As per the recent analytical trends, the usage of the mobile payments is significantly increasing at a drastic pace as compared to its usage 5 years back. Talking in terms of literal figures and numbers, the growth rate is astonishingly high.
A closer view through the analysis can reveal more over the economic benefits a business can gain if tapped rightly leveraging m-payments:
Many have started making transactions through their mobile phones, most probably by purchasing apps or digital devices. Parks Associates data from Q1 2014 shows that 10% of smartphone owners paid to download an app in the 30 days prior to the survey and 17% paid to purchase digital content like a song, movie or e-book; these rates are even higher among tablet owners. As consumers get more comfortable with the technology, see consumer value in it and gain confidence that it is a secure option, they likely will reach for their digital wallets more often. A Gartner report released last June forecasts the mobile payments market to be worth $721 billion, with more than 450 million users by 2017. Read more…
For the developers, it is important to gauge on the above-mentioned information, and understand the process of monetization and reap the targeted benefits.
The picture represents an interconnection between getting users, their engagement and retention and thereby monetizing funds and virality of social media reach.
Moving on, there are two categories of mobile payments as under:
E-commerce through apps:
There are many choices for mobile e-commerce viz. app stores, telephone carriers, card networks and so forth. Card networks are usually employed to gather funds for services like food, hospitality or transportation, whereas app stores and carrier billing are generally used for subscriptions or upgrades.
A recent study reveals that there are 6.8 billion mobile phone accounts around the world as compared with 3.5 billion people who have bank accounts. These are facts that prove the growth of m-payments.
The developers would definitely want to retain the increasing users. The payment services described above have individual fee structures, which may impact the average proceeds to the developer. Besides, they also consist of various levels of consumer friction in facilitating payment details and ending the purchase, which in turn may affect gross sales. But the inter-app space with improved trust and clarity in the transaction process could be helpful trade-offs for any hassle that consumers undergo.
A majority of the credit transactions still happen in person, due to restrictive reach. Therefore, app-based payments fall into three main categories: 1) smartphone solutions that combine an app with a card reader and merchant account; 2) point-of-sale solutions like that combine a full-blown POS app with a card reader and tablet; and 3) developer platforms like CardFlight and Card.io that combine software development kits with a card reader and a payment gateway.
Retailers who wish to be more flexible in designing the product experience must take into consideration developer platforms, which smoothen the acceptance of credit in person within an app. The platforms are great for vertical app developers and companies building their own POS solutions and providers comprise of CardFlight and Card.io
Hence, if developers and providers work hand-in-hand on above mentioned points, then mobile payments have a fantastic future.