Here we go through the top payment industry trends for 2015 so far. Mobile Wallet
Consumers are more and more open to idea of their smartphone or smartwatch replacing their wallet. The convenience of going cash free via a device that is almost always on you is luring people to buy into mobile wallet. 56% of consumers are willing to pay for their goods or services using their smartphone. In fact the global market for mobile payments is estimated to be worth $720 billion in transactions by 2017. Apple, Samsung and Google have all introduced their own mobile wallet solutions and will continue to offer them as the year progresses.
Merchants are increasingly expected by tech-savvy customers to be ready to accept mobile wallet. This can pose a problem for businesses that have POS systems which do not have NFC – typically a requirement for processing mobile wallet payments. Expensive upgrades, additional hardware purchases, separate reports, or the need to buy a whole new POS system can be all be avoided however with a mobile wallet like Givex’s which works via Single Use Number (SUN) technology. Customers simply generate a QR code or barcode on their mobile device which can be scanned using the POS’s existing barcode scanner.
Beyond this you can run a card-less loyalty and gift card program via your Givex wallet, engaging customers over mobile to encourage repeat visits, get key data and create lift when they visit your location(s). In fact 60% of consumers who already make mobile payments said they would use mobile payments more if they received instant coupons and 36% said they were comfortable handing over personal information for such rewards. Additionally 78% of consumers believe that the key benefit of a mobile wallet is to save money vs. 57% who believe they key benefit is convenience.
Once fodder for sci-fi movies, biometrics is now very much a reality. Europe in particular has seen an early acceptance of biometrics amongst consumers. Currently 49% of European consumers can see biometrics secured payments emerge as a viable and probable payment technology alternative. Mastercard, for example, launched the first European biometric card trial in Norway and Poland, with cards featuring a built-in finger vein sensor which identifies the person using the card. One study estimated that biometrics will be the secure authentication method for 65% of all mobile-commerce transactions in five years. This means that 126 billion biometric payment transactions valued at more than $1.1 trillion will be made on mobile devices in the future. In fact the addition of biometric data as part of identity verification is being welcomed by banks. Barclays, for example, is introducing voice recognition for its telephone banking service. Worldwide, biometrics can be seen to grow via the fingerprint scanner present in the likes of the iPhone 6 and Samsung Galaxy S5, which are seen to add an extra layer of security in the scanning process.
Regulatory changes in Europe and beyond, focused on protecting consumer information and privacy, affect the way payment transactions are processed globally. With institutions such as the European Banking Authority revising its Payment Services Directive in 2015 consumers are increasingly expecting merchants and payment processing companies to take their needs as top priority. In fact 79 percent of consumers are concerned that someone might be able to steal their information when it is sent wirelessly. Expect consumers to switch their business to merchants and payment providers who distinguish themselves in the marketplace with stronger protections for customer information and privacy.
Beyond this in 2015 merchants will see a trend towards allowing their customers to pay via their preferred method. This will entail providing the right mix of payments types for your customer base and remaining agile in the adoption of new payments types.
For more on an easy and effective mobile wallet implementation strategy contact Givex.