We've talked about it in the past: How fast are mobile payments coming? Every month more and more stories and voices contribute to the growing belief that the age of digital mobile payments is on the way, and this month so far has been no different. The debate has shifted however. It's no longer a question of if mobile payments are coming but a question of when. Here's a roundup of some of the most interesting figures and stories to emerge this month. First and foremost, the potential size of the market is undoubtedly huge. Globally there are 5 billion mobile phone accounts. Another report predicts by 2017, there will be 1.5 billion smartphones in circulation. The sheer amount of people armed with devices that allow for them to make payments is staggering.
Mobile payments are taking off in all manner of different ways all over the globe. Africa leads the way, where 52 per cent of all mobile money sessions take place. Its been embraced in Africa, because there is far less infrastructure and vested interest in previous forms of banking and payments. On the other hand, in places like the UK: the resistance to change is far greater from both consumers stuck in their ways and providers who are set to miss out.
"It's in the Far East and China in particular where the biggest potential for mobile payments really lies however"
In Europe, mobile payments are making their biggest impact in the form of ticketing for events and travel. No more 'I forgot the tickets' incidents, when it’s all stored on your phone. And in the US mobile payments have doubled in the last year, now accounting for 17 per cent of transactions. It's in the Far East and China in particular where the biggest potential for mobile payments really lies however.
In the last year in China, mobile payments grew 707 per cent, and some 125 million people are now using mobile payments in the country. By 2019, China and the Far East are predicted to have the largest proportion of mobile payments users. This shows that the global market is already massive and it’s predicted by the end of this year $507bn worth of transactions will have taken place in 2014. The numbers are already truly staggering.
And just like the current dominating payment methods in the developed world, there is plenty of room in this market for a lot of competing players. Just last week Amazon have thrown their hat into the ring - offering cheap peripherals for the iPad and iPhone to enable them to accept NFC and card payments.
Inevitably, with a global market of this size, a lot of parties are going to want a piece of the action. Of course, at Ensygnia we expect to capture a sizable portion ourselves. And we're ideally placed to do that. One article this week, by WARC.com, asserted that mobile payments are inevitable. It’s just that concerns about security need to be overcome, just like they had to be overcome when cards were first introduced.
"We can complete payments without the risk of usernames or passwords or the need to actually share payment details between consumer and merchant"
Ensygnia is a company that puts security first. In fact payments is just one aspect of what we do with our secure simple platform for completing mobile transactions. We can complete payments without the risk of usernames or passwords or the need to actually share payment details between consumer and merchant. We put identity and security back in your pocket.
Ensygnia is determined to gain the trust and confidence of users in our platform that can offer so much. Simple secure and fast interactions with a mobile phone, that doesn't require new hardware what so ever. Just a phone with a camera and a code to interact with, whether that be on a screen or printed material.
By Matthew Taylor 27th August 2014
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