In the most recent study released by Juniper Research, it was revealed that payments made via mobile devices could potentially reach nearly $507 billion by the end of this year, which is nearly a 40 percent increase year-on-year adoption rate.
The growth in mobile payments means that organizations will need to invest in developing their digital customer experience to serve their mobile customers.
The growth is likely to continue due to the rise in goods purchased via mobile devices. In fact, the average transaction via tablets has exceeded the rate of PC-based shoppers.
What the Growth in Mobile Payments Means for Customer Experience
In terms of customer experience, the rise in adoption and usage of mobile payments mean that the public is now maximized technologies that offer them quick and efficient transactions. Thus, businesses need to offer forms of digital services in order to cater for the demand of the consumer’s need for convenient, innovative, and fast transaction platforms. By being able to adopt mPayment schemes, customer engagement strengthens which guarantees a higher return of investment (ROI) for businesses.
There are various customers that you can target by applying e-payment options for your business. This includes the following:
- Customers who looks for convenience
- Customers who shop and browse online
- Customers who do not carry cash all the time
- Customers who are in search of secured payment
- Customers who supports the latest innovative solutions
Perhaps, the most difficult market to target are the consumers who are more used to the traditional payment methods. This mainly due to trust as they have been using such trusted methods for long periods. It’ll also be evident in the smartphones that they own – with many owning older gadgets as opposed to the newer models that incorporate the high-tech chipsets for mPayment.
Popular Forms of Customer Mobile Payments
The most common form of e-payment relies heavily on smartphone to terminal transactions. However, there are various kinds of epayment that businesses can maximize to strengthen customer engagement. The most common involves SMS payments, which is one of the most popular, the NFC (near field communication) payments, and the WAP (wireless application protocol) transaction that uses an app and online payment systems.
In our previous infographic, we outlined the history of mobile payments with a full breakdown of how mobile payments began and where the future of e-commerce is likely to go.
Latest Trends in Mobile
The latest trends involve smartphones that are pre-built with their manufacturer’s propriety mobile payment system, such as the Galaxy S6 and the Samsung Pay. Based on O2’s specification page, the handset features a built-in NFC chip that works with various stores with NFC terminals.
NFC-based mobile payment works with major payment networks, including MasterCard and Visa, and financial partners such as American Express, Citibank, Bank of America and others too. Similarly, Apple also released their own Apple Pay that can also be accessed via their wearable device, the Apple Watch.
Mobile payments systems are becoming extremely useful tools for many leading businesses today.