U.S. mobile payments market to reach $23 billion in 2016

Mobile Payment

The U.S. market for mobile payments made at the retailer point of sale will increase to $23 billion in 2016, up 54 percent from 2015. Robust growth is projected through 2019 based on the almost certain continued movement toward smartphone usage saturation and an increase over time in the percentage of smartphone users making mobile payments at the point of sale, according to market research publisher Packaged Facts in the report Mobile Payments in the U.S.
Backed by roughly 80 million U.S. account holders, Package Facts views PayPal as a U.S. e-commerce, P2P and mobile payment leader, reports The Wise Marketer. The company leads with a payment agnostic, easy-to-navigate omni-channel mobile payments solution allowing users to access their accounts anytime, anywhere from any Internet connected device. Its mobile payment app runs across all major smartphone platforms, giving it strong device-based reach. Recent innovations include in-app payments, keeping mobile users within the app where they're making the payment instead of sending them to the PayPal site; OneTouch one-click mobile check-in; and a variety of mobile payment options, including photo/location-based mobile check-in, and QR code/PIN. In addition, by weaving social media into the mix, PayPal's Venmo P2P service has attracted a strong niche of Millennials to its application.
Google is poised to continue its gradual, upward mobile payments path. According to Packaged Facts' survey results, usage is neck and neck with Apple Pay, with 8 percent of smartphone users having used Android Pay at the cash register/actual sales location to pay for a transaction in the last 12 months, the percentage reported for Apple Pay.
In its own right, Apple Pay has helped reinvigorate mobile NFC payments, and within another three years Packaged Facts envisions it bringing mobile payments into the mainstream, on the backs of 70 million potential U.S. Apple Pay users. For now, globally, Apple has surpassed 1 billion active devices. By Packaged Facts estimates, almost 30 percent of U.S. adults have an iPhone, giving Apple Pay significant device-based reach. Apple Pay also blends mobile payments with features and benefits beyond payments.

Apple Pay launches into China this week for the Industrial and Commercial Bank of China Ltd. customers, bank representatives said, according to Reuters. The technology giant had previously said the system would launch in China in early 2016, making it Apple Pay’s fifth country as it accelerates development of a planned new revenue stream.

While mobile payment apps are soaring in popularity, but the world’s least developed countries are making almost no progress in the move to eliminate cash and cheque transactions that cost them billions of dollars annually, reports the Financial Times.

The latest digital money index from Citigroup and the Imperial College London — which counts everything that is not cash or cheques as “digital” — reveals a deepening divide between the most and least “digital ready” countries.

“What we found this year is actually pretty stark,” said Citi’s global digital strategy head Sandeep Dave told the Financial Times. “The incipient countries that have a long way to go, they almost showed a zero improvement against 2014 scores [while] the materially ready countries showed the most improvement.”