Mobile wallet use will increase over the next five years

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!

Financial disclaimer:

Terminal hire contracts are provided by Merchant Rentals Limited, who is authorised and regulated in the UK by the Financial Conduct Authority (FCA) for Consumer Hire under FRN 720500. Terminal hire can be for consumer hire and non-regulated hire contracts. Please check your contract carefully for details. Regulation of all consumer hire fall under the control of the FCA.

Handepay Ltd is authorised and regulated by the FCA for Consumer Credit under FRN 673564. Handepay is a credit broker for consumer hire not a lender.

Handepay acts as an introducer of card acquiring services on behalf of EVO Payments UK, the card acquiring service provider. EVO Payments UK is the trading name of EVO Payments UK Ltd, a payment institution that is authorised and regulated by the Financial Conduct Authority (FRN number 959332).

Existing Cards Businesses- The one-month rolling terminal hire contract from Merchant Rentals is only available to businesses that are switching from their current acquirer to EVO Payments UK arranged through Handepay.

New to Cards Businesses- The 12-month terminal hire contract from Merchant Rentals is only available to businesses that are new to card payments and wish to receive acquiring services from EVO Payments UK, arranged through Handepay.

The Next Day Banking Settlement service provided by EVO Payments UK incurs an additional fee of £4 a month on top of your acquiring service charges and fees. Provided your card machine performs a reconciliation before 12am (midnight), you’ll receive settlement of funds the next banking day.

Editorial disclaimer:

The information we provide does not constitute financial advice and might not apply to your business. Always carry out research into your business’ needs when choosing a new merchant services provider.

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