Mobile payments are on the brink of becoming popular as we witness increased shipment of smartphones combined with mobile wallets, change in consumer habits and growing retail acceptance. On the whole, developed markets already have the device penetration and the infrastructure in place to support sophisticated mobile transactions between individuals as well as between consumers and financial institutions.
In 2015, US mobile payments transactions reached approximately $8.7 billion. Analysts predict that by 2019, the mobile payments are expected to reach $142 billion.
The number of people in the US using smartphones to pay for goods and services at the point-of-sale will continue to increase in 2016. Proximity mobile payments are point-of-sale transactions that use mobile phones as a payment method, via tapping, waving and similar functionality. The US proximity mobile payment transactions are expected to show growth of almost 200% in 2016. It is expected that by 2016, 37.5 million people will be using a proximity mobile payments service, which is a 61.8% increase from 2015.
The report provides an overview of mobile payments and the mobile proximity payments market in the US. It also talks about the mobile wallets market in the US and key players in the mobile wallets space, latest trends in the mobile payments industry and government regulations.
Mobile wallet technologies are in their infancy, but they are undoubtedly the future of point-of-sale transactions. Mobile wallet initiatives are being taken up by banks, telecom companies, financial technology providers and also governments across the globe. Nearly 78% of US consumers are aware of mobile wallet capabilities and 32% of US consumers are using a mobile wallet such as Apple Pay or Android Pay. Samsung Pay, Microsoft Payments, CurrentC, MasterPass and Visa Checkout are some of the other popular mobile wallets in the US market.
Convenience and immediacy are the key drivers for the increasing popularity of mobile payments and wallets among customers. With NFC payments opening up the opportunity for mobile transactions in-store, it is enabling retailers to provide varied payment options alongside other key retail elements like loyalty, offers and rewards.
In-store payments, digital wallets, contactless payments, seamless authentication and revived security solutions are the major drivers for the rise of mobile payments in the payments industry.