Mobile payment applications like Apple Pay, Samsung Pay, and Android Pay are generating a whole lot of buzz these days – but should you pay attention to it? Mobile payment adoption has been relatively slow (for instance, only about 13% of cardholders have linked a card to their Apple Pay account), but companies are continuing to spend big bucks on development and implementation. Let’s take a look at five reasons why mobile payment providers are feeling optimistic.
1. Worldwide smartphone growth
In the US, it seems like everyone has at least one smartphone – but that’s not the case worldwide. Mobile payment companies see tremendous potential for growth in markets around the globe that are still adapting to the smartphone revolution. They’re betting these new adopters will be excited to take advantage of mobile technology to streamline their payment experiences. So far, this appears to hold true: about one million Apple Pay users alone sign up every week around the world. If that trend continues, mobile payment companies will be quite happy indeed.
2. EMV disappointments
The recent push to adopt EMV chip reader technology has been fraught with setbacks, and mobile payment companies are hoping to capitalize on consumer discontent. EMV transaction times have sped up as the technology has been improved, but mobile transactions are still faster. Of course, this is only true if both the cashier and the customer are familiar with the technology and know how to use it properly. As with any new system, there is a learning curve. Fortunately, mobile payments are generally quite intuitive.
3. Expanded features
Early mobile payment systems were basic and didn’t offer much in the way of a pleasant user experience. That’s all changed as Silicon Valley and beyond throws its considerable research and development muscle behind the industry. Customers and business owners alike now reap the benefits of recent changes such as the ability to offer coupons or add loyalty program cards directly to the app. Continued technological advancement will undoubtedly bring even more features to market that traditional point of sale systems just can’t match.
4. Growing business network
Mobile payment providers are courting businesses big and small, incentivizing them to join their respective networks. From national chains like Starbucks and Panera to local mom and pops to ubiquitous apps like Airbnb and Lyft, mobile payments are becoming more widely accepted every day. Mobile payment companies are fighting a two-front battle: customers won’t adopt new payment methods if they aren’t accepted at their favorite businesses, but businesses won’t offer mobile payments if customers never take advantage of them. Working on both parts of this chicken and egg problem could lead to a very exciting future indeed for mobile payments companies.
5. Tremendous profits
Mobile payment providers charge their issuers a certain amount of money per transaction, which can and will add up to significant revenue over time. Scalability is the name of the game, which is why companies are pushing so hard for both customers and businesses to adopt the technology. Once mobile payments are mainstream, Apple, Samsung, and Alphabet stand to make billions of dollars.
Want to get in on this?
If mobile payments sound like something you’d like to explore, that’s great! Give us a call at 1-855-360-0360 or drop us a line on our website – we’ll explain how everything works and show you how you can start accepting mobile payments quickly and easily. There’s no better time to get going!
PS – Read more about how you can take advantage of the mobile revolution here.
PPS – Today’s customers are shopping across multiple channels and devices. Here’s how to reach them no matter where they are.