A new report has estimated that mobile wallet usage around the world will increase by more than a third by 2021. The study analysed global transactions, ticket purchases and coupons all completed using a mobile device, and forecasted that the market for mobile wallet payment systems will expand by over 35% in just five years.
This steady increase can be attributed to the major technological developments in mobile payment devices and security of contactless payments over the past few years. Secondary authentication, where a PIN or a thumbprint recognition is required to complete a transaction, is an available feature on major mobile wallets.
It has been said that the younger generation will drive the mobile payment revolution. Of those who have used their mobile device to pay, consumers aged under 25 were the keenest to adopt the new technology. 69% of mobile wallet users were classed as a millennial, with 36% of those between the ages of 18-24.
What is a mobile payment?
Mobile payments are transactions that are completed using technology such as mobile phones or smartwatches. Popular mobile wallet services include Apple Pay and Android Pay, which have both been launched in the UK over the past couple of years.
These smart devices have the ability to store multiple credit or debit cards on a secure, encrypted server, alongside other useful cards such as gift cards and store cards. They work in a similar way to contactless cards, meaning that customers can pay quickly and easily with a single tap on a card machine.
It is predicted that mobile wallets may eventually be split between two purposes, general wallets which hold a variety of credit and debit cards, and some that are retailer-specific. These will use various technologies, such as QR codes, to make purchases and receive discounts in-store. Experts believe that businesses can strengthen customer relationships and increase sales by having an efficient mobile wallet.
Can my business take mobile wallet payments?
If you’d like to give your customers the ease of paying for their purchases using their mobile wallet, all you need is a contactless-enabled card terminal. Most modern devices are now equipped with the capability to accept contactless cards, but if you have an older model you may need to upgrade. The trend for mobile payments is increasing and developing, with companies now releasing clothing equipped with mobile payment abilities, so it is important to get on board with contactless as soon as possible to futureproof your business!
All of Handepay’s terminals can accept contactless mobile wallet payments as standard, whether you want to take payments at a fixed location or on the go. Speak to one of our friendly advisors today, and find out how easy it is to accept mobile wallet payments!