We all know that mobile payments have grown in importance over the recent years. It’s no surprise, then, that 2017 has been a kind of mobile payments renaissance. With this growth spreading like wildfire, it’s worth looking at some of the key factors that have led to the mobile boom and how businesses, big and small, can continue to adapt to the demands of an increasingly mobile-centric market.
The Biggest Factor: Millennials
At more than 77 million, millennials now make up approximately one-fourth of the US population. To put that into context, millennials now outnumber the Baby Boomers and are triple the size of Gen X. Millennials also wield $1.3 trillion of annual US spending power. Because of their sheer size, millennials are arguably the most influential group across all areas of the modern market. Millennials are also devout mobile-tech users, with more than 85% of the millennial bracket owning smart phones which they use on average 45 times per day.
It’s no shock, then, that mobile tech in all arenas continues to boom. Which brings us to…
Mobile Proliferation
As mobile technology has exploded, so has its acceptance as a viable payment option. According to Visa (and a helpful Visa infographic you can check out here) the number of mobile transactions has increased nine-fold since 2010 with no sign of slowing down. They currently estimate that by 2020 mobile payment will be the preferred payment method for Americans…and that’s only three years away!
Looking at the last year alone is extremely telling about the future of mobile pay. Samsung has begun expanding its mobile pay technology to work with low- to mid-range smart phones, meaning mobile payment will continue to be more widely accessible across all demographics. Apple now enables consumers to send payments through iMessage, meaning users can message US dollars, euros, pounds, and Bitcoin to anyone in their contact list as easily as they send a text. Apple is also responsible for the return of Bluetooth technology with their elimination of the headphone jack on the latest iPhone. As users begin to increase their Bluetooth usage on a daily basis it will become more and more of an option in all areas, including a payments setting.
Sharing and Convenience Driven Market
Another key factor driving the mobile payments boom is the rise of on-demand services. Consumers are less willing to wait and more willing to pay for speed and convenience than ever before. From order-ahead options offered by the likes of Starbucks’ and Dunkin Donuts’ apps to on-demand ride options like Uber and Lyft, on-demand ordering is becoming more expected in all consumer areas. This convenience factor has become especially essential in the food industry.
Lux Research found that consumers are willing to pay 11% more for added convenience, which explains the rise of grocery delivery and meal-prep kits, as well as the boom in food ordering and delivery services like Grubhub and UberEATS.
The Bottom Line?
All of these developments rely on fast, secure, and effective mobile payment options. In today’s rapidly changing, on-demand and convenience-focused economy, mobile payment options are essential to keeping your business moving forward. That’s where we come in. With fresh options for all areas of payment processing, we here at Pineapple are all about making sure your business is ready for whatever the mobile market throws at you! Want to learn more about how we can get you ready to conquer the mobile world? Click here!