By 2020, mobile payments or virtual wallets could reach a total value of more than $2.7 billion.
Just four years later, the value could nearly triple, at more than $9 billion. Such rapid growth and acceptance of mobile wallets is a logical outcome of the “mobile first” trend that has taken over the world. More and more customers want one device “to rule them all” – one that will allow them to carry out as many tasks as possible. And since mobile wallets enable them ease of access and use of money, it is certain that demand for this service will continue to grow in years to come.
Bond between Retailers and Customers
Consumers are sure to love the possibility of saving money and better controlling their spending. This opens up the possibility to better connect customers with retailers.
Today’s average customer will reach for their device several times a day to check on a product, look at reviews, prices, features or just to locate a point of sale where they can get the desired product or service. If to all this we add the possibility of personalized promotions through loyalty applications, sales applications, SMS’s, etc., it is clear that with the addition of payment options, smartphone is becoming the most important channel between the retailer and the customer.
Payment Made Simple and More Personal
A huge part of the customer experience in the buying process is without a doubt the payment itself. If this part of the experience is simplified and made additionally attractive by mobile wallets, as is the case with mobile payments and with the use of data collected in the process, than the offer that customer gets is more personal and the whole shopping experience will be better and ultimately more positive, both for the customer and the vendor.
But, mobile payment is not the only trend in today’s card industry. The contemporary pace of life requires the availability of goods and services 24 hours a day in the physical world, so the offers through a variety of self-service devices are on an extraordinary rise.
Whether it is about simple vending machines for beverages and food or advanced delivery services, there is a dedicated device for everything. Although until recently, “cash is the king” rule applied to such services, the situation is slowly changing even there.
By 2024, mobile payments or virtual wallets could reach a total value of more than $9 billion.
A Different Perspective
Mobile wallets shouldn’t be viewed only from one perspective, because they can provide consumers with so much more. No one today has a problem with carrying a debit or credit card, but what about all the loyalty cards, gift cards, coupons, vouchers and accounts that consumers collect after the purchase? Customers gather so many plastic cards that they can hardly close their wallets.
The integration of these within a mobile wallet application has the potential to further their acceptance rate. Instead of searching for the right card, while other customers anxiously wait in line, all that is needed to pay for food, clothing or lunch is your mobile device. Additionally, in order to encourage the use of mobile wallets, users can be offered savings options with special offers or unobstructed access to coupons designed exclusively for them.
What Do Customers Talk About?
Analysis shows that in 2016, 97% of all talks about mobile payments were about the possibilities provided by Apple Pay, Samsung Pay and Android Pay. Most attention was given to the improvement of their services. In addition to discussions about mobile wallets, contactless cards were the most discussed topic (47%), followed by biometrics (33%), personal payments (14%), and portable electronic devices (6%).
Mobile Wallets by Numbers
In the survey conducted by Computer Services Incorporated (CSI) in August of 2016, some interesting findings were gathered:
Mobile Wallet by Mercury Processing Services International
Mobile Wallet is a digital version of a physical wallet. It allows a seamless mobile payment service ensuring consumer convenience and the highest level of security. Mobile Wallet is based on HCE technology that enables the virtualization of payment cards and provides their tokenized representation based only on software, leveraging cryptographic processes traditionally used by hardware-based secure elements without the need for a physical secure element.
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