Trends: Mobile Payment Apps Progressing

Mobile Payment Apps Progressing

Mobile payment solutions aren’t new, but they’ve only recently taken hold of the imagination of the mainstream market. In 2015, Forbes referenced a NerdWallet study to put together their list of best mobile payment systems, suggesting these solutions were still fairly niche, and found Breadcrumb, PayPal and Square leading the pack. Today, there’s a much broader range of mobile payment solutions available, and both small and large businesses are taking advantage of these applications to provide their consumers with convenient and safe payment systems.

nerd-wallet-compile

Third Party Payment Apps

Apple Pay is a top choice among US consumers using mobile payment methods, and a recent survey found that 25% of smartphone owners believed they would likely use a mobile payment app in the near future. Security concerns are fading as consumers become more familiar with the idea of mobile payment applications and apps ranging from mobile wallets to peer-to-peer mobile payment solutions to phone-only payment apps are storming the market.

Samsung announced the launch of its Samsung Pay mobile wallet service in South Korea earlier this year as a strong competitor to Apple Pay, and Android Pay will soon provide a host of US debit and credit card services to hundreds of thousands of stores. CurrentC has been developed by a consortium of retailers under the Merchant Customer Exchange, including Target Corp, BestBuy Co Inc. and Wal-Mart Stores Inc., and will first roll out in selected retailers in Columbus, Ohio. The hope is that CurrentC will improve the adoption rate of mobile wallet apps – currently only 4% of all US payments are made through mobile wallets, and outside of the US this percentage is even smaller.

Branded Payment Apps

Payment apps created by specific stores for their customers only are likely to have a lower adoption rate but do provide far greater branding opportunities and tailored solutions. These systems are built from scratch to match the needs of the particular organization, and Starbucks’ solution has been so effective that it facilitates almost five million mobile payments per week without any reliance on third-party applications. Branded payment apps also have the advantage of loyalty integration and customer analytics and intelligence reporting. The downside, of course, is that these systems are typically more expensive and logistically complicated than the implementation of a third party payment app.

Startups

 

And it’s not only the big players making their mark. PayPal recently acquired mobile payment startup Modest. Their app will give merchants the ability to add buy buttons to their products, much like Pinterest’s Buyable Pins. LevelUp provides mobile payments and rewards programs to over 14,000 businesses and offers a strong selection of tools providing clients with analytics, mobile solutions, and integrations. Currency Cloud allows customers to make payments securely as they move around the world, fully automating the global payment cycle, and Venmo lets users pay by text. Many of these startup payment apps are refining the mobile payment systems thus alleviating consumer security and usability concerns.

Wearables

Wearables are definitely trending, and one of the top benefits is the mobile payment solutions offered. Early this year, Cisco Systems forecast that wearables connecting to networks would increase by 530% by 2019, and with Apple Watch’s launch giving consumers the chance to swipe their wrist instead of their cards, it seems mobile payment solutions will stay top of mind as wearable technology permeates society.

Future Predictions

MEF’s 2015 Global Mobile Money report identifies nine global mobile money trends and drivers including the belief that in-store proximity payments will rise, social media is the future of commerce, and seamless authentication and convenience is important for the progress and adoption of mobile payment systems. Though the application of these systems is still limited and adoption gradual, the change has begun, and it won’t be long before these applications are as integrated into our society as mobile phones themselves.

By Jennifer Klostermann

Jonathan Custance
IoT –  Part of Your Essential Kit Jonathan Custance, Co-Founder of Green Custard outlines how industrial organisations can leverage IoT to dramatically reduce their carbon footprint  Technological progress and environmental sustainability have always been at ...
Jen
VoIP and PBX Phone Systems The cloud is already providing businesses with such a range of advanced tools and services, optimizing communication across channels, improving global cooperation, and supporting collaboration between teammates and partners both ...
Shireesh Thota
Here’s How to Position Your Organization for the Era of Data Intensity We live in a data-intensive era. Data is booming. Companies are realizing that data is one of the most important assets and they ...
Gary Bernstein
Most Dangerous Botnets While it’s no secret that the technical sophistication of cyber-attacks grows exponentially, adversaries often need widespread networks to make it happen. One of the ways to do that is to infect legitimate ...
Gary Taylor
Hybrid Worker Risks Organizations are under pressure to secure their remote workers, but they are also worried about the potential impact on user experience. Can they have it both ways without compromise? The pandemic has ...

SECURITY TRAINING

  • Isc2

    ISC2

    (ISC)² provides IT training, certifications, and exams that run online, on your premises, or in classrooms. Self-study resources are available. You can also train groups of 10 or more of your employees. If you want a job in cybersecurity, this is the route to take.

  • App Academy

    App Academy

    Immersive software engineering programs. No experience required. Pay $0 until you're hired. Join an online info session to learn more

  • Cybrary

    Cybrary

    CYBRARY Open source Cyber Security learning. Free for everyone, forever. The world's largest cyber security community. Cybrary provides free IT training and paid IT certificates. Courses for beginners, intermediates, and advanced users are available.

  • Plural Site

    Pluralsite

    Pluralsight provides online courses on popular programming languages and developer tools. Other courses cover fields such as IT security best practices, server infrastructure, and virtualization.