In the early 1600’s, during the Renaissance period, wallets were introduced in the west as means to carry the paper currency. Alien as it may sound, the paper currency too only allowed to purchase a few commodities that traded through “paper currency” as opposed to coins. Spinning a few centuries ahead, welcome to the present… we now haveElectronic Wallets which aremore commonly known as Mobile Wallets!
Who can argue that the last century was probably the era of invention, whereasphilosophers term the present times as Technological Convenience. And what better device to keep you company in these interesting times than your NFC enabled smartphones.
In simple words, mobile wallets allow for users to make payments through their mobile phones. This opens up the possibilities of your favorite jeans completely not having a back pocket, but instead a larger front pocket for your cell phone, that is now your official wallet. Imagine paying for goods, services and utilities through your smart phone, replacing the traditional; yes I say traditionalservices of Credit Cards and Cheques.Make no mistake, the end of credit card is coming, quotes CNN.
CNNfurther elaborates that Wal-Mart amongst one of the dozen retailers that will participate in the new mobile money solutions for consumers.The innovative electronic wallet is soon becoming a common way of paying for a variety of products and services, but do you know where this is headed?Let’s discuss some informative facts about mobile payments whichyou probably did not know:
- Contrary to what most merchants feel, mobile payments offer flexibility to reach customers than ever before. Payments made through mobile adopt the latest technology to track customer shopping trends, life style choices, and analyze performance quickly and easily, says Calpian Commerce.
- The economic cost of purchasing through mobile wallet is lower than the credit card. This opens up the possibilities to everything, everywhere; from restaurants, banks, bus station, parking areas to shopping malls, hair-cuts, coffee shops, and you name it, it’ll be there!
- 70% of shoppers use a smart phone in a retail store during the holidays; 62% access the stores site or app and 37% often access a competitor’s app or site. Interesting really, with the smart NFC chip in place, ForeSee predicts all these users will convert to using Mobile Payments.
- According to Yankee research group, mobile apps and mobile payment systems will continue to grow and the mobile economy will reach 1.121 trillion by the year 2017.
- FactBrowser states 19% of North Americans with annual income $15,000 use their mobile devices to pay at merchant locations and more than 30% expect to do so by 2020.
- Statistastates that 21.90% of mobile payment users useonline wallets.
- According to American Bankers Association, mobile banking has increased to 10% in august 2014from 8% in 2013. 51% of smartphone owners now use mobile banking (2014), whereas previously it was at 48% (2013). 12% of mobile phone owners think they will start using mobile banking in the next couple of months.
- 2013 reveals that56% of people are interested in mobile payments, where 19% do not comply, 14% have used the service in the last 3 months and significantly, 11% would want to try it even at a higher cost.
- Pay-by-phone market is forecast to make up $22 billion in transactions by 2015, up from “practically none” last year, according to research firm Aite Group, CNN.
- BBC reports that the idea of the mobile wallet is gaining popularity across Europe. It is no surprise that in UK, even Motorway tolls accept mobile payments. USA is clearly the leading country in terms of mobile wallet users, and even the middle-east is warming up to the idea with increased users by day!
- Remember, currently there are 1.3 billion people who actively make purchases with their credit cards, debit cards. On the contrary, there are 5 Billion active mobile phone users. Imagine the possibilities and potential of the mobile payment system. It may be no surprise that in the very near future, we WILL be using Mobile Wallets. The question is:do you have a Mobile Wallet?
About the Author:
Umar Jamshed is an IT expert and a former consultant with The World Bank. He is a graduate of Curtin University, Australia. He writes for Inbound.Zone and manages his IT firm.