Recently, a research report published by Allied Market Research mentioned that the mobile payment market is expected to reach $3,388 Billion by 2022. This remarkable CAGR’s growth of 33.4% from 2016 to 2022 indicates that mobile payments are rising very positively.
This growth is relatively understandable because according to Business Insider, 1.2 billion people have access to a bank account. This rough number of people also possess the capabilities to make payment across the globe using their smartphones. For this reason, financial institutions are looking to increase their customer base by going mobile.
Mobile FTW! (read: for the win)
You might came across this phrase once or twice while surfing the internet. Like the phrase itself, mobile payment is establishing itself to be a global trend and currently winning peoples’ heart. What used to be seen as an exclusive payment option is now an affordable trend that looks to be the future payment option of e-commerce.
Wondering why this is happening? Here are the answers:
- Mobile payment apps are on the rise
For an example of the rising of mobile payments, look no further than Southeast Asia. The use of mobile payment application there has grown from the realm of online shopping and hotel booking to food delivery and ride-sharing.
In the past few years, mobile payments caught the attention of mobile user as its efficiency made payments easier to conduct. This gave birth to many mobile payment apps to emerge and cater the Southeast Asian mobile user.
Mobile payments are poised to keep growing in 2018. While some countries are lagging behind in the mobile world, it will not be long until the trend reaches to them.
- Simple in-aisle payments
Nobody likes waiting in line. For retailers, removing friction from the checkout is central to enhancing the overall customer experience. Not only it will smooth out the whole process for the customers, but it also can ease up the operation by miles.
Mobile payment enables consumers as easily choose their items, proceed to checkout and pay for it. No redirection, no waiting for turns and everything is secure between the customer and business. Times are wisely-optimized, and so does convenience. On top of that, it also promotes customer’s loyalty.
Traditionally, this is what all retailers want regardless in physical commerce or e-commerce. A frictionless and seamless payment are simply achievable with mobile payments.
- Tokenization – unifying mobile payments security
Regardless of the payment method deployed, tokenization technology is an essential element to enable secure mobile transactions. Payment tokenization replaces a customer’s Primary Account Number (PAN) with a unique payment token that is limited in usage. The limitation can be specific to a device, merchant, transaction type or even channel.
This means tokenization can help to secure any mobile transaction made safely.
As mobile payment technologies emerge and evolve, the way we pay using our mobile is set to unprecedented change. The promotion of safe, secure experience leads the establishing consumer confidence and trust. It drives the new method to be adopted easily and comfortably.