Mobile payments are hot right now. They should be scorching, but they’re not quite there yet. Starbucks accepts them. McDonald’s was recently testing them. But to be perfectly honest, they haven’t really taken off the way most marketers envisioned. The revolution is, let’s say…on hold.
Depending on whom you’re talking to, you’ll hear mixed feelings in regards to mobile payments. You’ll get the pessimists who see no future in this form of payment. These are the consumers who find it rather hassling to load up an app – they’d rather just whip out some cash. These are the merchants who would rather not invest a ton of money in chip readers – especially if nobody is going to use them.
But then you’ll meet the optimists, like myself. The people who know mobile payments have a prosperous future. We live in a mobile-based world nowadays. eMarketer.com predicts $87 billion in mobile e-commerce by 2016. If people can shop on their phones, they will certainly pay with them. Just so we’re clear –“ mobile payments” refers to the way you pay with a card swiper on a phone, or an app you have to download, or a QR code you have to scan, etc. Now, lets take a look at 5 reasons mobile payments will soon rule the world.
Sending money through thin air can be a bit scary. And admittedly, security for mobile payments is not flawless yet. However, it’s safe to say security shouldn’t be something to worry about. You’ll often need a PIN, fingerprint scan, password, etc. Take a second to think about credit cards, too. They’ve been around for more than 60 years and there are still security issues. And how about cash? It’s always at risk for being lost or stolen.
People complain about social media outlets tracking their data, yet social media grows every single day. Data tracking is not going away, and companies will use mobile payments as a powerful method to learn more about their customers’ spending habits.
More than 60% of the U.S. owns a smartphone, and the number keeps rising. People want the ability to have everything in one spot, quickly, all at once. Fat wallets and purses will become less and less necessary. Would you rather leave the house with your pockets stuffed, or just a sleek phone?
Everyone loves discounts and rewards. And if you’re like myself, you’ll even go to the trouble of downloading an app just to save a couple bucks on lunch. Mobile payments put the coupon and the money in one place. You’ll no longer need to cut coupons and carry them along with your cash.
They’re Inexpensive for Businesses
Some credit card companies charge businesses an arm and a leg. A lot of mobile payment companies do not (it’s usually around the 2.2% – 2.8% per transaction mark.) Businesses love saving money, end of story.
Do you think mobile payments have a bright future? What are your thoughts?