A new Mobile Wallet Market Research Report recently published by Allied Market Research estimates that more than 70% of smartphone users are willing to adopt mobile payment modes and 15% have already completed the adoption. The mobile wallet system allows consumers to pay by smartphone, tablet or other app-enabled mobile device while on-the-go from any location, at anytime.
The study indicates the mobile wallet market is witnessing growth globally with increasing adoption of mobile payment services. According to the study, the global mobile wallet market is on target to reach $5.25 trillion in 2020, with a compound annual growth rate of 127 percent over the next seven years alone.
As per the study, increasing smartphone penetration and growing security are expected to drive the mobile wallet market, as will growing awareness about mobile wallets and their applications. Mobile payment services have the potential to transform the shopping and payment experience. A key growth driver is finding new ways to provide consumers with greater payment convenience and an improved customer experience.
It can also be a real game-changer for merchants and financial institutions by offering a new channel in which to connect to their customers:
- Merchants can use their existing customer loyalty, management, and marketing strategies in innovative ways. As loyalty offers become easier to transmit and redeem, customer engagement can be increased.
- Financial institutions can build on the foundation of trust already established with their customers by providing educational information on the mobile wallet’s merits. Benefits such as convenience and security can help encourage consumer adoption.
- The mobile connection makes it possible for merchants and financial institutions to easily share promotional offers with their customers with targeted information more relevant to their interests and therefore more useful.
- The ease with which information can be transmitted via mobile devices adds an entirely new dimension to retail sales to improve their business presence. Location-aware mobile wallet applications provide special opportunities and competitive challenges to marketers by giving them a direct consumer connection for marketing in real time.
- Additionally, as unique shopping preferences and personal needs are identified, this data can be applied to make highly personalized customer communications.
The study shows at the present time many consumers still prefer cash or credit card payment due to their concerns related to security and because mobile wallet technology is in its early stages. As misconceptions are addressed and security measures advance, consumers should become less reluctant to accept the mobile wallet system and embrace the increased benefits it provides.
About the Author:
Patty Whelan is a seasoned copywriter with significant experience producing original content in all facets of online and offline marketing communications, with specialties in SEO copy writing. She currently writes on diverse topics regarding the electronic payment processing industry and small businesses for TransFirst.