Payment Industry Trends: How do Consumers Expect to Pay in 2015?
How do consumers expect to pay in 2015?
A lot has been said about the new technology surrounding the payment industry. As digital forms of communication and mobile devices become more prevalent in everyday consumer life, so too will the means by which individuals pay for goods and services.
As technology continues to evolve, it's likely the demands of the everyday customer will as well. That said, merchants need to provide consumers with current methods of payment. A recent Cushman and Wakefield® study forecasts 2015 will be the year of the consumer, especially given the heightened importance in providing quality service as a means of generating recurring revenue (1). According to the firm's research, consumers are the single biggest contributor to gross domestic product, with domestic customer spending accounting for 68 percent.
Since June 2009, consumer spending has increased 2.3 percent annually to a total of nearly 12 percent. (1)
New means of payment
Mobile payments will likely play a major role in the future of cutting-edge means of transactions, especially since consumerization of portable devices has accelerated in recent years. Mcommerce in the U.S. arguably has the greatest potential to grow in the coming years, given the existing technological infrastructure and its ability to scale. Monitise Insights ®, an online transaction firm, suggests the U.S., Singapore and Canada are the three best markets prepared for near-ubiquitous mobile payment adoption (2).
Separate data provided by online statistics portal Statista® shows exponential growth in m-commerce over the next three years, with transaction volume projected to reach more than $721 billion by 2017 (3).
New contactless transaction methods will likely take a firm foothold in the payment processing industry as well. Apple Pay® and mobile wallets in particular are well-positioned to make an impact on consumers as the public is continually searching for a reliable, secure and streamlined means of paying for products and services. Mobile will likely overlap with both in-store payment processing technology, as well as e-commerce capabilities. Software provider HubSpot® feels businesses will become device agnostic, meaning they will strive to create a seamless experience for consumers no matter where they are, or what they are using to complete a transaction (4).
While mobile payments are poised to obtain a larger market share of the payment industry in 2015, merchants must keep an eye on the latest trends and consumer sentiment if they want to remain brand relevant. Of course, security is a major aspect of the current payment processing sector, and it's importance will likely grow in the coming years - especially as new and improved means of transactions are developed.
1. Cushman and Wakefield, Nov. 17, 2014
2. Mobile Insights, 2014
3. Statista, 2014
4. HubSpot, Sept. 14, 2014
Cushman and Wakefield®, Monitise Insights®, Statista®, and HubSpot® are registered or nonregistered marks belonging to their respective owners who are unaffiliated with and do not endorse or sponsor Vantiv Integrated Payments, LLC.
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