Payments are evolving more rapidly today than ever before. Real-time payments, growth in e-commerce, and a transition towards cloud banking are driving the market in new and exciting directions.
The focus on EMV in the payments industry over the past few years has allowed new disruptive technologies to grow. When the payment industry product innovation stalled in an effort upgrade systems to accept chip card support standards, mobile and P2P technologies emerged to fill the gap.
Mobile payment technology is relatively new, but it is evolving faster than any of the other payment mechanisms. As another disruptive technology, mobile has been projected to upend traditional payments such as banking, lending, and POS. A Javelin report released in 2016 projected that nearly half the funds from online purchases will be made using a mobile device by 2020—based on the increased reliance on mobile devices.
The growth in mobile payment technology can be directly attributed to an ever-changing, faster moving society. Accessibility, connectivity, and consumer experience have become requirements for our continually on-the-go population. The consumer experience has become key in payments as mobile wallets are refined and allow for speedier checkout and alternative checkout options.
With this growth comes opportunity and innovation. EMV capabilities are quickly becoming accessible via mobile SDK’s and semi-integrated offerings, allowing new competitors to extend their product offerings beyond their core solution. Mobile payment options are increasingly accepted by merchants, and younger generations are more inclined to think of a mobile wallet. Purchasing items through an app or mobile wallet provides a more seamless consumer experience, as consumers set up the app or wallet just one time and do not need to re-enter required information for each transaction.
Changes in the global market are also indicating an increase in mobile payment use. As cash begins to become less relevant in major economies, mobile is becoming a ready replacement. In addition to the increased consumer satisfaction, governments are supporting this move to reduce the costs of supporting banknotes and coins.
As consumers increase the number of financial transactions on their phones, payment professionals have more and more to gain by investing in a robust, all-encompassing mobile strategy to stay competitive in the payment space. Mobile payments are used to acquire data and how the data is handled can have a very powerful effect on a business. Building a growth strategy that incorporates mobile can be critical to a company’s future success in the payment industry.
~ Benjamin Hurley, Senior Director, Mobile Product Management & Business Development