New study highlights the potential decline of debit and credit cards
Experian, a leading information services and credit organization, has predicted that there will be a major shift in commerce in the coming years. The company has released a new study that suggests that mobile payments will be in wider use than debit and credit cards by 2020. Mobile commerce has been gaining momentum over the past few years, powered by the aggressive adoption of smartphones and other devices in prominent markets.
Survey shows that a growing number of consumers are showing interest in mobile transactions
According to the study, mobile payments are growing particularly quickly in the United Kingdom. The study includes results from a recent survey that Experian held, showing that one in three respondents believe that they will be using mobile payments more than other forms of commerce in the coming years. Nearly half of the respondents noted that they were ready to fully embrace mobile commerce systems that made use of biometric technology. This technology uses biologic information, such as a fingerprint, to protect mobile devices and transactions.
Credit cards and cash are losing their luster among consumers
The survey also showed that 40% of respondents believe in the decline of credit cards, with 70% believing in the declining use of cash. Mobile payments are seen as very convenient for consumers that have begun to base much of their lives on their mobile devices. New payment systems allow consumers to make purchases using nothing more than their smartphones, and retailers are embracing mobile commerce in order to better engage these consumers.
Security remains a major issue for the mobile commerce space
While mobile payments are expected to become more prominent in the coming years, there are still many challenges facing the mobile commerce space. One of these challenges has to do with security. Several companies that support mobile transactions have recently been targeted by malicious groups that want to exploit the financial information of consumers. Without adequate security measures, the growth of mobile commerce may lose steam.
UK mobile payments spark innovation and the founding of new companies
The United Kingdom is emerging as a hub for innovation in the world of mobile payments. The country boasts of high penetration when it comes to mobile technology, with a massive number of consumers having access to smartphones and tablets. Several of the country’s largest retailers, including Tesco, have begun embracing mobile payments very aggressively, making mobile commerce much more popular among British consumers. The growing popularity of mobile payments has lead to the emergence of new companies that aim to establish a formidable force in the evolving state of commerce. Droplet is one such company.
Droplet finds success in UK mobile commerce
Droplet is a mobile payments firm, which released a mobile application of the same name earlier this year. The Droplet application allows users to purchase goods and services using their mobile device. Users can transfer funds to others as well, free of charge. Droplet recently closed a successful beta testing phase for the application, wherein it saw significant success in consumer adoption. Backed by this success, the application is heading to London, where it aims to spark a commerce revolution.
Droplet sees major growth through beta testing phase
Commerce is becoming increasingly mobile-centric. Many consumers in the United Kingdom are becoming more comfortable with the concept of mobile payments, making it more likely for these consumers to make purchases directly from their smartphones and tablets. In Birmingham, where Droplet’s beta phase was focused, more than 60 merchants signed up for the firm’s services and more than 2,500 consumers downloaded the Droplet application in order to make mobile payments. In London, Droplet expects to see those numbers rise exponentially.
Mobile payments to become more attractive in London
Droplet will become more than a mobile payments platform in the coming weeks. Droplet Tools is currently in development and will serve as a platform that will enable applications developers to create customized features for merchants. Through these features, merchants will be able to leverage loyalty programs or provide consumers with special offers. The fact that Droplet is fee-free is also expected to attract a great deal of attention from London’s merchants.
