As mobile and smartphone technology adoption continues to grow across the globe, businesses will have to further adapt to fluid market needs. Merchants are increasingly adding revenue streams, particularly in the online retail space. E-commerce payments are one of the most widely used means of transaction today, especially since mobile technology allows for online commerce at nearly any point in time.
That's good news for e-commerce websites, especially since consumers are going to pay from their phones more often going forward.
According to a Visa Europe study, 60 percent of British consumers expect to use their mobile devices to complete some type of transaction at least once a week by 2020. In the next five years, the market is projected to reach 1.2 billion pounds per week. Another 25 percent of Britons estimate they will spend more than 50 pounds each week on a mobile phone by 2020 – a stark increase from the 1 in 12 that do so now.
Maybe the credit card isn't dying after all.
Average mobile spend to grow
While 1 in 4 British consumers expect to spend at least 50 pounds, the average buyer will likely make 27 pounds worth of online payments by 2020. Mobile apps and music are the most commonly bought items on devices today, but Visa also found that consumers are beginning to buy high-value items via smartphones too. In fact, 23 percent of consumers in the U.K. bought electronics this year while 22 percent bought clothing items via m-commerce, industry website Mobile Payments Today said, citing the Visa study.
These figures, while promising, may be leaning on the conservative side. Executive Director for Mobile, Visa Europe Jeremy Nicholds said digital payments are accelerating into the 21st century thanks in part to rapid smartphone growth and adoption rates.
"While we're excited to see consumers saying they expect to triple their weekly spend using mobile payments over the next five years, we … think those numbers could be rather conservative and that the actual adoption rate will be much higher," Nicholds said in a release. "We're witnessing a huge surge in interest from consumers in the UK for faster and more convenient payment methods as mobile and online commerce technologies continue to evolve at pace."
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