Mobile payment volume continues to rise in 2018 as consumers become more comfortable with making payments through their phones and new technology emerges to ensure more convenient mobile transactions. Smartphone and tablet usage has also skyrocketed with mobile phone usage estimated to reach five billion by 2019. This would equate to around 67% of the worldwide population using mobile devices.
The rise of services like Venmo, Alipay, and Zelle have further increased the ease and options that consumers have when transferring money or making payments through a mobile device. A recent report by MasterCard predicts that in-store mobile payments in the US will reach $500 billion by 2020. The report also concludes that consumer’s loyalty to traditional payment methods remains strong and is the strongest barrier to consumers adopting mobile payment solutions.
Impressive Stats Regarding Mobile Payment Trends
- PayPal recorded 155 billion in mobile transactions for the 2017 period, up 52% from 102 billion in 2016.
- 47% of online merchants believe traditional anti-fraud solutions for ecommerce cannot successfully protect against mobile fraud.
- Brand loyalty apps which include the ability for users to store billing info, such as the Starbucks App, significantly increases mobile engagement and transactions. Over 30% of Starbucks’ transactions are now attributed to mobile devices.
- The amount of in-store mobile payments in the US is estimated to reach 150 million transactions by 2020.
- The mobile payment technology industry is projected to be a trillion dollar industry within the next few years.
- Worldpay estimates that U.S. mobile wallet transaction volume in 2020 will outpace the combined volume of payments via credit card and debit card as traditional payment methods continue to lose market share.
- In-app or mobile only discounts & rewards was the most persuading factor in luring consumers to use mobile payments, according to a recent survey by Pew.
Current Roadblocks to Wider Adoption
- Over 33% of consumers believe they would increase their usage of mobile payments if more brands supported the technology.
- Public WiFi networks are a significant concern among cybersecurity researchers, that worry sensitive user data could easily be compromised when making payments through unsecured or vulnerable WiFi networks.
- Another Pew study found that over 70% of the population have reservations with making mobile payments, due to security and privacy concerns.
- Older generations still prefer to use traditional methods such as credit cards, debit cards, cash, and checks.
Despite some roadblocks and security challenges, the path looks pretty clear for mobile payments to continue with exponential growth in the coming years. Companies that haven’t taken advantage of mobile payment technology will most likely be considering their options as a greater percentage of the population joins the billions already using their mobile devices to navigate the web and purchase goods and services.