A study by SalesForce, a provider of CRM software services, confirmed that more than 60% of global E-commerce traffic comes from mobile consumers. This data clearly points to the powerful influence of mobile devices on online purchases and sales. 2019 will be one of the key years for the growth of the mobile payment market.
But what is the reason behind the growth in mobile payments? Increased security, improved customer experience, and the boom in payment gateways and e-wallet services such as VENMO, Square Cash and Amazon pay are some of the drivers. Before delving into the factors behind this, let’s take a look at some of the expected Numbers for mobile payments in 2019 and 2020.
Global mobile payment market will reach $1.08 trillion in transactions in 2019
Mobile payment market in recent years has grown all the way, invincible. Global mobile payment market trading has risen from $450 billion in 2015 to $930 billion in 2018, compared with $1.08 trillion trillion in 2019, according to figures Statista (data analytics) above.
Mobile payment has become the mainstream payment method, and various applications, devices and household appliances have joined the trend. A good example is amazon’s voice assistant Alexa, which enables consumers to buy products from the platform using voice.
In addition to being popular in Europe and the United States, the report said, mobile payment methods are also popular in China. Large companies such as Tencent and Alibaba are targeting the mobile payment market, and WeChat payments and Alipay are good examples.
2019 years later, the growth outlook for the mobile payment market remains very positive. According to a survey by BI Intelligence, in-store mobile payments will reach $503 billion by 2020. By another conservative estimate, all signs seem to point to 2021 and 2022 as the years when the market will continue to grow or strengthen.
Four factors in the booming growth of the mobile payment market
It is not difficult to see from the data mentioned above that the number of PC-side users is slipping. There are several main factors that can flourish in the mobile payment market:
1.Mobile user experience is becoming more and more perfect
With the development of smartphones and tablets, most e-commerce sites have adopted a responsive design that adapts well to the needs of mobile users. As the navigation function on these devices becomes more convenient and perfect, more and more users choose the mobile payment method in shopping.
2.Electronic wallets and other payment apps have been rolled out
The popularity of mobile phones has been accompanied by the introduction of a series of payment applications, and various mobile payment trends seem to herald a gradual replacement of cash payments, with the obvious that mobile payments are rapidly capturing large share of the market. Venmo, Cash App, Google Pay, Alipay, Amazon Pay or Apple Pay are all terminals that promote mobile shopping.
3.Mobile payment security improved
Consumer trust in mobile payments is growing, thanks largely to increased security in the payment market. E-wallets are effectively encrypted with customer data as they are used, and when mobile users enter their bank accounts and passwords, these platforms use payment tags to replace the data, which cybercriminals can hardly steal.
Apple Pay, Android Pay, Amazon Pay or Samsung Pay are slowly replacing traditional credit and debit CARDS. The latter still dominates at the moment, but its advantages are waning.
In addition, cyber security experts also advise people to use electronic wallets instead of credit CARDS, which they believe is more secure. That’s because e-wallets use payment tagging technology to effectively encrypt customer data. When mobile users enter their bank accounts and passwords, these platforms use payment tags to replace the data, which cybercriminals can hardly steal.
4.Cater to mobile consumers
As SalesForce points out, most e-commerce traffic comes from mobile devices. Ten years ago, consumers had to choose between a computer or laptop. Now Alipay, Amazon Pay and other payment platforms are giving these consumers a fresh air. Such payments are a boon for mobile users. In addition, since all the registration data is stored on the mobile device itself, the waiting time is also greatly reduced through the smart phone payment.
But mobile and tablet use will also face several hurdles in the future. According to a study by the Pew Charitable Trusts, the lack of security is a friction point between users and mobile shopping: for 70% of American consumers, this is why they prefer shopping on PC.
The Pew Charitable Trusts data also show that mobile e-commerce is still a long way from growing. Enhancing trust and encouraging the choice of mobile shopping will be a major goal of the market’s development in the coming years.
The development of the Internet has become one of the most important infrastructure of mankind, and the future of money digitization seems to be close at hand. But the development and innovation of any science and technology is a double-edged sword, mobile payment in the process of continuous development, but also in a timely manner to avoid its shortcomings, so as to further effective development in the long run.
At present, all countries in the world have begun to recognize the value of mobile payment and are actively developing the mobile payment industry. It is inevitable that the transaction volume in the global mobile payment market will increase.