Payments experts have predicted for several years that the “year of the mobile wallet” is just around the corner. And 2016 might just be the year.
The promises of mobile payments are finally turning into realities. Android Pay, Apple Pay and Samsung Pay are finally materializing – not only on consumers’ smartphones and apps but also in retail stores, on airlines, at banks and other venues where mobile wallet payments are actually accepted.
In developed countries, adoption is growing because technologies, consumer willingness and wallet-ready mobile devices are creating the perfect marriage of opportunity. And mobile payments are also growing rapidly in underdeveloped regions of the world, filling a void for businesses, consumers and residents who do not have access to traditional, brick-and-mortar banks. An Internet connection and a banking/payment app on a smartphone are filling the bill in Africa, South America and elsewhere.
Here’s a quick look at what’s happening to make 2016 a likely watershed year:
- A report from the Institute of Electrical and Electronics engineers predicts that mobile payments, in effect, will “kill cash” by the year 2030, when mobile payments will be secure enough to dominate cash and cards for payments. Yes, that’s still 14 years away, but the seeds being planted in 2016 are undoubtedly sprouting that eventual cash-less reality.
- U.S.-based retailer Kohl’s is already rolling out the trifecta version of a mobile wallet: incorporation of Apple Pay with the store’s branded credit card and its Yes2You Rewards program – all with one-click checkout. Customers can pay from a mobile phone on their Kohl’s card or Apple Pay, and rewards are automatically funneled to the store’s loyalty program.
- Facebook’s Messenger app now supports debit-to-debit transfers, according to CNET.com. As long as both participants in an online chat have linked debit cards to their profiles, they can transfer money online with a few taps/clicks.
As CellPoint Mobile’s Outlook 2016 white paper (available for free download) notes: “By the end of the decade, and much sooner than many airlines realize, more than 50% of travel-related purchases will take place on smartphones and wearable devices as passengers across the globe fully embrace and rely upon the mobile environment for the majority of their transactions.” Let CellPoint Mobile know today how we can help.