According to the latest research from ACIWORLDWIDE there should be about 2,5 billion people utilizing mobile devices as payment tools by the year 2015. That’s about 40% of the total mobile market and not restricted to smartphones. If anybody thinks that the credit card had a major effect on industries when it was introduced 60 years ago, specifically retail, then mobile payments is already shaping up to be an exploding sun.
And just looking at all the sharks circling the mobile payment bait it is seriously turning into a feeding frenzy. Mobile Operators, Silicon Valley big shots, small shots and also shots, Banks, Retail institutions, hardware manufacturers, software developers. They are all there, developing sparkly digital payment services. Interesting however is, with the simplification of the payment world is also being disrupted where there is a slew of new players with clout that had no banking or payment intentions even 3 years ago. Who would have thought that STARBUCKS with its purchase of SQUARE could get the jump on VISA or MASTERCARD. Its a bit like a Star Wars movie where the student becomes the master. In the case of STARBUCKS its the service buyer actually out innovating the industry. I bet you that the IT department in STARBUCKS is tightly integrated into the business development, sales and marketing department.
But this world of 2015 (which incidentally is nearly as close to us now as the introduction of the first iPad in 2010) is going to be interesting when it comes to mobile payments.
The effect that it will have on retail can be equated to the effect the WWW had on the Internet
According to ACIWORLDWIDE the Mobile Payment consumer will be divided into 5 primary payment groups.
- Bank App/Browser based payments
- Mobile Wallet/NFC based payments
- P2P for Banked Consumers
- P2P for un-Banked Consumers
- Retailer Payment Apps
Each of the above methods have its own levels of process and methodology which happens to be highly technical and can get a bunch of engineers to geek out over coffee and is currently employing loads of ICT Consultants.
But what of the consumers then?
These payment methodologies turn the whole customer journey on its head from the most minute level.
According to PWC 22% of all first time online transactions done by the ever increasing digital consumer has been done in the last 12 months!
If there ever was a hockey stick curve to watch surely this must the one. The mother of all hockey stick curves! And pity the organizations not ready for this. The organisations most at risk are the ones still believing that IT and Digital strategies are some that needs to be in the dark caves of the IT Department. The sooner these strategies become part of the general commerce strategy the better!
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