Imagine yourself in 2015! You are standing at the checkout line in a shopping mall, ready to make your first Christmas holiday purchase. Before the cashier asks you to pay by Cash or Credit Card, you take out your mobile, and direct your mobile towards the NFC reader. Congratulations, you just made your first holiday purchase. Welcome to the future.
Did you know that there is no other technology bigger than cellular technology, considering 87% of the world population owns it. And this is only the beginning. With the latest talk of the world being mobile payments, the mind boggles at the Endless Possibilities and Impact Electronic Wallets create on our lifestyle. In U.S, 1 out of 3 (30%) smartphone users make mobile payments, where as 17% say they would spend more because of the new payment options. In U.K, mobile payments are already being made at leading retailers and even on motorway tolls whereas, in Asia and Middle-east, we can see the trend rising with new services quickly rapidly increasing by the day.
Image Source: BBC
So what is it that you are still missing? Let’s take a look at the picture below of a woman selling newspaper, on the road: Accepting Mobile Payments.
Image source: BBC
Mobile Payments and What You Need To Know
1: World Would Move Towards Full Financial Mobility
Our banking and financial institutions are moving towards mobile payment technology as the preferred choice for financial transactions. This means, we shall see an immense rising trend in goods and services being purchased via mobile payments by 2015.
2: Transparent Payments Model
Merchants realize that in order to stay competitive, they must enhance the overall customer experience. Hence we will see a significant rise in invisible payments via mobile payments where merchants will interact with their consumers through more rewarding consumer-brand loyalty schemes, deals and other ancillary services.
3: Location Based Marketing
Would it not be nice to know the best deals, best food, and discounts, compare prices or simply buy cheaper grocery when you are within a shopping area? Well, this reality will hit big by 2015. In a poll conducted by Mobile Payments Today, examining the customer shopping trends, 25% customers agree that they would like to know more as they enter a shopping mall.
4: Ease of Use, and Lower Cost will Drive NFC Adoption
By the end of 2019, the number of consumers using NFC contactless payment services will be approx. 516 million (a more than five-fold increase from 101 million today). Further, it is predicted that by 2020, 90 % of world population over 6 years of age will be a smartphone user. And guess what, with such a massive increase, there would be more NFC based transactions.
5: The Rise of Couch Commerce
Sitting comfortably in your couch, scrolling through your smart phone or tablet, you are able to make purchase online. The only difference in 2015 would be that you have the option to either bill it to your financial banking account, or bill it to your monthly mobile bill.
Image Source: BBC
6: The End of Credit Cards
Mobile technology is a complex technology that runs through several encryption and decryption processes – thus ensuring a safer means of transaction. In light to the credit card breaches, NFC based smart phones offer a more secure environment for your financial transactions. It is to this, CNN predicts that the end of credit card is near.
Remember, the economic cost of purchasing through mobile wallet is lower than the credit card.
7: Expected Transactions by 2015
Pay-by-phone market is forecast to make up $22 billion in transactions by 2015, up from “practically none” last year, according to research firm Aite Group, CNN.
8: Transition into Cloud Based Payments
With the increased evolution of mobile payments and the simple mechanism it adopts, more businesses will transition if not already integrated into cloud based environment. According to Pascal Nicolas, CEO of POS systems, the revolution enables owners to customize and personalize services for their customers.