Happily, following its breakout year in 2015, the mobile payments industry has seen continued innovation and growth in 2016.

So, as we approach the end of the year, what are the key trends and technologies that will shape the industry into 2017?

IoT and ‘invisible payments’

Providing the consumer with a truly frictionless experience is the holy grail for the payments industry. This has already been achieved in-app with platforms such as Uber, but has yet to be translated in-store.

In the IoT era, however, we are moving ever closer to delivering a seamless in-store experience. Beacons, geolocation, computer vision and biometric technologies are being combined to deliver a frictionless experience.

Indeed, the industry will closely be monitoring the success of Amazon Go, which is currently in beta but is expected to launch publicly in early 2017. The concept deploys various technologies (the exact details are yet to be released) that enables a consumer to walk into the store, pick up an item and walk out, with the order charged to their Amazon account upon leaving.

As well as Amazon Go, we also predict myriad other pilots, demos and announcements throughout 2017 that aim to move all stages of the in-store payments process – from initialization and authentication, right through to final confirmation – firmly into the background.

OEM Pay: Evolution, not revolution

Increased consumer awareness, ever-expanding acceptance and more mature offerings means that the various OEM Pay platforms will continue to go from nascent to mainstream in 2017.

The conversation surrounding mobile payments, however, will change. With ‘tap and go’ cultures becoming increasingly engrained, consumers now expect to be able to make contactless payments. The added convenience of paying with your mobile device is no longer the main driver of adoption.

Instead, the focus is shifting from changing the payments process into a ‘buying experience.’ The key to this is the specific, intelligent deployment of value-added services such as rewards, loyalty and couponing. For example, Apple has just partnered with Blackhawk Network to integrate eGifts, loyalty and rewards programs into Apple Pay. And Google has gotten into the festive spirit with Android Pay Christmas Crackers, which delivers rewards to users.

Chinese tech giants enter the fray

China is the world’s biggest mobile payments market, with transaction volume hitting $235 billion in 2015.

The dense regulatory framework, which precludes international companies, has seen AliPay and WeChat platforms establish a dominant market position.

The nature of the Chinese mobile payments market, however, has meant that it operated in essential isolation. Times are changing. For example, AliPay has recently announced partnerships to bring its service to Europe and Australia. The rapid global expansion of both the AliPay and WeChat platforms is likely to have huge implications across the entire payments industry. Although the platforms are currently aimed only at Chinese tourists abroad, it is apparent that the long-term strategy is to develop a global offering.

Alternative payment channels

More and more retailers are developing their own payment applications to control the payments process and deliver a unique, tailored experience, and we expect this will continue throughout 2017.

In addition, initiatives such as QR code mobile payments are enabling retailers to keep the payment process ‘in-house’ and reduce network fees. QR codes may not necessarily be the future, but the trend of retailers identifying and developing alternative payment channels is here to stay.

Source:http://www.mobilepaymentstoday.com/articles/2017-introducing-mobile-payments-20/


Each year brings new possibilities in mobile device technology. Smartphones have become more than just texting machines; they are now mini-computers, personal assistants and virtual shopping carts. More and more consumers would be lost without their smartphone, relying on it to get through the day.

Given the advances and rapid rate of new technologies, smartphones have become essential to how we live our lives. Technologies including mobile wallets, on-demand apps, a new era of digital assistants, and enhanced connectivity through near field communications (NFC) and Bluetooth are transforming the way consumers interact and rely on their phones.

The following takes a closer look at the top five mobile payment trends for 2017.

Mobile payments take the stage: At one-fourth the U.S. population, millennials will lead the charge to do away with credit cards and opt for the easy and seamless experience of mobile wallets. Using NFC technology, mobile wallets will exceed consumer expectations for convenience in 2017. With all the major players in the mobile device industry having delivered their own version of the mobile wallet (e.g. Apple Pay, Android Pay, Samsung Pay), and Apple Pay alone reporting a growth of one million new users per week, this technology will continue to convert users in the coming year.

All consuming on-demand: Mobile devices will drive the on-demand economy in 2017. In the coming year, consumers will increasingly demand their purchases be delivered or fulfilled much faster than the couple of days they’ve become accustomed to through services like Amazon Prime. In many instances, consumers want their orders within just a few hours. In 2017, consumers will opt to purchase or reserve items, track the status, receive updates and facilitate pick-up all from their smartphone. These real-time capabilities available through the smartphone will bolster the on-demand economy in the New Year.

Bluetooth on the rise:Bluetooth will expand in 2017. Thanks to Apple’s movement, consumers will become more adept at using wireless everywhere they go in the coming year.  This sets the stage for using Bluetooth in conjunction with mobile payments. Having gone through the initial hurdles of the adoption process these past few years, Bluetooth is now at a mature point and ready for widespread consumer adoption in 2017.

A new kind of personal assistant:Digital assistants will spark a new kind of relationship between consumers and their smartphones in 2017. Using data from Google, the new mobile device personal assistant is capable of connecting all that information and providing consumers helpful insights based on online habits, searches and behaviors. From alerting users of special deals on the products they use, to notifying them of new products they may like and where to find them, the modern personal assistant is as convenient as it is useful. This will further intensify consumer dependency on their mobile devices in 2017 as they interact with their smartphones on a more personal level.

The sharing economy: Innovations in mobile technology will drive the sharing economy in 2017. The new sharing economy will continue to morph into our everyday lives in the coming year as consumers increasingly demand fast and easy ways to share services.  For instance, new apps are popping up every day, offering all kinds of conveniences and things we never knew we needed. The profusion of on-demand apps and other mobile technologies will continue to facilitate the sharing economy in the coming year.

Whether it’s your first time experiencing the magic of tapping to pay for groceries or leaving behind the headaches of manually splitting up a dinner bill among friends, chances are 2017 is the year that you will become a member of the mobile payment economy. And like many that have come before you and even more that will come after you, the convenience and improved experience provided by mobile payment technology will make you a believer.

Source: http://www.mobilepaymentstoday.com/articles/5-mobile-payment-trends-to-watch-in-2017/


Make content short, responsive and simple, and cut the steps involved in purchasing processes, say these experts.

1. Have you stripped away any unnecessary content?

Tips by Dean Ronnie, content marketing manager, Miromedia

“Get rid of any graphics, videos, animations or anything else that means your mobile website takes forever to load. When optimising, consider that the visitor may not be viewing your site using a strong Wi-Fi connection. They could be viewing it via a prehistoric 3G connection (or worse). Slow loading means frustration for the customer, which means they will tap away and shop somewhere else.

“You also need to make sure that your mobile landing pages are right for the user and that they navigate to the page that’s relevant. If a user is looking to purchase fireworks, for instance, the page should have clearly laid-out products that can be quickly and easily purchased without having to navigate elsewhere. Also ensure that pages are easy to move around, easy to buy from and, of course, make sure your products are at the right price.

“Don’t be precious about anything. If it’s unnecessary for mobile, get rid. Most of the time, people are using their mobiles to make a decision, not research.”

2. Have you made the purchasing process ludicrously easy?

“Mobile browsing is all about convenience. People want to do things quickly. They don’t want to be going through multiple stages before they can buy something. So make the purchasing process as simple as possible by using the available technology – and that includes in-store. Make paying as simple as entering a password or scanning your fingerprint.

“Simplify the checkout process as much as you can. Ask your customers to enter only the necessary information. Ideally, your checkout process should be three steps or fewer.

“Think about integrated marketing as well. If using an app, include a ‘buy’ button that seamlessly allows the person to purchase without an interrupted experience.

“If you want to look to the (near) future, the next big thing looks to be shopping via Instagram. With its new ‘shop now’ feature, retailers will be able to tag products in images. By tapping these, users will immediately be taken to the relevant webpage to buy. It’s welcome news for businesses that sell niche products.”

3. Consider the context of the user experience

Tip by Inigo Antolin, head of marketing, Appleyard London

“Make your mobile site as fast as you can. Half of users expect mobile websites to load in less than two seconds, or they will leave, according to data from Kissmetrics. Bear in mind that mobile usage is already bigger than desktop, but it tends to be more on the go. It can happen on a short tube ride, or in a supermarket queue. Whatever the situation, mobile experiences tend to be really short.

“SMEs have just a few seconds or minutes before the user jumps into the next thing, because, for example, the train has already arrived at its destination.”

4. Does your website fit the device screen size?

“Having a responsive site is a must. I would recommend that businesses start by asking themselves: what time of the day and which days of the week do mobile users visit our site? Which devices do they use? Do they spend less or more than desktop? How do they pay for purchases?

Google Analytics is a free tool that can help you work out the answers to these questions. The next step is to run different tests for a limited time and learn from them. This needs to be an ongoing process, because mobile usage also depends on different factors, such as the weather. Sunshine, for example, means that users tend to spend more time outdoors and using more their mobiles.

“As a flower retailer, Monday is a really important day, on mobile and desktop. But this depends a lot on the industry, or even the specific page of the site. For example, the pages that we have promoting Sunday delivery don’t get any traffic until Wednesday, peaking on Saturday morning.”

5. Are you trying to run before you can walk?

Tip by Daniel Döderlein, chief executive, AUKA

“SMEs must figure out how using mobile can enhance the customer’s existing experience. For retailers, the end goal is to make their life as easy and pain-free as possible, to keep them coming back.

“That includes making it easy for shoppers to put items in their shopping basket, right through to the payments process (even providing automatic e-receipts). All of these things make the difference on mobile.

“Other examples of how we used m-commerce include scannable purchase codes in shop windows and magazines, with special offers to entice people in store. Remember, m-commerce also facilitates push-notifications based on geo-locations, enabling you to target and market like never before.

“The data you collect via mobile also gives you, as the retailer, a deeper level of customer insight, which is the key to unlocking a whole new level of marketing power for your business.”

Source: http://www.telegraph.co.uk/connect/small-business/tech/questions-smes-should-ask-about-m-commerce/


Money20/20 is over for another year. And as sore feet (and heads) recover and the dust starts to settle, attention is turning to the big trends and key themes.

The show has always been focused on the future and this year’s installment was no different.

In particular, there was much to make retailers sit up and take notice, for it is readily apparent that payments are in the midst of unprecedented transformation.

So, what forces are driving the change and what does the future of retail look like?

In-store on the way out?

Brick-and-mortar stores are under threat from all angles.

From a payments perspective, the in-store checkout experience is increasingly incompatible with modern lifestyles and expectations.

For example, 86 percent of consumers avoid stores with long queues, and frustration with waiting in line costs retailers billions in revenues each year. Too many retailers invest huge sums into the look and feel of stores, but neglect the pragmatic elements that can streamline the consumer experience.

In addition, many have been slow to adapt to consumer behavior and demand. Here’s an example. We are living in a digital era, yet half of U.K. small businesses only accept cash, even though the U.K. has one of the most advanced contactless infrastructures in the world, over 50 percent of UK adults carry less than £5 in cash and 54 percent of Europeans paid using a mobile device in 2016. It is this inherent conservatism and disconnect that is driving consumers away from the high street.

In-apptitude

It is not only the in-store payments experience, however, that poses challenges to retailers.

Despite the fact that consumers use their mobile devices more than their PCs, desktops account for 85% of online spending. In addition, 23 percent of users abandon mobile applications after only one use, and a staggering 86 percent have abandoned a mobile basket due to the frustration of a lengthy checkout experience. Even more concerning is that only 4 percent of small retailers even offer a mobile application that accepts payments.

It is clear, therefore, that retailers must rethink their approach to fully seize the m-commerce opportunity.

Despite the differences between in-store and in-app payments, the steps to improve them are the same. One is to remove as much friction as possible from the payments process to eliminate consumer frustration and prevent abandonment. Another is to enhance the ‘buying experience’ to make payments more than just, well, paying.

The road to invisible payments

The ‘contactless payments revolution’ has undoubtedly gone a long way to reducing friction across the payments ecosystem and shortening queues at the checkout. An advancing contactless infrastructure, an increase in near field communication (NFC)-enabled mobile devices and the launch of big name platforms has triggered explosive growth across the mobile payments industry.

And this is only the start. The wider integration of payments functionality into wearable technology is set to further streamline the checkout process, as the consumer does not have to rummage through their pocket in search of their device. This, coupled with innovations such as beacon technology (which underpins platforms such as Google’s Hands Free app), means that paying will soon require only the most limited consumer interaction.

In parallel, the introduction of ‘Buy with’ functionality within mobile applications by the OEM Pay platforms has simplified in-app purchases. Money 20/20 also saw some key announcements that will further streamline the in-app experience. EMVCo announced that its EMV 3DS 2.0 specification implements intelligent risk-based decisioning to encourage frictionless consumer authentication. The FIDO Alliance also confirmed it is working with EMVCo to enable consumers to conveniently use on-device authenticators, such as a fingerprint or “selfie” biometrics, to securely verify their presence when making an in-app payment.

With the infrastructure in place, retailers must be proactive and embrace these technologies to streamline the consumer experience and reduce checkout abandonment both in-store and in-app.

Making payments pay off

Simplicity of use, however, is only half the battle. Enhancing the buying experience is not new age marketing jargon (seriously), but rather a concrete means of integrating value-added services into the payments process to drive adoption.

The OEM Pay platforms and banks are leading the charge in delivering an added-value ‘buying experience’. For example, Android Pay automatically deploys loyalty points and applies offers, and initiatives such as ‘Android Pay Day’ offer monthly incentives. From the bank world, Royal Bank of Canada has integrated over 150 loyalty programs into its HCE wallet.

The future of retail payments

So, how are retail payments changing? A key takeaway from Money20/20 is that we can expect the concepts of in-store and in-app payments to become increasingly blurred.

For example, in-aisle payments enable retailers to combine the in-store experience with in-app convenience. Rather than queuing at the checkout, the consumer can simply scan the physical product within their mobile application, perform an in-app purchase and display their digital receipt upon leaving the store.

Predictive analytics and machine-learning are another avenue by which retailers can improve the consumer experience, with mobile applications leveraging past behavior to deliver smart recommendations.

In addition, augmented reality enables consumers to analyse product information and read reviews in-store and in real time, rather than having to research at home before heading out to the store.

The end of payments as we know it…and we feel fine

Whatever avenue mobile payments takes us down, it is clear that payments are undergoing an unprecedented period of transformation. Retailers, much like banks, are often accused of being conservative and resistant to change. But they now face a clear choice. Adapt or fall behind.

Money20/20 showcased a future in which payments are no longer a chore, but rather a rewarding experience. By moving quickly, embracing change and futureproofing their offering both in-app and in-store, retailers can find their place in this brave new world.

Source: http://www.mobilepaymentstoday.com/blogs/the-end-of-payments-as-we-know-it/


 

There’s a smartphone epidemic. So many people have them, and they are so engrossing, that smartphone users literally bump into each other when crossing the street or passing each other on a set of stairs. They’re communicating, they’re gaming, they’re researching and locating, they’re checking the weather, they’re shopping, they’re daydreaming, they’re doing everything with their enthralling phones… except paying. Or making eye contact.

What is the holdup in adopting mobile wallets? To be fair, a respectable 35 million consumers—22-plus percent of all smartphone owners—have gone so far as to provision a credit or debit card into a general purpose mobile wallet for use—maybe not for regular use, but at least they’ve tried it.

There’s been a ream of articles written about what it would take to get mobile wallets into wide adoption—and each article eloquently offers one piece of the puzzle. We’d like to posit that what it’s going to take to get the mobile wallet to replace the tattered leather one in your back pocket is… when everything that’s in your wallet is in your phone, and more. And everyone accepts that as reality.

Let’s make a checklist of what’s in your physical wallet now, and whether they are, or could easily be, in your phone. Credit cards? Check. Debit card? Check. Little scraps of paper with people’s names and phone numbers on them? Check. Frequent flyer, grocery, and other loyalty cards? Not yet. Gift cards that you never remember until after you’ve left the store? And how about your driver’s license? With this checklist, a picture of the real wallet, beyond just making payments, is beginning to form.

The mobile wallet needs to have a 360-degree view on the range of identifiers you keep in your physical wallet. You shouldn’t have to fumble for your credit cards, loyalty cards, or prepaid gift cards. You shouldn’t have to carry around your physical driver’s license or social security card. In a sense, it’s actually safer to have them stored electronically in a device you carry all the time anyway. A device that has already become a highly personal, unique object to you. Each smartphone owner has his or her own settings, apps, ringtones, wallpaper and background images. The phone is a personal statement about—an extension of—who they are.

So what is keeping people from using their smartphones as an all-the-time, functional mobile wallet? As we stated earlier, multiple factors are involved. Very often, their issuing bank has not integrated with one of the wallet providers, so they can’t provision a card into it. Another widespread reality is that the wallet is not accepted in many places. Without global acceptance across all merchants and services, it can never become as habitual as paying with physical money (either with credit cards or cash). Then there’s the limitation of only being able to have credit and debit cards in your phone, instead of having gift, loyalty, or other prepaid cards available, in digital format, for use anytime. Until you can get your license and Social Security card in there, it won’t be a true wallet.

Remember when you bought a word processor, a sort of proto-computer that was programmable but not connected to the internet? You may be too young to remember that, but in the not-too-distant past you had to have a different device to do your word processing, your spreadsheets, your faxing. (What is faxing? some young people will ask.) You kept your contacts in an ancient device called a Rolodex. Then along came Microsoft, and suddenly, it all came together in one place—a digital calendar, spreadsheets, word processing, email management (the modern equivalent of faxes)—the works. Now we have Windows10, the re-fulfillment of that intention, with its objective of making everything mobile, transportable, and interconnected—an integrated experience. It brings together news, music, photos, geographic status, email, texts… all in one cloud-based place.

Well, in just the same way, it all needs to come together in the mobile phone in order for mobile payments to be widely adopted by consumers and merchants. That level of nearly unconscious acceptance that we see with computers—is there anyone who doesn’t, at minimum, know the workings of a computer, or more likely owns several of them in some form?—needs to happen. Will economic history mark it as a bigger leap from cash to credit cards, or from cards to the mobile wallet?

Once the universality of structure is achieved, trust and acceptance will inevitably follow. And actually, it’s bound to happen: we will see a similar integrated capability where multiple payment and identifying forms—all the information that defines our commercial lives—reside in one place. The phone.

Source: http://www.mobilepaymentstoday.com/articles/what-do-consumers-know-about-their-phones-not-enough-to-leave-their-wallets-at-home/


Mobile commerce is now a global phenomenon, says a new report from the Interactive Advertising Bureau, with 80 percent of customers from around the world saying they are satisfied with their smartphone shopping options.

The numbers come from IAB’s newest report, Mobile Commerce: A Global Perspective, which looks at mobile commerce trends from around the world. While 80 percent is an impressive number, that last 20 percent still needs to be reached.

“Mobile is already a default companion device in our daily life,” said Anna Bager, senior vice president and general manager of mobile and video at the Interactive Advertising Bureau. “For many of us, it’s the first device we wake up to in the morning and the one sitting next to our pillow when we go to bed.

“In IAB’s global mobile commerce study, consumers have indicated they regularly use their mobile device to check prices, look for product and service reviews and additional information while in a retail store,” she said. “This is especially prevalent in North America.

“To make mobile devices work harder as a shopping companion in-store, retailers should promote their loyalty and reward programs via mobile apps, offer targeted product recommendations and reminders informed by past purchase history and user preferences. Retailers should also consider developing strategies for the adoption of in-store beaconing to enable delivery of mobile-enhanced offers and a more relevant shopping experience.”

Mobile satisfaction
The researchers who authored the report spoke to consumers from 19 countries around the world, asking a list of identical questions to each participant. Across every demographic, mobile use remained high.

An average of 75 percent of consumers have used their mobile device to purchase something within the last six months. Nearly 25 percent of all surveyed consumers said that those mobile purchases are made weekly.

The report notes that while 54 percent are mature mobile shoppers – they have been making mobile purchases for more than a year – 43 percent have only just adopted mobile commerce, meaning that the market continues to grow.

Nearly one third of all purchases made by the surveyed consumers come from mobile, whether that means they were purchased through a mobile shopping site or mobile payments were used in-store.

While shopping habits vary by location, what seems to be globally true is that consumers find mobile commerce more convenient than other forms of commerce and that the larger share of consumers are satisfied with their mobile shopping options.

The report found that 80 percent of global consumers are satisfied with their purchase experience, with more developed parts of the world such as the U.S. seeing that number go even higher.

The biggest factors driving that satisfaction are convenience and speed. Forty-nine percent of consumers said purchasing through mobile was easier and 46 percent said it saved time for their busy schedules.

“Brands should continue their investment in advertising on mobile to connect consumers with relevant and personalized messaging that can help trigger product interest and purchase intent,” Ms. Bager said. “Mobile-specific and/or mobile-only shopping events and promotions can further elevate mobile as an integral purchase platform.”

Security concerns
There are still areas in which mobile needs to earn the trust of consumers before they will adopt. The main barrier to adopting mobile commerce was trust and security, the report found.

Consumers still have reservations about entering their credit card information into mobile sites or onto their mobile wallets in a way the regular ecommerce that they do not feel about regular ecommerce.

If retailers want to court the last 20 percent of consumers who were not satisfied with their mobile shopping experience, they will have to make sure they can promise them a safe and secure transaction process.

Consumers are also concerned with their privacy. They want their information to be kept safe not just from hackers and criminals but from having that information be sold unscrupulously to the highest bidder.

In addition to keeping their financial information secure, it is important for brands to be open and honest about what their consumers’ information will be used for, if their trust is to be earned.

“As we have seen in recent news reports of data security breaches, online data security, especially when related to financial transactions and purchase history, is a top concern for consumers,” Ms. Bager said. “To ensure a trusted relationship with mobile consumers, brands must make every effort to minimize privacy concerns, for example by reinforcing and safeguarding mobile purchase data and personal information.

“Developing a seamless shopping experience on mobile is also crucial,” she said. “By providing easy to discover, compare and review products, as well as making sure mobile web pages and apps load quickly and that transactions are glitch-free and seamless can go a long way to enhance relationships with mobile consumers.

“Highlighting the importance of a quality mobile user experience, Google, for instance has found that brands like Walmart have experienced improvements of up to two percent in conversion rates by reducing their mobile web site page load time by four seconds.”

Source: http://www.mobilecommercedaily.com/80pc-of-consumers-experience-mobile-shopping-satisfaction-despite-security-concerns-report


Mobile Payment Systems are systems that benefit both consumers and businesses by letting consumers pay by mobile devices.

Mobile Payment Systems’ Advantages For Consumers:

  • Convenience: It makes the payment process easier and less complicated. Now customers can make payment anywhere at anytime with their mobile devices connected with InternetThey allow customers to seamlessly purchase products or services with having to physically hand over cash or swipe a card. Consumers are eager for quick, in-and-out shopping experiences.
  • Security: By using mobile payments, consumers no longer have to assume the security risks associated with cash or worry whether they have enough cash in their bulky physical wallets so that mobile payments reduce theft risks of having cash on hand. Moreover, mobile payment is a secure way to pay. Credit card information are not stored on smartphones directly but in the cloud. So no thief could extract your credit card details just by stealing your phone.

Mobile Payment Systems’ Advantages for retailers:

  • Cost: One valid advantage are the lower costs of using a mobile card reader or barcode scanner than having a credit card terminal from a bank, which charges merchants with a monthly fee plus transaction fees. Mobile app owners need to pay setup costs for a terminal.
  • Engagement: Offering mobile payment options to customers, both online and offline simply makes the purchase process easier for them. This can increase conversion rates and the number of returning customers. Moreover, businesses are able to speed up the checkout process and capture the business of impulse buyers who may have been less able to buy something if a traditional transaction were required.

Nowadays, more and more online shops are offering their customers to pay their order online with their mobile device using Google Wallet. It’s a win-win situation: customers can easily skip filling out annoying forms and purchase an item with only one click.

This will most likely increase conversion rates and revenue. Catching this trend of mobile era is nothing but one of the most ideal and potential choice for retailers.

Source: https://www.simicart.com/mobile-commerce/mobile-payment-systems.html/


Nearly two fifths of Western European consumers (38%) are ready to pay using their smartphones while more than 70% of those in Africa and the Middle East are prepared to do so, research by Mastercard reveals. Consumers across all regions chose their smartphones as an alternative to the plastic card.

The Mastercard Impact of Innovation study — a survey of 23,000 consumers in 23 different countries across Europe, Africa and the Middle East — also reveals that customers would rather use biometrics than PIN codes to secure payment, with fingerprint recognition technology proving the most popular method.

Out of those surveyed in Western Europe, Swedish consumers are the most eager for mobile payments, with 70% indicating their readiness to pay with their phone. 38% of Western Europeans trust fingerprint recognition more than they do PIN (30%).

Mobile payment readiness is 57% in Central and Eastern Europe, and fingerprint authentication (34%) is trusted more than PIN (33%). Preparedness is an average 64% across Russia, Ukraine and Turkey, where respondents have confidence in fingerprint the least (32%) and SMS code the most (36%).

Consumers in the Middle East and Africa do not generally trust PIN codes for payment (24%), the study also reveals. 32% are assured by fingerprint and 36% by SMS code.

Positive outlook

When it comes to digital innovations as a whole, 92% of those surveyed across all regions believe they are a good thing and have a positive outlook on the future of technology. Those living in technologically less developed countries tend to be more enthusiastic about digital innovation than in markets where it is readily available.

Western Europe has the largest proportion of those resistant to digital change (17%), while Central and Eastern European countries and those in the Middle East and Africa have the highest number who actively embrace the latest technology. 27% of Russians, Turkish and Ukrainian consumers call themselves “eager promoters” of new tech.

“Not only is there a huge appetite for new ways to pay, but consumers overwhelmingly want to use their smartphones,” says Ann Cairns, president of international markets at Mastercard. “In fact, many are ready to do so right now. For decades, plastic cards have been the only reasonable alternative to cash, but consumers are saying loud and clear that they want digital innovations in all areas of life.”

Source: http://www.nfcworld.com/2016/09/27/347498/study-shows-growing-appetite-mobile-payments-biometrics/


SMS Payments

SMS Payments are currently one of the most popular methods of using mobile phones to pay for goods or services, or even for person-to-person payments and many experts believe that due to the simple nature of SMS payments, the fact that all the user needs is a phone with SMS capability, SMS payments will continue to be a growth area in mobile payments.

But in addition to these text payments there are two other methods of using mobile phones to pay for items and services.  These are NFC payments and WAP payments.

NFC Payments

Near Field Communication (NFC) payments are a growth area in the field of mobile payments.  NFC phones communicate with each other and with NFC enabled points of sale, using radio frequency identification.  The mobile phones don’t have to touch the point of sale or each other to transfer information, i.e. money, but they have to be fairly close within four inches/ten centimetres of each other.

In China NFC is accepted as a means of payment on all public transport and in Japan NFC is also being used to provide identity card information.  In Nice visitors and residents can use NFC to purchase almost anything.

NFC involves a direct, almost instantaneous transfer of data between phones or phones and Point of Sale devices and many mobile phone operators are looking at ways to further develop this technology.

WAP Payments

WAP Payments simply means using the Wireless Application Protocol (WAP) facility on your Smart phone to connect to the internet and then using an online payment method such as PayPal, Google Wallet or Yahoo Wallet or simply entering your credit card details into the payment box on a company’s website.

Some mobile network operators allow users to pay for WAP Payments directly from their mobile phone bill as with standard SMS payments.  Companies wishing to accept WAP payments need to talk to a SMS payment solutions company to ensure they get a WAP payment gateway installed on their site.

Source: http://www.mobiletransaction.org/different-types-of-mobile-payments/


Mobile wallets are slowly gaining adoption, but retailers’ offerings are currently the winners because they can be easily integrated with loyalty programs, providing an incentive to use them.

Many experts believe that mobile wallets will  continue to grow, and by the end of the decade, be universally adopted. Retailers such as Dunkin’ Donuts and Starbucks are leading the charge in terms of brand-led mobile wallets and are seeing significant adoption rates while platform-led services such as Apple Pay and Android Pay mobile wallets are lacking in comparison, but will likely see more users in the coming years.

“For merchant wallets, the vested interest in making them work and the ancillary benefits around marketing data garnered from wider use creates a broader demand in an organization to put incentives to put them in place and the mobile wallet investments successful,” said Joseph Walent, senior analyst of emerging technology advisory service at Mercator Advisory Group. “In my opinion, the main reason for the drag in universal wallet space remains lack of acceptance, be it real or perceived, coupled with a lack of marketing effort beyond the initial set-up the phone.

“While merchant specific wallets will likely top out in the next couple years, the usage of universal wallets will expand dramatically by the end of the decade,” he said.

Loyalty and mobile
Retailers can leverage mobile wallets to shape consumer behavior by prompting them to come in stores and purchase with rewards and the process of earning rewards. Mobile wallets and loyalty offer incentives for using the program, therefore consumers are more likely to leverage retailers’ mobile wallet programs as they have more to offer.

The mobile wallet applications are highly beneficial to retailers beyond just rewards programs. Retailers now have the ability to garner a wide range of data to better serve consumers and have the capability to send push notifications and keep them fully connected.

“Mobile wallets are a highly effective customer engagement tool,” said Danielle Brown, vice president of marketing at Points. “Through mobile wallets, marketers can reach consumers at the point of sale, through a channel that is most convenient and relevant to them.

“Not to mention, the convenience of being ‘mobile’ enables marketers to target consumers with greater precision and deliver hyper-relevant offers through geo-location targeting,” she said. “Additionally, when loyalty rewards are integrated with mobile wallets, they can be used to drive specific consumer behaviors.

“For example, marketers can incentivize mobile wallet use by incorporating existing loyalty programs and making targeted offers.” 

Millennials and mobile
Mobile wallets will likely see an uptick in consumer usage once all retailers have accepted NFC terminals and more NFC-enabled phones arrive on the scene. Apple is seeing growth with Apple Pay numbers, but mainly outside of the U.S.

Once consumers in the U.S. have gotten used to mobile payments and mobile wallets, there will be a drastic change with bricks-and-mortar retail. For now, the growth is steady and will likely see significant usage by 2020. 

Another significant factor for mobile wallet adoption is millennials and their spending. Millennials are not spending and valuing deals and savings rather than purchasing, but they are the demographic most likely to take on mobile wallets as they are more comfortable with technology.

As millennials grow older in age and become more comfortable with spending, mobile wallets will likely see greater adoption.

“Mobile wallets are growing steadily, Apple just reported some fairly strong results, particularly in non-U.S. markets,” said Thad Peterson, senior analyst at Aite Group. “Growth will continue as the next generation of NFC-enabled phones come online and as NFC-capable terminals are installed. It’s not going to be a ‘hockey stick’ growth rate, look for steady growth until around 2019-2020, then usage will ramp up. 

“We need three things to enable mobile wallets,” he said. “Critical mass of NFC-capable terminals at POS, critical mass of NFC-capable smartphones and millennials to move into a spending phase of their lives.

“Once those pieces are in place, mobile payment growth will accelerate.” 

 

Source: http://www.mobilecommercedaily.com/mobile-wallets-to-see-universal-adoption-by-end-of-decade