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More Companies Embrace Mobile Payments, but is it a Good Thing?

Dec 02, 2019 MicroBilt News

More Companies Embrace Mobile Payments, but is it a Good Thing?

Mobile payments continue to be on the rise as people find the convenience of ordering and buying items via mobile devices more convenient than standing in long lines. In fact, recent expectations are that in 2020 alone, more than one billion people will make actual in-store purchases through mobile payments.

Proximity mobile payments are already a major success in China and throughout the Asia-Pacific area where nearly 36.3 percent of smartphone users have made purchases thus far in 2019 via mobile payments. Some of the reason for the rise in popularity is the acceptance and promotion of mobile payments by industry heavy hitters like Samsung, Google, and Apple; though other countries are developing their own versions of proximity mobile payment “wallets,” including India, Sweden, Australia, Japan, Norway, United Kingdom, South Korea, Denmark, and Latin America.

Still not convinced?

According to Statista, 38 percent of U.S. online shoppers believe mobile payments are the most efficient of the available payment methods and 29 percent of U.S. shoppers wish they could always pay for purchases with their smartphones.

What is the Concern with Mobile Payments?

In a word – security. It’s weighing heavily on everyone’s minds when it comes to mobile payments. In fact, 70 percent of the U.S. population acknowledges their concerns about security as a substantial obstacle preventing them from fully embracing mobile payments, according to the Pew Charitable Trust. Despite this distrust or concern, 46 percent of consumers in the U.S. have made mobile purchases.

As far as age demographics go, Millennials, Gen Z, and Gen X are most likely to make mobile payments while Baby Boomers continue to have a healthy suspicion of mobile apps and digital wallets as huge security risks that place their retirement incomes and financial wellbeing in jeopardy. Even so, varying reports claim that at least 27 percent of Baby Boomers report an interest or attraction to the idea of making payments via mobile apps.

With the rise of blockchain, there are even more considerations to keep in mind when it comes to digital wallets and protecting user information, particularly financial information on the web. Samsung Pay is already paving the way for cryptocurrency inclusion in the mobile payment marketplace. It can quickly become too much for small businesses to wrap their heads around, which is why it is important to choose vital partners to aid your business in the payment services process.

MicroBilt is an industry leader when it comes to payment services, fraud prevention, and more. We can help you reduce fees and expenses while improving the rate at which debts are collected for your business through our payment solutions. Contact us today to learn more about our available solutions and how you can use them to grow your business as the way people pay evolves once again.