US may need to mimic the UK to find success in mobile payments

UK shows that success in the mobile commerce space is quite possible

The United Kingdom may be leading the United States when it comes to mobile payments. The latest statistics coming from the UK Cards Association show that one in 10 card transactions are now made through mobile devices using contactless systems. This has grown considerably over what it had been in the last year. In the U.S., mobile payments are still fighting to find a foothold among consumers for various reasons. If companies operating in the mobile commerce space want to ensure success in the country, they may have to look elsewhere for inspiration.

Apple Pay is fighting for a foothold in the United States

In the U.S., consumers are interested in mobile commerce, but relatively few participate in this space. Apple Pay, one of the country’s more popular mobile payments services, has found only modest success, with only 3.5% of mobile transactions actually being completed through the platform. This is actually lower than the transactions that Apple Pay accounted for in March of 2015, which stood at 5.9%. Fewer people are now using Apple Pay than in the past and this is a trend that is being seen with other mobile payments services as well.

Ubiquity may be the key to success

Mobile Payments Plan for SuccessIt companies in the United States’ mobile commerce market want to succeed, they may have to focus on ubiquity. This is something that the UK market has accomplished quite well. The country is home to the most heavily concentrated banking and acquiring segments and retailers in the country serve a very well defined geographic market. Barclays, one of the country’s largest banks, accounts for more than 40% of all credit and debit card spending. The country also has a multitude of merchant acquire options. What this means is that if Barclays backs mobile transactions, it is extremely easy for retailers to accept payments being made from mobile devices, something that is not readily apparent in the U.S. market.

Mobile commerce is growing in Australia and Canada at well

The UK is not the only country where mobile commerce is flourishing, of course. Both Australia and Canada have rapidly growing mobile commerce markets, which are becoming more competitive with what has already been established in the U.S. While mobile payments are having trouble finding momentum in the U.S., the market is still quite attractive to companies that want to provide consumers with new mobile services. There may need to be a greater focus on ubiquity in order to ensure future success, however.

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