Our fast-paced, on-demand life styles are fuelling the popularity of fast and convenient mobile payments like we have never seen before. As mobile technology advances, countries all around the world are embracing mobile payments at phenomenal rates.
What are mobile payments?
Instead of paying for purchases via cash or physical credit cards, mobile payment technology allows you to do so digitally. Mobile payments are regulated transactions that take place digitally through a mobile device. Mobile payments can be used at physical businesses or for peer to peer transactions. At a physical business you are using a mobile device app to pay for the goods or services, rather than the traditional cash or card method. In a peer to peer transaction you are using a mobile phone app to make payment direct to another individual.
How popular are mobile payments?
While mobile payments have been around for over 20 years the growth in the last decade has accelerated as mobile technology has developed and the popularity of mobile devices has skyrocketed. It is reported by mobile data source GSMA Intelligence that in 2017 more than 5 billion people worldwide had a mobile subscription and this is forecast to reach 5.9 billion by 2025. With mobile devices becoming the norm so too are app-users and mobile payers. In just 4 years mobile worldwide payments have grown more than $500 billion to exceed $700 billion in 2017. This figure is expected to increase to $2.8 trillion by 2020.
Why use mobile payments?
As we move into the future we all want things faster and more convenient than ever before. Our super-fast lifestyles are now the norm. We also want security. Mobile payments deliver on all fronts.
The convenience comes from using our mobile device loaded with easy to use apps to make purchases and transfer funds to others. We no longer want to carry cash around and we are increasingly reliant on our devices for everything.
Mobile Payments are fast. Usually a payment will take less than a second which is in contrast to the traditional merchant terminal that is often sluggish. The faster you can pay the quicker you are carrying on your busy life.
Multiple layers of dynamic encryption make mobile payments extremely secure. They are considered just as secure as chip card payments and in some instances more secure when coupled with additional security such as fingerprint ID.
Mobile payments beyond 2018
Industry observers believe the global stage is set for the mobile payments market to continue to grow at a rapid rate. Technology is equal to consumers demand and is being fuelled by the ever growing app market, rapidly increasing use of mobile devices and our cashless society. According to a research report published by Allied Market Research the mobile payments market is expected to reach a value of $3.3 trillion by 2022.