Tag: mobile payments pos

At the moment, in terms of merchants and consumers, the company may be considered the leader.

PayPal, already a leader in the online transaction industry, is starting to be considered to be the frontrunner in mobile payments, as well, as it boasts the largest estimated number of merchants and consumers within a “digital wallet” sphere.

Furthermore, the company is aiming to expand this possible lead with the addition of new partnerships.

PayPal has just announced that it is partnering with Discover and NCR in order to further boost its mobile payments offerings. The eBay owned company has been a leader in online purchases for fifteen years, but were able to process more than $14 billion in transactions over tablets and smartphones last year.

The PayPal Here mobile payments service has allowed the company to define itself in this channel.

The success that PayPal has had over mobile payments has been considerable enough that they feel that they are starting to chip into the transaction processing sector, which has long been held by major credit card companies. This has also allowed consumers to start to be able to pay for their purchases in a seamless way, using their cards, but without having to actually carry the plastic.

The PayPal Here mobile payments card reader is also rapidly becoming popular among small businesses. This is because it allows those companies to use any smartphone or table to have a small card reader plugged into its audio jack without the need for large POS equipment or its associated rental or purchase fees.

Now that the Discover partnership has been added to PayPal’s growing set of deals, it will mean that the company will be expanding to 2 million more brand name locations by the end of this year.

That said, one of the mobile payments company’s primary goals is to eliminate the need for a card reader altogether so that the app can be used on consumer smartphones in order to replace the plastic cards. Though this service is available at a few thousand stores already, the extra two million will exponentially grow this opportunity.

According to a new study, mobile transactions will become more prominent in the future.

The results of a recent study, conducted by Javelin Strategy and Research, has found that mobile payments have increased in popularity and that over the course of the next five years, they are likely to be the payment method that grows the fastest compared to all other types of transactions.

More consumers will turn to mobile devices to make in-store purchases. 

While online shopping has gained a lot of attention, researchers who performed the Javelin study discovered that despite the popularity of e-commerce, 93% of the entire U.S. retail dollar volume is made up in brick and mortar retail stores. The study went on to report that it will not be long before mobile payments start to have a profound effect on the retail POS (point-of-sale) market.

Mobile payments are predicted to exceed $5 billion by 2018.

Results of the Javelin study revealed that the POS retail market is developing at an incredible speed. This is due mostly to the ever-increasing popularity of both the mobile payments and e-commerce markets. Consumers of today want a fast and convenient shopping experience and it is believed that digitized transaction methods will allow shoppers to achieve the superior in-store experience they not only crave, but expect.

Although mobile payments have yet to become one of the top payment options among retail shoppers, this is anticipated to change within the next five years. According to the study, by 2018, mobile payments in the U.S. will hit $5.4 billion. That being said, the researchers did also point out that they approximate retail POS purchases on the whole will be worth closer to the $4.2 trillion mark in 2018.

However, despite this much larger overall number, the amount estimated for mobile transactions appears to be nothing short of extraordinary. What’s more, the Javelin Strategy and Research study mentioned that, within five years, mobile payments will surpass all other types of payments in terms of having the biggest compound annual growth rate. Thus, in such a rapidly changing environment that is becoming more and more mobile-friendly, a big change in POS retail market trends is highly likely.