Future trends: In-store mobile payment

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Future trends: In-store mobile payment

Mobile payments have had a slow adoption rate across the globe despite extensive mobile device use but research suggests some countries have embraced the trend and it will become popular in the future.

Internet users surveyed in 2015 said that retailers should offer mobile payments in-store, and many were interested in using mobile payments to make an in-store purchase during the holiday season (eMarketer, 2016).

The UK is the leading market adopter of in-store mobile payments. According to a report by Ayden, “Among individual markets, the U.K. continues to lead the way in mobile payment adoption, with 49% of online transactions on mobile device (and just over 34% of these on a smartphone). Among other high adoption markets.”

Last year, Apple Pay was made available in Britain. Apple pay can be used with new Apple devices like the Apple smartwatch, iPhone 6 and iPhone 6 Plus.

Android and Google have their version too, launched in the US and Korea. Both will launch in the UK 2017. However, US adoption of in-store mobile payment is far lower than that of the UK “80 percent of consumers in the U.K. and Australia have used a tap-to-pay method, 80 percent of consumers in the U.S. had not” (Barjin, 2016).

The main barriers to in-store mobile payment are consumer’s payment security fears, lack of acceptance from retailers and limited markets with Apple, Samsung and Google pay.

Despite in-store, mobile payments slow acceptance recent research from Juniper shows
“mobile and wearable contactless devices alone will reach $98 billion by 2018, up from under $35 billion in 2015” (O’Brien, 2016).

According to Business insider report integrated loyalty programs and other add-on features will be key to mobile wallets taking off.

Consumers are showing interest in wallets with integrated loyalty programs. Other potential add-ons, like in-app, in-browser, and P2P payments, will also start fueling adoption.This strategy has been proved successful in China with platforms like WeChat and Alipay.

Read more on digital technologies and loyalty https://www.azpiral.com/digital-technologies-influence-retail-sector/

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