Image | Sergio Uceda
We live in a digital world and we increasingly find ourselves using new technologies to make payments. Services such as Paypal, e-cards, contactless, mobile applications or mobile payments (wallets) are available worldwide. Especially in the United States, where a study by Business Insider predicts that 6 in 10 Americans will use their mobile phones to make payments by 2019. That’s just four years away. We’re not talking about the distant future.
Image | Business Insider
The study suggests that the evolution of mPayments goes hand in hand with the emergence of new payment methods now being implemented by large technology companies such as Apple, Paypal, Google and Samsung.
With the introduction of Samsung Pay and the acquisition of the online payment platform LoopPay, Samsung has acquired a large market share in the sector. LoopPay is leading the field among platforms payment via smartphone thanks to the manufacture of bags equipped with a wireless payment system that communicates through a magnetic field with the terminals at the point of sale. This payment system has the greatest compatibility in the market as it is covers most of the devices currently available.
The study conducted by Business Insider asserts that, within four years, the volume of transactions via mobile payments will reach 808,000 million while today the figure is only around the 150,000 million mark.
This type of dramatic increase in such a short period of time indicates that the short-term trend is making payments through your smartphone. Your device is acquiring more and more of your transactions and, with regards to usage, the study shows that currently 8% of Americans use a mobile phone at least once a year to make payments but by 2019 this figure will have gone up to 65%.
In Spain, slowly but surely
A report from The PwC and IE Business School Financial Sector Centre says that in Spain, mobile payments are increasing day by day and, although cash or credit cards are still dominant, gradually we are seeing an osmosis of mPayments permeating the Spanish consumer society. Paypal is the best known example while Apple Pay, without even having arrived in Europe, is considered to be one of the options with the greatest potential. Other innovative options such as virtual cards and contactless are used by 18% and 15.2% of Spanish consumers, respectively.
Image | PWC
Towards a world without cash
Can you imagine a world with no cash? Perhaps it’s hard to imagine for many but it’s not so complicated in Denmark.
The Scandinavian country is one of the first countries in the world that dreams of eliminating cash purchases. The Danish government has already proposed that most stores stop using cash registers in January 2016. It is still far from being law but it is one more step towards a society without cash.
The transition will not be a difficult road. Currently, about 40% of the population uses the Danske Bank MobilePay system, which allows money transfers between people as well as shopping at online stores. Michael Busck-Jepsen, CEO of the Danish Bankers Association notes that “a society without cash is no longer a dream but a vision that can be realized within a reasonable time frame.” We might not see it coming, but the change is just around the corner.