Digital presence has caused the payment industry to evolve rapidly to maintain current with technology and trends. Payments are no longer simple one-on-one transactions, as the global payment processing ecosystem involves gateways, card networks, processors, acquirers and more. One of the most prominent trends to come forward is the use of mobile wallets. According to analysts, mobile wallets will be the single biggest transformation in payment processing if they continue to take off as expected.
What are Mobile Wallets?
Simply put, a mobile wallet uses the convenience of a mobile phone, tablet or smart watch, to carry debit and credit cards in digital form. Apple released their form of mobile wallet, Apple Pay, in 2014, and they were relatively alone at the top of the market. However, starting in 2015, Google and Samsung joined in on the trend, releasing their own mobile wallets. Companies like Walmart and Starbucks have created their own mobile wallet apps for use in their specific stores. Meanwhile, banking companies such as Chase and Capital One Wallet can be used at any retailer that accepts mobile payments. According to Business Insider’s BI Intelligence research service, in-store mobile payment is expected to grow in volume from $75 billion in 2015 to $503 billion in 2020.
Mobile wallet transactions offer vast amounts of information that can be used as valuable insight into your customers’ purchasing interests and trends. The data collected can improve the shopping experience for both retailer and consumer. Mobile payments take very little time, and the speed of the transaction can increase foot traffic which leads to more sales.
As a merchant, consider including mobile transactions as accepted forms of payment to stay on top of the booming trend. By updating the NFC at in-store businesses, merchants can accept Apple Pay, Android Pay and Samsung Pay.