Thanks to the proliferation of smartphones, access to cheap internet, and exponential growth in mobile applications’ availability, mobile payments have emerged as one of the most viable modes of transactions. Mobile payments are quick, secure, convenient, and contactless and hence are used widely by people globally.
Let us dive deeper into mobile payments and how it has helped grow the eCommerce industry.
The ongoing pandemic has had a tremendous impact on the growth of mobile payments. This is evident from a survey that revealed that 78% of global consumers admitted that they would explore alternate modes of contactless payment due to the risks arising from the pandemic. It is predicted that by 2024, mobile payments will account for one-third of all consumer payments.
Mobile payments have disrupted the way businesses get paid. With the continuous use of mobile devices by consumers on the rise, mobile payment has also increased. Mobile payments include:
- Mobile Transfers
- Mobile Wallets
- Mobile point-of-sales
- Payment through SMS
- Mobile Web Payments
- Browser-based Mobile Payments
- In-app Mobile payments
The following are some mobile payment trends that are accelerating e-commerce:
Mobile commerce is dominating the market share of global e-commerce. 79% of all smartphone users have shopped at least once in the past six months using their mobile device. The users either directly use the shopping apps or shop on their web browsers. Google Pay has been the preferred mobile payment platform for most Indian users.
DISAPPEARANCE OF PHYSICAL CARDS
More and more people, and businesses, are transacting online now, using mobile payment mechanisms. That’s billions of monies being traded and transacted across the world without people even having to meet. It’s simply too convenient to make payments electronically, particularly with the internet, and the fact that e-commerce merchants and customers can now be hundreds or thousands of miles away. Practically, users find mobile payments a much better option than physical cards.
QR CODE PAYMENTS
QR Code or Quick Response Code is a type of matrix barcode that is used in many contexts. When a user scans a QR Code, the barcode matrix is decoded on the user’s smartphone and converted into some characters. The user will then get all the payment details on their mobile screen. The user can start the payment after checking all the details.
Simply, omnichannel means selling your product through multiple channels. An e-commerce website, a mobile app, and a physical store can all together lead to an omnichannel experience. Be it online or offline; businesses that have successfully integrated mobile payments into their payment infrastructure have gained a competitive advantage in the market.
Social shopping has now emerged as a new way for e-commerce shops to sell their products to customers. The customers discover a variety of new products on social media, read reviews of other buyers, and make in-app purchases. There is no doubt why social shopping is gaining popularity rapidly.
SOUND WAVES-BASED PAYMENTS
One of the rising mobile payment trends is sound waves-based payments. Sound waves-based payment is a mobile payment solution to the COVID-19 situation because it helps us make contactless payments. Sound waves are sent to the user’s mobile device to transmit the payment details. The user’s phone detects the waves and converts the data into analogue signals to easily transact the payment. The sound waves contain encrypted payment details which allow the user to process the transaction.
Mobile payments will continue to play a significant role in the e-commerce industry in the near future. The e-commerce store owners will keep integrating mobile wallets with their app to allow the users to make purchases using their preferred payment method or their preferred mobile wallet. All e-commerce store owners will have to keep a close eye on the emerging mobile commerce trends and plan accordingly.
What changing trends will we get to see now? Will facial recognition in stores now be able to connect to the customer shopping data online? Only time will tell us! Until then, it’s best to make full use of mobile payments!