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Mobile Payments Expected to Triple by 2016

Dec 14, 2015
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Posted by: Marketing
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Category: General
People are increasingly turning to mobile payment methods, so much so that the number of mobile payments in the U.S. is set to triple in just one year.
mobile payments

You don’t have to be an expert in the payments industry to notice how big mobile payments are becoming. In fact, if you’ve been shopping this holiday season, or have a new iPhone or Samsung Galaxy, or have watched TV or spent time on social media, you’ve likely seen something about mobile devices offering easier ways to pay. People are turning to mobile payment methods more and more each day, especially during big shopping seasons like this one. But here’s something you probably didn’t know—the number of mobile payments in the U.S. is set to triple in just one year.

Breakthrough For Mobile Payments

eMarketer reports that the transaction value of mobile payments in the United States will reach $8.7 billion this year, and will triple to $27.05 billion next year. If these projections are true, it will be because of two things:

  • An increased amount of shoppers using their mobile device to pay.
  • An increase in transaction value.
In a nutshell, more people will be paying with their phones for higher-priced items, which will cause the dramatic jump in total value.

However, there are other things to consider when looking at the massive jump ahead. Mobile payments just became widely available with the most recent generation of smartphones. As consumers discard their old devices and upgrade to newer ones, more people will have the ability to pay with their phones.

Additionally, to compete with services like Apple Pay and Samsung Pay, retailers are stepping into the mobile payments space as well—Starbucks has had a mobile payment option for a few years now, but Walmart just recently launched their own mobile payment app. A mixture of these additional factors will also affect the great leap for mobile payments.

The Impact of Mobile on the Payments Industry

It has been predicted for many years that mobile will change the face of the payments world to some degree. While desktop-based transactions and physical swipe terminal transactions still reign supreme, the transaction value from those two methods aren’t growing nearly as fast as mobile. There may come a day in the not-so-distant future were paying with your device is the preferred method.

So what does this mean for merchants? Businesses in both the retail and e-commerce space should be catering to mobile payments as best they can. E-Commerce merchants can start by streamlining their checkout process and equipping their site with responsive design, so mobile users shopping online have a good experience. Retailers should look into keeping their POS systems up to date, including near-field communication pay terminals to facilitate payments from mobile devices. If you play into the growing trend, the only thing you can do is benefit from it.

About the Author

Dylan Freni is a copywriter at Instabill. He writes articles for the company’s nine websites, including three articles per week for the Instabill blog. Frequent topics include merchant services, payments industry news, e-commerce tips, and merchant account how-tos.

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