Last updated: 07 July 2017
Mobile payments are here to stay. According to Future Market Insights by 2020 over $2.8 trillion mobile payment transactions will happen annually, which equates to roughly a 39% increase.
New apps and solutions are popping up on a regular basis. To date over 150 have been launched or piloted worldwide. Some are incredibly successful, while others crash and burn.
Either way, with companies like Domino’s Pizza Group showing that people are ordering more pizzas through mobile than any other device, ignoring mobile commerce and mobile payments isn’t a viable option.
There are many things which must be considered to maximize your chances of success, as we discuss in more detail in our Digital Payments Go Mobile report. First and foremost you must look at the motivations and expectations of the two main stakeholders; consumers and businesses. We’ve broken down how we see each audience will evaluate the success of a mobile payment solution.
Consumer:End-users expect a new payment service to incorporate the following qualities:
- Security: keeping money protected from fraudsters
- Reliability: Making sure that the payment service works as expected, every time
- Rewards: they want to know there are clear advantages to using the payment solution
- Simplicity: Providing a seamless enrollment and making everyday use of payment
- Services: The value-added benefits beyond payments that enhance the shopping experience before and after payment
Business:The business benefit and viability of developing a new payment solution is typically evaluated by organizations based on the following criteria:
- Liabilities: Understanding and mitigating the potential risks of a payment solution
- Value-add: Identifying how services can be differentiated from the competition
- User adoption: Ensuring a simple customer journey, both for enrolment and everyday usage
- Brand impact: How does digital payment expand the core business?
- Go-to-market path: Which deployment method will maximize the reach of the service to users?
Meeting both consumer and your business’ expectations can be tricky, but the above should give you a good indication of how to approach mobile payments.
I’d be interested to know if there’s anything that you, as either a consumer or business, take into consideration when choosing and using mobile payment solutions. Let me know in the comments section below or online @Gemalto.