In our previous article, we discussed Payment Trends in the Vending Industry and the technological advancements that have resulted from the changes in consumer behavior. Now, we will look at how mobile payment solutions are being rapidly adopted and integrated in stores and services across the world. Applications such as PayPal, Apple Pay and Google Pay are becoming increasingly popular as the years go by. In fact, the mobile payments market is expected to reach a value of $4.69 trillion by the year 2025.
As mobile payments skyrocket, companies are investing in mobile payment technology and paying close attention to consumer behavior to get a better grasp of their payment preferences. Here are some of the top payment trends in the mobile industry right now:
Mobile-point-of-sale (mPOS) technology allows businesses to take their payment solutions wherever their customers may be. With mobile payment solutions, they can accept payments even when they’re not physically in their designated storefront.
Take popular fast food restaurant Chick-fil-A, for example. When their drive thru is busy, oftentimes they have their employees walk around to each car with a mobile device where they then take your order and complete your payment. This allows them to speed up the checkout process and get their customers on their way faster.
Many businesses have had the option of accepting mobile payments for some time now, however customers still preferred to pay with cash or credit card. Now, contactless payment methods provided by mobile companies such as Apple, Samsung, and Google are being adopted at a higher rate than ever before. Because they offer mobile wallets that allow consumers to pay without touching any payment terminals, along with the extra benefit of additional security and authentication features, customers have been more inclined to pay for their purchases with their mobile device.
While mobile wallet payments only amounted to $75 billion in 2016, they are forecasted to grow to $500 billion by the end of 2020 – or about 80% over five years. Visa reports that already “29% of Americans now make zero weekly purchases with cash, with the percentage of people who use cash for everything dropping from 24% to 18% since 2015.”
Payment industries have long been looking for advanced security methods to ensure sensitive data is safe from outside tampering. Face and finger scanning are two of the top mobile security measures available right now and are quickly replacing passwords and other authentication measures.
As mobile payments increase, we are likely to see an increase in biometric authentication as well. Biometric authentication is used in computer science as a form of identification and access control. It has become a reliable way for merchants to verify the identity of their customers and partners, and has also proven effective for preventing mobile wallets from being hacked.
We live in a world where convenience is everything to customers. The increase in mobile devices has sparked the growth of the e-commerce industry and customers are turning to their mobile devices to purchase groceries, shop their favorite stores, and everything in between. According to the E-Commerce Foundation, more than 25% of consumers purchase via mobile devices weekly rather than in-store.
Especially with the current COVID-19 climate, customers are more likely to shop online to comply with social distancing and stay-at-home orders. During these unprecedented times, many companies are providing free shipping and other incentives to customers who choose to do business via their mobile device.
ID TECH offers a variety of payment solutions for various industries including ATM, loyalty, parking, transit, and vending. Of those solutions is ID TECH’s VP3320S, a PCI PTS 5.X SRED mobile payment device that supports all contactless payment methods from tap-and-go cards to payments from mobile wallets. It is able to connect to iOS and Android host devices and is housed in an ultra-compact design, making it the ideal unit to be integrated into a mobile payment solution.
Learn more about our mobile solutions here.
ID TECH is a leading global payment peripheral provider with expertise in magnetic stripe, EMV contact, EMV contactless, and OEM customization solutions. We have a strong foundation and continued success rooted in card readers and are always expanding our product offering to provide innovative solutions for the ever-evolving payments industries. Payment Security is an integral part of our product offering, and ID TECH as a company prides itself at being at the forefront of payment security in our design, development, manufacturing, and sales processes.
To learn more about ID TECH and our dedication to achieving payment security, please visit our about page.