In recent years, the mobile payments market has seen progressive development. This has been made possible by the proliferation of smartphones and internet innovation. Statistics show that mobile payments amounted to USD1.139 trillion in the market in 2019, with this number expected to reach as high as USD4.691 trillion by 2025. Payment using the mobile phone has become the most popular model of the payment system, which has stimulated the participation of a wide range of other applications, facilities, and home appliances to offer this type of payment mode.
So, what is the secret of the success and growth of the mobile payments market?
Continuously Improved Experience for the Mobile User.
In line with the innovative development of the smartphone and tablet, many e-commerce vendors have applied responsive web design to cater to the needs of the mobile user, in turn providing the increased convenience of the mobile payment mode by online buyers.
Corresponding Launch of the Electronic Wallet and Other Payment Applications
The rapid development of the mobile payments market reflects the increasing maturity of the consumer. Correspondingly, a number of payment applications and electronic wallets have been launched to cater to this growth i.e. Google Pay, Apple Pay, Alipay, WeChat Pay are all payment applications that promote mobile shopping.
Added Security
Another reason for the rapid growth of the mobile payments market is added security. Mobile payment apps like Google Pay and Apple Pay protect the account holder’s details by incorporating a world-class security infrastructure and specialist tools to safeguard every account holder’s payment details.
Aligned with Consumer’s Needs
The simplicity, ease of use, and speed of the smartphone minimize the turnaround time for the consumer, enabling them to conveniently complete and pay for their online purchases anytime, anywhere, offering them a transformative shopping experience.
Smart devices, coupled with mobile payment modes, have not only provided the consumer with a whole new approach to purchase products and services but also transformed the consumer’s payment habits and experience. In countries and regions of different cultural backgrounds, the growth of the mobile payments market is also varied. According to the ‘Global Consumer Insights Survey’ conducted by PWC in 2019, 8 out of 10 of the world’s biggest mobile payments markets are located in Asia. Of these 10 markets (countries or regions), the ranking is as follows: China, Thailand, China-Hong Kong, Vietnam, Indonesia, Singapore, Middle East, Philippines, Russia, Malaysia; with China taking the lead as the world’s number one market where mobile payment is widely adopted. PWC has highlighted that Asian markets remain the driving force behind the push towards mobile payment.
In 2020, the global pandemic caused by Covid-19 has severely disrupted social economics, lifestyles, and commerce. The impact was especially devastating in shopping malls that were reliant on human traffic. It forced many of these brick-and-mortar businesses to quickly transform their business models and go online, leading the consumer to cultivate the habit of online shopping. In addition, with enterprises, as well as governments, advocating cashless transactions, there has been increasing growth in the global number of new mobile payment account holders. Across the globe, more than 10 countries have implemented measures to drive increased usage of mobile payment. In May, the ‘Washington Post’ posted an article online titled ‘The Coronavirus is upending cash economies. Mobile money could emerge the winner. Currently, in the US and other countries, Apple, Google, and other companies that offer mobile payment services like the mobile wallet (enabling the account holder to digitally transfer funds) have become increasingly popular. The global pandemic has accelerated the development of the mobile payments segment, thrusting mobile payment into the forefront as an alternative to cash.
Measures implemented to combat Covid19 have impacted the cash economy in many aspects, creating an opportunity for mobile payments to emerging the winner in the future. Compared to the traditional modes of transacting and doing business, the convenience of mobile payment, enabling the consumer to complete their purchases anytime, anywhere, is a distinct advantage. Mobile payment has become the “key enabler” to promote consumerism, as evident during the pandemic where online shopping has shown a distinct upturn. In conjunction, this upturn has stimulated the development and digitization of financial systems. This is the transformation of the ecosystem continuously generating change in the consumer’s shopping habits. While the majority of the mobile payment account holders are middle-aged and young adults, global e-commerce vendors must plan ahead, be prepared and able to rise up to the challenge of catering to the next generation of consumers for whom the phone would be an extension of their bodies.
Presently, Oceanpayment is offering a large variety of mobile payment products, which enable merchants to cater to diverse consumer segments and shopping needs through a single mobile device. Allowing easy, convenient, and secure payment anytime, anywhere for the customers. For further information on mobile payment and other related products, please contact hk@oceanpayment.com!
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