In a recent report by research firm Forrester, they stated that mobile payments in the U.S. eclipsed $12 billion in 2012 and that they are expected to reach $90 billion by 2017. The conclusions of the report are listed below:
- Mobile payments adoption will be fueled by unprecedented growth in proximity payments. Mobile proximity payments are currently the smallest category within mobile payments, but we expect it to be the fastest growing. Proximity payments will reach $41B, making up nearly half of all mobile payments in 2017. Lower barriers to adoption, increased convenience, and early entrants striving for scale will be important drivers of growth.
- Despite growth in P2P payments, mobile remittances will lag behind. There are several types of mobile remittances, including domestic P2P, cross-border P2P, and bill payment.Mobile remittances will exceed $4B over the next five years but will fail to achieve the scale of mobile proximity payments or mCommerce. Mobile P2P will make up more than 90% of the mobile remittance category but will be hampered by its economics. Future growth will be realized in cross-border remittances, which are ripe for disruption, and in the rapidly evolving area of mobile bill pay.
- Consumers adopt mobile payments when it’s clearly better than the next best alternative. Mobile remote payments, or mCommerce, are currently 90% of the mobile payments category and will continue to grow. mCommerce offers a better alternative to shoppers in certain contexts. The growth of mobile proximity payments, mobile remittances, and mobile remote payments hinges on this reality —each must deliver a better, more convenient option to consumers than the next best payment alternative for a given purchase at a given time.
Mobile device usage is up across the board for any application. Your business should be proactive in providing every opportunity to do business with your customers. Mobile payments and a mobile friendly website are just two ways to start providing that extra service to your customers.
Is your business looking in to mobile payment? Talk with JASE today and let us help you reach all of your customers.
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