What's Next for Mobile Payments?

News

August 23, 2018


Issue 30: What's Next for Mobile Payments?


When it comes to mobile payments innovation, the opportunities are endless. While most merchants have recognized that eCommerce is their bread and butter, they are beginning to realize that a good mobile payment strategy is crucial to their success.


Why is this occurring?
Adoption of mobile payments has taken longer than anticipated. Therefore, merchants such as Amazon have expanded their networks to give consumers the best payment option of choice. With the integration of Alexa and Amazon Pay, consumers have a one-stop shop without having to go through a mobile payment app from another provider. This directly influences how, when and where consumers now shop. The new mindset: Amazon, not Apple Pay.


What about the product search process?
Google is consistently expanding its options to help consumers find the products they want, and allowing them to pay how they want. As a viable rival to Alexa, Google offers a way to find products and pay with Google Pay. Although Facebook has tried to compete in this niche, they fall behind in contextual opportunities with customers.

As consumers and merchants move further into the digital space, expectations continue to rise. Consumers want to be able to use the same payment methods in every space, on any device they choose. This means financial establishments must think globally and consider the scale on which they operate. Merchants must find ways to partner together to offer payment methods that can be used across multiple channels so the consumer experience is convenient and easy.

Another option on the horizon: remote payments. Because the digital wallet has not been adopted with great fanfare, consumers and merchants are starting to look at the cloud as a viable payment option. Remote payments can help drive more incremental spend and frequency for merchants, but this technology needs further development as it's currently causing friction.

Innovation will happen, but not quite at the pace many first anticipated. Gaining consumer trust and creating global accessibility are big factors for adoption. 2018 will continue to double down on payments technology to fuel the financial ecosystem. There is a huge opportunity here for power brokers and merchants.


Will faster payments get faster?
Here lies an opportunity for merchants and payment providers to think smarter. While fast is good, it must be done right. Banks must build networks that support this. Network debit rails and ACH are faster than ever, providing same day, real-time transactions. This works well for small businesses who need that capital to continue competing with larger organizations.

With so many apps, the new buzzword is success. Anyone can have an app -- it's how the app operates that makes the difference. With voice technology fueling a new wave of buying and purchasing, this mindset must shift to merchants and payment providers. According to App Annie data, the average person has about 30 apps they frequently use, with app downloads almost at zero. This shows that once customers find apps that work well, they are loyal. These app developers must capitalize on that loyalty and integrate the functions that will enhance the experience.

Payment methods and the entire customer experience are the new focus of consumer mobile payments. Companies and merchants in this space must adapt or lose a great opportunity.