A technology that enables users to make payment transactions whether in a store or any other place. Over the past couple of years, adoption of mobile payment systems have been rife due to robust popularity of smartphones all over the world coupled with convenience in mobile applications usage. Moreover, the modern lifestyle that individuals follow, compels them to opt for technologies that can save time as well as avoid discrepancies. The essentialities of the fast and busy lifestyle to an extent has necessitated development of ways and means that are more accurate for the current age.
With arrival of newer technologies, the consumer taste and attitude will continue to alter. Latest systems that can facilitate faster transactions will probably make the conventional payment structures obsolete in coming years. Besides, some of the eminent financial institutions are currently trying to explore alternative income options through the digital payment structure. This is likely to further encourage the adoption of mobile payment transaction systems. A new research data released by Future Market Insights (FMI) reveal that the global mobile payment transactions market is set to grow in leaps and bounds in the near future. Between 2014 and 2020, this market is expected to expand at a staggering rate. The number of mobile payment system users in Asia Pacific is significantly higher as the region holds a large percentage of population that use smartphones.
Payments Systems are More Secure than before
Technology companies having expertise in mobile payment transaction solutions are aiming to make mobile payments safe and secure. For instance, FonePaisa – a startup based in India enables customers to make quick payments with their smartphone, from multiple options including net banking, credit/debit card, mobile wallets or UPI. The company has developed a secure payment platform that is compatible with almost any technology and can be accessed from the remotest location of the globe. To name some of the leading companies offering mobile payment solutions will be Braintree, Visa, GoogleWallet, and MasterCard. A lot of emphases is being given to ease of operations and develop simpler user interface.
Sectors that will Support the Adoption of Mobile Payment Systems
Considering the fact that most mobile payment applications need safe and strong internet network connections, telecom companies will undoubtedly play an important role in making such solutions a complete success. Meanwhile, mobile payments continue to be most effective in ecommerce industry. Mobile payments systems not only facilitate a convenient payment mode for online retail stores but also allows buyers to go cashless. Which is why, ecommerce is anticipated to account for a significant revenue share of the global mobile payment market. Towards the end of 2020, the global mobile payments market is expected to reach US $ 2849 billion, reflecting an impressive compound annual growth rate of 39.2%. This growth is primarily attributed to the increasing ubiquity of mobile phones and their overwhelming features that are replacing the physical wallet. Also, consumers are appreciating the convenience of using their smartphones for utilities other than calling. Mobile payment systems based on WAP/WEB accounts for the largest value share of the total market. However, NFC communication technology is anticipated to witness healthy traction over the next three years.
As per the report from FMI, customers tend to show hesitation in shifting from the traditional payment method on account of low reliability and unawareness about the advantages of m-payment. In addition, operational complexities in these applications sometimes discourage customer to install them in their smartphones. So, it is important that consumers are made aware of the newest m-payment systems in order to create a larger user-base and also for successfully retain the existing users.