Major trend for Payment to Watch in 2020
- According to Forbes, increased consumer comfort will enable mobile payments within the US to exceed $ 130 billion by the top of 2020
- According to e-Marketer, the US mobile payment market increased 41% from $69.8 billion in 2018 to $ 98.8 billion in 2019
- US market is growing in terms of mobile payment and retailers are seeking to create their own mobile payment system
Human beings are reinventing the system of payment for the products and services ever since the art of trading got introduced. Back in those decades, money used to be the source of payment and a way to point out anyone wealthy. Lately, mobile payments are introduced to bridge the gap between growing numbers of individuals counting on mobile for transactions. Also, the recent disruption of currencies i.e. Bitcoins and Blockchains are predicted to disrupt the whole financial industry. The US market ranks sixth within the world in terms of mobile payment as compared to other countries. As per Julie Bernard, CMO Verve, “Along with the adoption of any new technology, businesses need to unravel a consumer problem which is tangible and particularly understood by them in their terms.”
Why is the US market growing such a lot in terms of mobile payment?
It is expected that within the US, there will be tremendous growth of mobile payments by 2020. A number of factors like consumer acceptance, technology infrastructure and the rapid climb of digital natives contribute tons for such progress during a very short period. According to Forbes, by 2026 digital natives are going to be 59% of the consumers within the US market. Consumer confidence in mobile payments along with the digital wallet is making the transaction process easier that eventually helps them to catch the pace of growth. Forbes reveals that Innovative businesses have recognized they have to incentivize mobile payments and offer more tangible benefits within the minds of the customer. As a result, consumers have embraced the change with these consumer-facing advantages.
Why is there a fight within the mobile payment system?
As discussed earlier, consumers only need their smartphones in their pocket for the payment of products and services. A participating retailer can automatically recognize it and bill their account. However, retailers are really not hooked into the present mobile payment system and are seeking their own solutions. Leading US retailers like Wal-Mart, Target and CVS have collaborated with several others to develop their own mobile payment system. The stakes in this market are potentially huge with a key issue on who has control over critical information while customers make purchases. Many retailers have already known their position within the global business by staying on the brink of their customers. Moreover, businesses fear that lack of control of mobile payments may lose access to valuable information.
Here are the highest 3 ways how you’ll improve the mobile payment system.
1. Improve productivity
There’s the necessity to vary the way the payment is performed to spice up business productivity. Processing payments faster could increase sales per hour. When the cashier time per user goes down, the typical wait eventually decreases increasing customer satisfaction. User payment and consumption data collected from the app are often useful to customize promotions and discounts.
2. Generate new business
The mixing of mobile payments into existing operations creates synergies to get new revenue streams. For example: In 2007, Kenya’s leading mobile network operator, Safaricom, launched a mobile money transfer system called M-Pesa.According to Pew Global, today quite two-thirds of Kenyans regularly use their phones to form or receive payments. With over 20 million recorded consumers, M-Pesa accounts for 86% of Safaricom’s users.
3. Increase stickiness of core business
Mobile payment solution within the service portfolio of a corporation can really add up even when offered for free of charge. When robust network impacts are built, it can benefit reduce churn rates moreover increase customer retention. The system is costlier for users to modify other competition. Therefore, the core service tends to stay longer increasing customer lifetime value. For example, a corporation can use apps and payment tools to hunt active users, expand its user base and pave the way for building a platform.
Major brands in new payment infrastructure at the end of 2019:
|Name of the brand||Market value|
|2. Master Card||$3.19 billion|
|3.GoCardless||$ 76 million|
|Stripe||$ 250 million|