The growth in the use of mobile devices like smartphones and tablets has dramatically increased. Similarly the growth in mobile commerce is greatly outpacing that of e-commerce. Consumers are using mobile where it is integrating deeply into their lives. It’s not surprising this revolution is changing the way people pay for goods and services, it’s coming a point where people will no longer put their hand in their pocket but simply point their finger. A view of stats to support this; globally, mobile payments are expected to grow to $720 billion by 2017, almost a 5 fold increase in as many years.
Mobile, getting in there
As technology evolves and partnerships occur between industry players the use of mobile will become the norm for payment, putting pressure on traditional credit and debit card transactions especially at point of sale (POS). Looking at POS in the retail setting, how quickly this will occur will largely depend on how efficient the integration piece will happen as retailers try to make sense of the various propositions that emerge and try to establish the return on investment for each. The likelihood here is that retailers will adopt the most widely used solution in the market to stay up to date. However, as Amazon realised of late after pulling their wallet offering while in beta, the mobile payments proposition must deliver a real advantage over current payment means. One might ask, is replacing the act of tapping a card on a terminal with tapping a mobile phone that big a change? It will be as people’s lives reside on their phones.
Industry the Enabler
In Europe, payments are affected by SEPA regulations. While regulation brings challenges, it does harmonise the payment landscape and sets industry standards to be adopted by all market players. This brings benefit in the longer term as it allows businesses plan for the future and rely on the emerging technology and trends that affect the way they operate. In the absence of standards and sight of future change businesses can find it difficult to invest in technology partly for fear of spending incorrectly. As part of the Payment Services Directive regulation businesses, through engaging the correct expertise, can now embrace change and investment in technology in the knowledge that they’re doing so being well informed.
Benefits of Mobile Payments
So, what is this mobile proposition? In short:
- Reduced transaction fees
- Improves customer engagement, customer retention
- Convenience to payer and payee
- Reduction in paper use (e-invoicing, e-receipts, no cheques)
- Staying relevant, swimming with the current
- Data capture, value chain awareness
Retail POS gets much of the focus being the interesting space given the level of consumer interaction. However, mobile payments are equally applicable in the traditional or off-line world. Consumers purchasing on-line are not asked to sign paperwork, nor do they receive paper based invoices or pay by cheque. Offline businesses can also send out invoices electronically and expect to be paid electronically, via mobile payments. The key for a business is employing a solution that is seamless to the end user while helping the reconciliation piece, it just needs to make sense on all levels, simple really.
By connecting the seller with the payer through a shared digital platform Debapay delivers a solution that enables mobile payments on the payer side while empowering the seller to communicate invoices to their customers electronically. If you are a business, or any entity looking to connect with people or businesses that pay you, please feel free to contact us to allow us explain how we can help with this process.