Mobile payments have never been more popular than they are now. Mobile payments are extremely valuable in the United States, as the mobile payments market is valued at about $1.5 trillion in 2020. The industry will likely grow by more than three times that value before 2026.
Many startups are introducing new ways for how people can use mobile payments. The payments industry has seen nearly $15 billion in annual investment money each year on average, a total that has been rising over the past few years.
People have also been willing to adapt to mobile payments. They are interested in contactless payment solutions, including mobile payments that people can complete through their mobile phones and various smart devices.
Mobile payments are exciting for how they make it easier for people to pay for things and to purchase more items. There are many other future trends to watch in this field. These trends show that the mobile payment industry is evolving and changing. They also show that people will be more likely to find some interesting developments that will make the field all the more exciting for people to watch.
Utility Payment Support
People have traditionally paid for city services and utilities through traditional platforms. Some people pay for these through the mail, while others can pay for what they use online.
As time progresses, these utility payments will become easier for people to manage through mobile devices. Mobile payment API solutions will eventually integrate with various utility and city service systems. These include energy providers, water companies, sanitation services, and other entities. APIs can allow people to pay for these services and others through one mobile payment endpoint.
Utility payment support has been prominent in a few places around the world. The DubaiNow app is one example. People living in the emirate of Dubai can use DubaiNow to settle utility bills and other charges through one mobile platform. The system simplifies how people can pay for things, plus it makes it easier for the local government to collect the funds they are owed.
Expect these payment systems to expand to where they are open in more places. API development of new utility payment platforms will be critical to future success, especially if they offer more unique services and systems that people can benefit from using in their work.
5G Makes a Difference
High-speed cellular networks have made it easier than ever for people to manage mobile payments. The development of 5G technology is exciting, as 5G signals will produce higher data rates that allow people to send and receive content faster. The lower latency also ensures there won’t be much of a lag in the network.
Expect more businesses to start focusing on mobile payment support very soon. They will want to take advantage of the new 5G market and how well the system works.
Data Analysis Will Make a Difference
Data analysis efforts are also important to spot. Data analysis entails businesses and retailers to review customer data surrounding how they spend their money and what might influence people to spend extra. These businesses will likely incorporate what they discover in their mobile payment efforts. They can promote their payment solutions to people who may use them the most.
Easy Cross-Border Trade
One benefit of mobile payments is that they can work in any currency one wishes to use. This benefit will be heavily utilized soon, as businesses use mobile payments to handle cross-border transactions.
Banks routinely link with one another when managing cross-border payments. A sending bank may need to make deposits in the currency that a receiving bank will use. The process can take a while, plus it may be subject to some fees.
Mobile payments will make these cross-border deals easier to facilitate. New platforms can help link and convert currencies in moments. These may also work with cryptocurrencies and other items that can work regardless of the country.
Mobile cross-border trades will especially be critical for places where traditional payments may be too expensive. For example, cross-border transactions in Africa often entail fees of 20 percent of their value. With mobile payments, it becomes easier for countries in Africa to avoid these exorbitant fees.
Proper API development is necessary for ensuring the work is easy to follow. The new API processes should include support for multiple currencies and the ability to switch between them as necessary. Mobile payments that can handle these features will be easier to manage than ones that still use an old method of handling content.
Working With Social Media
Social media platforms have never been as effective and thorough as they are now. People can access their financial data and pay for things through social media accounts. They can link their credit card or banking data to their accounts to facilitate whatever payments they want to make.
Social media websites will likely start producing new social media setups similar to what Venmo and other mobile payment systems use now. These will allow people to make mobile payments to other members on a social media platform.
The last mobile payments trend to see involves the rise of the payments-as-a-platform or PaaP sector. The PaaP segment has seen many new entities pop up over the last few years. Some of these groups include BlueSnap, WePay, Braintree, Stripe, Authorize.net, and Amazon Pay.
Expect more PaaP businesses to pop up as mobile payments become more prominent in society. But expect there to be good competition between these groups as they aim to differentiate themselves over what they provide to people. Each entity will require a unique selling proposition to make its offerings more interesting to the public.
The mobile payments industry will continue to grow and expand as more options become available and people start to see what makes the field worthwhile. Expect these trends and many others to become more prominent, as there will be many unique and exciting developments that will produce a more interesting environment for all to watch.