Mobile payments are the latest trend in the payments ecosystem, driven by mobile technology innovations which are expected to shape its future.
Evolution of Mobile Payments
Mobile payments have been used as a method of payment for some time. In 1997, people were able to make payments via texts to the Coca-Cola vending machines. Since then, there have been mobile technology innovations which have shaped the market. PayPal came along in 2006 to introduce an internet-based mobile payment.
Since 2006, there has been widespread adoption of mobile payments thanks to continuous mobile technology innovations. Lately, the market has seen the entrance of super platforms such as Facebook and WhatsApp in digital payments. With such big companies showing interest in mobile payments, much is expected in the near future.
Growth of Mobile Payments
There is an increasing trend in mobile payments thanks to high mobile subscription and mobile innovations. This trend is undoubtedly likely to continue as projections show that between 2019 and 2026, the market will grow by 33 percent annually. For instance, four out of ten people are using mobile phones to make payments.
With over 96 percent of people globally using mobile devices such as mobile phones and tablets, mobile payment is attractive because of the advantages which come with it over other methods of payment. For instance, it is convenient, instant and secure. This has been enabled by the advancement of mobile technology.
Mobile Payments are Gaining Popularity
With the increase in smartphone ownership and internet connectivity, people are finding many uses for their phones. One of them is online shopping. Six out of ten people use a mobile phone to shop. Consumers' preferences are changing, and they are now more conscious about the security associated with mobile phones.
Traders are following their consumers by enabling mobile payments. The e-commerce market is on the rise globally with massive e-commerce platforms such as Amazon and Alibaba, leading by example, by starting their own mobile payment platforms. Other small e-commerce platforms have risen in emerging markets since becoming mobile payment enablers.
Driving Mobile Payments Further
Mobile payments technology innovations are expected to continue across the globe. These innovations are likely to be more attractive to consumers and traders as well, hence driving the adoption and usage of mobile payments. There has undoubtedly been substantial growth in the fin-tech sector which has in the past disrupted the banking industry.
Many countries across the world are advocating for cashless economies. If fully adopted, people will move from cash payments to digital payments which are dominated by mobile payments. This is likely to boost the mobile payments market further. However, there is a need for increased security of these innovations to protect consumers.