Tag: mobile payments study

Mobile payments currently comprise a tiny fraction of American POS volume

| April 18, 2013

Mobile Payments POSThe latest research indicates that it makes up only 0.01 percent of the total in the United States.

According to a report that was just issued by Javelin Strategy & Research, mobile payments using contactless technology at the point of sale (POS) made up only a tiny sliver of the total volume in the United States in 2012.

The report indicated that this technology was used for only 0.01 percent of the total POS volume in the U.S.

The research data showed that the total amount spent over contactless mobile payments was approximately $500 million. At the same time, though, the report did not see a grim future for this form of smartphone based transaction. In fact, based on their predictions, things are looking bright in that area.

The forecast made by the report is that there will be an increase in mobile payments at a CAGR of 61 percent.

According to Javelin’s predictions, the compound annual growth rate that will be seen for mobile payments using contactless technology will be 61 percent this year. This will mean that the method will experience growth at a rate that is higher than any other method. In fact, it is predicting that this trend will continue over the next five years, and that in 2018, the total volume will have reached 5.4 billion. This will mean that it will make up 0.13 percent of the total POS volume in the United States in that year.

A Javelin industry analyst, Aleia Van Dyke explained this trend by saying that the point of sale market in retail is experiencing a very rapid evolution, as the popularity of smartphones and mobile payments takes off. There is a much greater expectation from consumers today, as they feel that the retail businesses where they shop should be providing an enhanced shopping experience while inside the walls of the store through the use of smartphones.

The rapid implementation of mobile payments and other transaction options such as prepaid and gift cards have helped with the adoption of other technology based options, among consumers, according to Van Dyke. As a whole, retail POS purchases last year brought in $3.98 trillion. The prediction for five years down the road is $4.2 trillion.

Mobile payments research study reveals explosive growth trend

| April 11, 2013

Mobile payments to excel in futureAccording 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.