A lot of interesting trends are happening in the mobile payments space, which could indirectly influence the adoption of BItcoin and digital currency. Current estimates show worldwide mobile payments will increase by 60.8% through to 2015.
Mobile payments have always been a great way for consumers to pay for their purchases, despite some of the hurdles they are facing. Not every shop or store works with mobile payments yet, but given the increasing choice of point-of-sale systems with NFC or other means of connectivity, it only seems to be a matter of time.
As we have seen over the past few months, several Bitcoin and digital currency-related companies are also working on some form of mobile payments. Just two days ago, we talked about CoinBlesk , who are focusing on NFC capabilities. Or the article we did about the Aegis Bitcoin wallet being available on Android Wear. These are just some of the latest examples of technological advancements being made in the Bitcoin space.
A lot of people are expecting ApplePay to play a major role in the growth of mobile payments, which is something no one can deny. With more and more people owning smartphones, tablets and even smartwatches, we are slowly evolving towards a cashless economy in the Western world. Over the past 12 months, countries such as Finland, The Netherlands, United States and Australia have the highest rate of cashless transactions in the world.
“We can confidently forecast that Australia will keep pace, or exceed the forecast 2013 growth rate in non-cash transactions of more than 12 per cent for the mature Asia Pac marketplace. M-payments will increasingly form a substantial component of this growth, where we expect to keep pace with the extraordinary global growth projection of more than 60 per cent sustained through to 2015.”
-Phil Gomm, Capgemini Australia
Traditional banks could be the biggest “loser” in the evolutionary race towards mobile payments, as non-banks, such as Paypal for example, see a far higher and faster growth in mobile transactions.
Even though traditional banks are still responsible for the gross of M-payments (25.4 billion out of 29.2 billion transactions globally in 2014), non-cash payments’ market share is expected to decline by half in 2024.
Side note from the author : My own bank here in Belgium has a mobile application, and even though I have it installed on all of my devices, I have never even used it. I still use regular old PC banking for any bank-related transactions for some reason.
There is also a clear trend in the usage of mobile payments with digital currencies, as over 60,000 Bitcoin transactions are executed through mobile devices on a daily basis. We did not receive any numbers on “other digital currency” transactions unfortunately.
More and more customers want to execute real-time payments with instantaneous transactions, which explains the growth in mobile payments. As a result, there is a need for a real-time payment platform for the underlying infrastructure.
“As CSMs [clearing and settlement mechanisms] evolve, there is also greater scope for real-time payments processing. Disruptive technologies such as mobile and customer demand for data visibility with improved analytics capabilities are also key forces.”
Data visibility is not an issue when it comes to Bitcoin payments, whether they are mobile or executed through a computer. The Bitcoin blockchain is an open ledger for any and all transactions, and therefore makes a direct competitor for more established mobile payment providers.