Contactless payment market services have also been widely known as digital wallets, have enabled consumers transact securely over different devices. With technology catching up, leading as well as new entrants in the market are floating offers to attract customers to their services. Mobile commerce has led to a definitive shift in the way buying and selling is conducted. From the streets, now the days are of mobile devices to lead the show. Consumers are using the mobile platform to not only check products, but also buy the same without worrying about visiting a store.
In the United States, Macdonald’s, Starbucks, Subway, Whole Foods, Walgreen’s, Macy’s and many other leading businesses have opted contactless payment services. PayPal and Google Wallet have given a seamless and a perfect alternative to make payments securely. With giants such as Apple and Google, the contactless payment business landscape would witness unprecedented growth over the years.
Apple has been known for its security features. Apple has gone a step ahead to make the transactions seamless and at the same time secure with fingerprint ID technology. The technology offered by Apple is almost similar to European chip-and-pin car system. With the adoption of latest technology, the Apple’s platform would be in a position to thwart potential threats that may arise in the course of making a payment.
Contactless payment market and limitations:
The cost of initial installation is relatively higher over traditional methods. Also, the government has set some limitations on the number of transactions per day. Additionally, the risk associated with the transactions such as spyware, malware, and virus attacks are some of the major factors that limit the growth of the market considerably.
Adding to the aforementioned factors, there are some other factors that limit the market growth. The awareness about the mode of payment, especially in the Asian and Latin American regions has a limited the market growth in these regions.
Contactless Payment Market: technologies bringing strategic edge
Despite challenges, many leading players have contributed significantly to the market growth, especially in the leading regions such as North America and Europe. Some of the significant offerings are from Master Card, which offers paying with your face, paying with a ring, etc. Apple, despite being the leading market player, has limited its offering to fingerprint technology.
Contactless Payment Market: From now on
The debate about the prominence and widespread adoption of contactless payment remains. Some believe it’s the technology of the tomorrow and would change the landscape of transactions; however, there are some who believe that the technology would not catch up as expected. Despite the views, the time will tell about the impact of the technology. Countries such as India, and many other fast emerging economies have geared towards the adoption of contactless payment market. Despite lower adoption rate, it can still be safely assumed that, with awareness about the benefits, the adoption of the technology in emerging economies would be unprecedented.
Mobile Commerce Market Trends:
Mobile usage has witnessed unprecedented growth over the last few years. More than 1.2 billion people have access to mobile technology, today. Internet is accessed with the help of the mobile phones by vast majority of the population in emerged economies. Mobile commerce would witness seamless adoption due to easy accessibility to the internet, which would help people to buy more over their phones. Almost every industry and segment is trying to part take in the bubble and take full advantage of the prevailing opportunity.
Shopping has been seamless with mobile commerce. Mobile shopping is simple and can be practically conducted from anywhere. This seamless platform called “Mobile Commerce” has made is almost irresistible for both men and women alike to shop more and spend more time to check products on popular platforms such as Amazon.
The Mobile technology has not only proven to be a powerful medium to the business landscape, it also has given rise to many more advanced technologies, and one such is Near Field communications.
Finally, some numbers would truly add to the above thoughts. The number of people using Apple Pay, Samsung Pay, and Android Pay would exceed to over 100 million right in this year, suggests a top research firm. Companies are working on patents to gain market share in the wide opportunity landscape of Mobile payment technology. Companies such as Apple, Samsung and Google have increased their market share by about 20 percent in 2016 when it comes to mobile contactless payment users’ base. A significant rise has been witnessed in the Apple Pay user base, which has almost doubled year on year. It is anticipated that the Apple Pay user base may hit to over 86 million during this year. Apple would remain as a leading market player in the contactless payment market space.