turning leather wallets into mobile onesThe Mobile Wallet Market Opens Up
Two new forces are boosting widespread usage of mobile wallets – not just players from technology companies and merchants but also from the financial industry itself.
According to a new Juniper Research study, services like Alipay and WeChat, created by large local online merchants, play a key role in the adoption of mobile payment. In 2017, spending via mobile rose 32% and by the end of the year, purchases made with mobile wallets are expected to exceed $1.35 trillion.
Paying parking with SMS has been a ubiquitous activity in Croatia since 2001. Using a mobile app to check the status of your bank account has become ever-present across EU a decade ago. Using a mobile phone to pay your bills by just taking photo of them is now a standard in SEE. But for the financial industry in China and the US, going mobile means even more.
Large online merchants are offering apps that have transformed mobile phones into a truly ubiquitous payment tool, prompting consumers to exchange their leather wallets for mobile ones. These days trends in mobile payment are set in China and the Far East while the rest of the world catches up.
New players are gaining ground in payment industry fast. Apple Pay, Google Pay, Samsung Pay and all the other "Pays" put the emphasis on acquiring as many consumers as possible, focusing on creating a better customer experience. They offer closer relationship to consumers by giving them a lot of benefits that go beyond payment. This traction is catching attention of the merchants and creating a disruption on the market for card acquiring banks, putting them in a position in which they must make fast decision: to cooperate with new players or not?