23 Feb Mobile wallets and their impact in 2017
The mobile wallet is perhaps the biggest revolution in payments that technology has seen since the ATM. Mobile wallets provide an ease of access that saves users the hassle of carrying around loose cards. Instead, users are able to access all of the functions related to payments via smartphone, smart watch, or tablet.
By guest writer Rachael Everly
Many countries that are implementing mobile wallet services have already benefitted immensely from this tech that facilitates trading online and in physical stores. It is a safe and secure method, trusted by customers worldwide. Those regions with the potential to become more technologically advanced are set to make the Mobile Wallet even bigger than it already is. Countries like India and China have recently jumped on the mobile wallet bandwagon, and are set to take the service to new heights. This will provide mobile wallet companies with more users and increased revenue.
Difference in Services
Mobile wallet companies mainly differ in terms of the range of services they can provide to customers. These differentiations can vary from the performance of the product and services the company provides, to the pricing and charges of the product or service. These criteria of competence will become more vicious once mobile wallets expand their services into other regions. Analysts have also predicted that mobile payment companies will need to grow inorganically by partnering up with other smaller companies of the same kind, or acquiring them completely.
Rising Usage of the Service
In 2017 alone, mobile wallet usage is set to rise by nearly 32%. The digitisation of everything – from money, to shopping, to booking vacations online – is on the rise. The total gross value is expected to amount to USD 1.35 trillion. This is a major step upwards for the mobile wallet, and the pundits predict that the Revised Payment Services Directive (PSD2) will also help to stretch the competition within the European landscape. The established service providers in the region have already set their game for better and more refined services, and are ready to take on new competitors.
A major contribution to the rise of the mobile wallet is the ease of access it has provided app developers. When a new mobile wallet app is designed, the price can range from fairly inexpensive to very high. Ensuring the security and safety of online transactions is the premiere feature that developers aim for, and is the basis on which they can compete with each other. Some of the challenges currently facing developers include the unceasing evolution of mobile features and constant software updates. To cope with these challenges, mobile wallet development will need to prepare better for future changes and work toward continually improving compatibility.
A lot depends upon the contents of the mobile app. User experience and ease of use are both important priorities for all app developers, including developers of mobile wallet apps. App developers typically aim for simple, user-friendly layouts when designing applications. Generally, overloading an app’s features leads to heavier versions, maximising its file size for storage. The user interface of a service also largely depends upon the operating software. Therefore, phone operating systems are always taken into consideration prior to beginning development of the application.
Small Stores with Mobile Wallet
The market is splattered with a huge number of highly competitive and strong players and these players all target the same segment: retail. Retail stores have played an important role in generating profit through the mobile wallet method. This is likely due to the massive boost in stores facilitating customers with mobile payment options over the past year. Mobile payments have helped to simplify and speed up the transactions made in these stores. Moreover, the mobile wallet service has provided a lower cost for the provision of their services compared to the charges incurred for credit or debit cards. The service also records customers’ previous transaction data to keep as a record and help in future purchases. The adoption of mobile wallets in retail is expected to rise in 2017.
Mobile wallets are considered far safer than credit or cash. For this reason, the mobile wallet could definitely overturn the market for debit and / or credit cards, and even eliminate them completely. The mobile wallet is certainly going to have a long-standing term in the coming years. It will greatly impact future small businesses, and transactions will become safer and more reliable. All this technology needs now is to be made more accessible to consumers.
This post was written by guest blogger Rachael Everly – an undergraduate student who loves to write on the topics related to business, finance, and education. For further updates, follow her on Twitter @RachaelEverly