The IT industry is seeing a new digital revolution. With the rapid growth of online markets and e-commerce, the demand for a robust mobile payment solution among customers, merchants, and online platforms has increased. According to data shared by Gartner, the purchase-related mobile payment domain increased in global valuation from $45.1 billion to $224.3 billion from 2012 to 2017, coming to an annual growth rate of 38%.
Mobile Payment Trends and Statistics:
The global adoption rate in the mobile payment solution market has risen significantly. Some figures from recognized studies and sources are as follows.
- According to a survey done in Spain, about 67% of respondents accepted they have increased their usage of mobile devices for payments since the start of the pandemic.
- The global market for mobile payments is expected to reach USD 3 trillion by 2024.
- 70% of global millennials have cashed in rewards and discount offers that mobile payment methods offer as an incentive to their customers.
- 46% of global consumers believe that using zero-contact methods of payment is one of the most effective safety measures a store can follow.
Applications of Mobile Payment Solutions in the Global Economy:
They reduce costs:
Choosing a mobile payment solution can help businesses in bringing down their costs quickly. Merchants don’t need costly or heavy physical equipment for a POS unit or ink and paper rolls for receipts. Customers don’t need to carry around cash, cheques, or other physical forms of money. This ensures the customer experience is smooth and secure with minimal expenses for monthly maintenance.
They improve cash flows and revenue streams for merchants:
While using a mobile payment methodology, funds get transferred from customers to merchant payment accounts either instantly or after a fixed period. For merchants, this means a faster transfer of funds and easier access. Since customers only need their mobile devices with them. Customers find it easier to make payments to merchants that allow mobile payment options. In other words, a mobile payment solution can increase a merchant’s revenue streams and profitability as compared to traditional methods of payment.
Loyalty programs can be integrated easily:
Mobile payment platforms and solutions access and store large volumes of customer data. This makes it easier for merchants to integrate discounts or offers and run promotional campaigns that are targeted to unique customer needs and reward repeat customers. Some common loyalty programs include:
- Multi-tiered loyalty point programs: Customers need to complete a predetermined number of purchases to unlock the next level of discounts, reward points, or freebies.
- Point-based loyalty programs: Customers earn points for every transaction and can use them for free products or discounts.
- Hybrid loyalty programs: This type of program combines different types of customer loyalty programs to attract customers.
They provide actionable insights and data:
A remote or mobile POS system means merchants get immediate and secure access to customer data and insights. This data helps inform vendors of their existing customers’ spending behavior and buying patterns and directs them toward improving the quality of services and products and the buyer’s journey. Various data categories include frequency of customer purchases, their average spending rate, preferred methods of payment, and their products of choice.
They increase convenience for customers:
Customers who choose mobile payments as their method of choice for transactions can stop worrying about taking their wallets everywhere. Additionally, businesses that add a mobile POS system to their digital stores improve the customer’s experience through increased flexibility and efficiency. Based on the mPOS system chosen, vendors can accept a wide range of payment options from anywhere, whether in the store or remotely. By accepting a larger number of payment methods, vendors can reach more people, resulting in increased customer loyalty and profitability.
They increase competition in the market and improve the quality of services:
Leading businesses set themselves apart by offering a large number of payment options for customers to choose from. Using a mobile payment solution to provide ease of transactions, businesses can maintain their edge over the competition. Some payment methodologies a credible mobile payment solution should offer are
- EMV or contactless credit card payments
- QR code payments
- Digital wallets
- Link-based payments
They provide better payment security:
A mobile payment solution uses protected or encrypted codes to secure customer data. They never store the customers’ real credit or debit card numbers on personal devices or mobile payment software. This increases payment security and reduces the merchant’s liability.
They simplify record-keeping:
Besides providing actionable insights from customer data, mPOS systems also help vendors collect data which includes
- Information about sales
- Payment histories and records
- Updates about inventory
Every benefit discussed above makes mobile payment solutions a powerful and critical component in the present and future of financial technology and the payments industry. Adopting such a solution is the best way to retain your competitive edge in an increasingly saturated market.
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