PayPal has revealed that over the last three years, the growth in the use of this technology has exploded.
According to the latest Secure Insight report from PayPal, smartphones are becoming an extremely important part of the overall shopping experience, as mobile payments are being greatly embraced by Australians.
This has reached the extent that in three years, they have grown by a factor of 5000 percent.
PayPal explained that this mobile payments growth rose from a base of $37 million. Beyond Australia, the wider online retail market experienced an 11 percent growth to bring its own figure to $36.8 billion. When compared to retail transactions, overall, this is significant, as the total figure had been estimated at only 2 to 3 percent.
This demonstrates that mobile payments are rising far more quickly than transactions as a whole.
Jeff Clementz, the managing director for PayPal Australia, has explained that the last three years that the company has experienced in retail in the country had been focused on expanding e-commerce. However, he has said that the next phase is now underway and it will concentrate on solutions for the point of sale.
He explained that “Technology development has driven deep structural change in Australian retail.” Clementz also went on to add that “Where once there were few retailers that could truly be called omni-channel, today there are many connecting with consumers in-store, online and on the go.”
The focus that PayPal has now taken is to change the way that the cash register experience works for both retailers and consumers. This aligns with its recent announcement of its PayPal Beacon mobile payments service. Within it, consumers are provided with a hands-free experience. It allows customers to head into a brick and mortar shop, choose their products, and then pay for them at the checkout counter without ever taking their wallets or their devices out of their pockets or purses.
The hope is that these mobile payments will provide a much faster, smoother, and more convenient transaction to enhance shopping, overall, and simplify the purchasing experience to a point that has never before been achieved.
Mobile payments company uses Square as an example
Mint, an Australian mobile payments company, has been negotiating with three of the largest banks in Australia concerning the launch of a new mobile commerce platform. The company intends for the platform to emulate a similar platform designed by one of the leading companies in the mobile commerce field: Square. U.S.-based Square boasts of one of the most widely used and successful mobile payments services in the world, making it an attractive example for Mint’s initiative.
Mint to base new solution off of Square platform
Mint develops a variety of white label mobile payments applications for several companies interested in engaging mobile consumers. The company recently attained accreditation from Bendigo Bank, giving it the green light to pursue a new payment card initiative. Last month, Mint launched a small card reader designed for smartphones in New Zealand. The reader can process payments from credit cards, making mobile commerce somewhat more accessible to consumers without NFC-enabled devices. This particular product is being used by more than 1,000 Bank of New Zealand customers.
Regulations may impede success
Mint is expected to launch another mobile payments service within the coming weeks and its latest offering is expected to be based heavily on that pioneered by Square. Square boasts of more than 4 million users worldwide and processes some $15 million in mobile payments every year. Much of Square’s success has been garnered through the relatively lax regulations that exist in the U.S. concerning mobile payments. In Australia, however, staunch regulations may make it difficult for Mint to mimic the success of Square, especially because Mint is forced to work through banks rather than market its mobile commerce solution directly to businesses and consumers.
Consumers eager for NFC-free mobile commerce
Mobile payments are becoming more popular among Australian consumers, which bodes well for Mint’s future plans. Many people are demanding access to mobile commerce services that are not based on NFC technology. This is due to the low availability of NFC-enabled devices. Mint is well positioned to meet consumer demands with its technology and line of products.
