We have talked about mobile payments before, but we have yet to go into the greater detail it deserves. 2016 is said to be the year that mobile payment breaks out and becomes main stream. There are a couple factors for believing this, primarily the push from handset manufacturers.
Apple Pay, Android Pay, Google Pay, and Samsung Pay, are the four mobile payment options with the largest amount of dollars behind them. In fact, these applications will be coming standard on their respective devices on the new phones set to be released in 2016. Secondly, the amount of retailers and outlets that will accept mobile payment is also set to increase. Samsung Pay is already supported by over 3 million different outlets, Google wallet supported by over a million, while Apple and Android Pay are slowly adding locations and currently sit at about 700,000. Each of these numbers are still rising, often involving some form of promotion or loyalty programs linked to using certain pay systems.
Consumers are also becoming comfortable using their mobile devices as a payment option. In 2014, when asked if they had made a purchase with their mobile pay apps, 37% of those surveyed said they had. That number has increased to 43% in 2015. The audience pushing this forward is the 25-34 year old demographic. A demographic that is more willing to accept new technology and embrace it into their everyday life. eMarketer expects this demographic to make up 37% of the mobile paying user base in 2016, which will be apart of a growing user population that is projected to be 37.5 million at the end of 2016, compared to 23.2 million people in 2015.
A push from manufacturers and a growing user base combine to form one thing; A very large spike in the amount of dollars involving mobile payment. 2015 saw $8.71 billion dollars used through mobile pay, 2016 is expecting to see that number rise to $27.05 billion dollars. Average user spending projected to grow from $376 in 2015 to $721 per user in 2016.
For those in retail, the resources and systems to support these forms of payment are already available and should be implemented into your point of sale systems. If you already have your own retail mobile app, then having your developers (or outsourced developers) integrate the required SDKs to accept mobile payment will be integral to growth in the retail sector throughout 2016. Adapting to the changing technological environment will be a defining factor for those serious in sticking around in the near future, especially if you find your primary demographic to be in the 25-34 age range.
2016 is going to be an exciting year, and for those on the fence about developing a mobile app for their business. With these new forms of mobile payment ready to take off, now would be the time. Feel free to drop us a line at any time, as we are always excited to discuss new technologies.
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