Mobile payment and in-store payment growth are expected to increase much more than mcommerce and mobile peer-to-peer transactions during the next years. Their main advantage being that they allow clients to pay for products when and how they want.
Although up to now, mobile payments haven’t really been adopted by consumers or retailers, mobile payments are expected to become mainstream in 2017, when it will be expected to have reached $90,000,000.
There will be a big shift in share when it comes to the growth in mobile proximity payments during the next couple of years, due to the drop in mcommerce from 90% to 50% of all mobile payments and the rise in proximity payments from 4% to 45%.
According to the consulting agency Forrester, there are three types of mobile payments, in-store or mobile proximity payments, mobile peer-to-peer or remittances and mobile remote or mcommerce. Although they’re all expected to grow shortly, in-store payments will grow a lot more than the other two, reaching 137% compound annual growth rate. Its greatest acceleration moment is expected to arrive in 2014, once both retailers and consumers have had time to test it and to learn how it works.
Mobile phone payment for in-store payments are expected to grow more with low-cost purchases such as parking, transit or vending machine transactions as well as quick service restaurants with tier-one retailers that have integrated access to coupons, offers and rewards into their payment service.
According to Forrester, it’s not likely that NFC will overpower the mobile wallet sector. Forrester says that even though they agree that NFC has some great opportunities and will be widely accepted over time, using NFC for mobile payments might not be a good idea. Consumers must have a phone that integrates the NFC technology in order to be able to use it, which would involve changing the smartphone in lots of cases, so this is just another obstacle in the way of NFC becoming consumers’ favorite mobile payment method. They say mobile wallets – BoxPay, Google Wallet, Isis - will be the kings for the next few years.
Also according to Forrester, e-commerce will account for 9% of the overall sales by 2016, and mobile commerce will account for 8% of e-commerce. Nonetheless, Forrester estimates that by 2017 mobile payments will reach 90 billion dollars.
While the adoption of mobile payments isn’t quite accelerated, 26% of mobile users affirmed that they would be interested in making in-store mobile payments. Also, in 2013 there are 61% more consumers that know about virtual wallets.
There are all types of mobile wallets emerging in the market and what’s interesting is that every wallet offers another kind of service, apart from mobile payment. According to a recent study published by Forrester, 76% of mobile users would like to have loyalty programs, discounts, coupons, rewards, and special offers in a mobile wallet. All these data points to the fact that, provided the necessary conditions, more consumers would be ready to embrace mobile wallets.
