As we all may know, mobile payments refer to the use of a mobile device, such as a smartphone, to pay for goods or services. This can be done in a variety of ways, such as using a mobile payment app or by entering payment information directly into a website or other online platform using a mobile device.
Mobile payments offer a convenient and secure way to conduct transactions, and evidently so, their use has become prevalent in our life that we no longer feel the need to always carry cash or cards. They’re secure, efficient, and exactly what we need for our fast-paced routines.
But will mobile payments remain relevant in the next 5, 10 or 15 years?
Most definitely, and here are 7 reasons they will continue to matter to the financial industry in the coming decades.
- Consumers can complete payments from their phone or tablet anytime, anywhere, which is especially useful for people who do not have easy access to traditional financial institutions or for those who want to complete a payment quickly and easily.
- Mobile payment apps typically use advanced security measures such as encryption and tokenization to protect sensitive information. In addition, mobile payment apps often allow users to set up additional security measures such as biometric authentication or passcodes, which makes mobile payments a very secure option, even in the long run.
Ten years ago, I had to drive to the electricity office and wait in a long queue just to pay my electric bills. This also meant taking time off work during the day. Mobile payments have made this process obsolete, thankfully.
- Mobile payment technology is constantly being improved and new features are being added all the time, which helps to drive innovation in the industry. For example, today we can make an instant payment by capturing beneficiary information on a QR code sticker, and we can anticipate seeing more of this type of innovation in the coming years.
- We all know that data is king. And any innovation or app is currently focused on providing valuable data about consumers. The case for mobile payments is no different, they provide valuable data about consumer spending habits and specific transactions that are crucial to customizing customer experiences, improving services and even detecting fraud. This will become of even more importance years down the line.
Believe it or not, mobile wallets may soon become portable ATMs. Imagine driving up to a gas station and instead of looking for an ATM, you use your mobile wallet to conduct a person-to-merchant payment and take your cash from the convenience of your car.
- Mobile payments can help streamline the payment process, reducing the time and effort required for users to complete a transaction, but also for businesses, reducing the time and resources they spend on tasks like reconciling cash registers, processing credit card transactions, and handling cash deposits. To date, there is no alternative to this type of convenience for merchants.
- Mobile payments can be a great way to reach underserved populations, such as those who don't have access to traditional financial services. With financial inclusion being a major challenge for most countries around the world, mobile payments have been presenting the solution – and that by itself guarantees continuation of mobile payments over the next decades.
- Last but not least, mobile payments can be easily integrated with other financial services and solutions, making it easier to adapt to technological developments in the future, or even market demands by consumers.
To conclude, the financial industry is constantly evolving, and mobile payments are at the forefront of this change, and will continue to be, if they maintain security, speed and convenience, and sustain increased innovation and accessibility beyond traditional infrastructures.
