When mobile payments hit the scene in 1997, there were only a few things consumers could buy. Today it’s a different story. Paying with a phone or an app is big business and, considering 96% of adults ages 18 to 29 and 81% of all Americans own a smartphone, business isn’t going to slow down any time soon. The global mobile payment industry is projected to grow by around 60% and reach $3.37 trillion by 2024.
Not surprisingly, Apple is at the forefront of this burgeoning movement. Their Apple Pay app is accepted by 70% of American retailers. It also utilizes near-field communication (NFC) technology for its transactions, which is projected to be the most prominently used mobile payment tech in the market. Google Pay also uses NFC tech and allows Android users to make mobile transactions. PayPal is another key player in the industry, as their app allows individuals to purchase items with funds in their personal PayPal accounts via a barcode-like quick response (QR) code.
In addition to big names like Apple getting involved, there are several key mobile payment trends poised to drive it to its lofty 2024 projections. Changes in payment preferences by Millennials and emerging Gen Z users are driving this increase. Improved banking infrastructure are mitigating concerns about security, as are biometric authentication methods used for personal verification. Plus, other forms of technology like artificial intelligence (AI) assistance and shopping via a store’s social media page may make it possible for retailers to build an even broader mobile consumer base. The ever-evolving wave of technological innovation will continue to give rise to numerous mobile payment trends that are vital for business and consumers to track.
To learn more, check out the infographic below created by Ohio University’s Online Masters of Business Administration program.