer alerts
We all love the buzz of a mobile and often check it immediately to reveal what notification lays in store for us. Consumers interviewed on payment methods identified the value-added services of mobile payments as a real benefit, citing electronic receipts, rewards and spending alerts as a bonus. [Pewtrust]
Trend #3: Well-being considerations = less stress
Actually going to a shop, finding what you need, finding the right price and then purchasing can be a stressful experience for some. Wal Mart are the latest retailer to trial a commerce app that beats the checkout queues: you scan each item as you go, pay on your mobile, and show your electronic receipt to a staff member before you leave. It’s not only less stressful but less time-consuming, and you know the saying… time is money! [AdroidAuthority]
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