Are Mobile Payments Here to Stay?

Written by  on 19 November 2015

Mobile ordering and mobile payments are being adopted by more and more merchants every year. The idea of placing orders and paying for them on your mobile device is not necessarily a new concept, but it has become more popular with the release of Apple Pay and similar services.

The widespread popularity of smartphones means consumers can now load their credit or debit card information onto their phones and pay for products in advance over the internet, by NFC (near field communication), or by scanning QR codes (digitized bar codes).

To better understand how this trend came about and to see where it is going, we will examine the rise of mobile payment technology and examine why it is catching on for some and why it is not for others.


A 2015 study by the Federal Reserve reports 22 percent of all mobile phone users made a mobile payment within the past year. That’s a 16 percent increase from 2014. Mobile transactions have grown by 118 percent over the past five years, according to Business Insider, and they predict a 2,000 percent increase in volume mobile payment sales by 2019.

On the other hand, Business Insider predicted mobile payment technology would reach over $60 billion in volume sales by the end of 2015. They have since revised that number to $37 billion, which they attribute to later-than-expected introductions of mobile payment software by big tech companies.


Google Wallet debuted in 2011, allowing people to use NFC to basically turn their smartphones into credit cards. In 2014, Apple did the same when they introduced Apple Pay. Recently, Google replaced Google Wallet with an app called Android Pay, turning Google Wallet into a peer-to-peer form of money exchange program where friends and family can send money to each other. Other players have entered the mobile payment marketplace as well – CurrentC, Samsung Pay, and LevelUp are a few of the more popular ones..

There is no doubt that the use of mobile payment technology is increasing, and so is the adoption of the technology by businesses. POS retailers are seeing increased sales of NFC and QR code-capable POS systems everywhere.

Why do people like mobile payments?

Speed Customers can place orders and pay for them before they even arrive at the restaurant. They can simply walk in, say their name, and pick up their order without having to wait in line. Or if they choose to pay in-store, their order is already placed and all they have to do is put their smartphone near the payment terminal to complete the transaction.

Convenience Smartphones can use GPS to identify the customer’s location, giving them a list of nearby restaurant locations. This is especially good for traveling. Also, instead of carrying around credit cards, which can be risky, customers can store all of their payment information securely on their smartphones. Additionally, using store apps, customers can recall and repeat past orders at restaurants they previously patronized.

Apple Pay

Apple CEO Tim Cook called 2015 “the year of Apple Pay.” However, the numbers have not lived up to his prediction. According to Aite Group research, Apple Pay only accounted for 1 percent of all retail transactions in the United States in the past year. Results from a Kantar Worldpanel ComTech survey show over 75 percent of iPhone 6 (and 6 plus) users had not utilized Apple Pay as of April 2015. In June, only 13 percent of 1,500 people surveyed by InfoScout and said they had tried Apple Pay. Some of this has been blamed on Apple Pay only working on the newer iPhones and iPads, while most of it has been attributed to low adoption rates among companies and a lack of marketing of the app by Apple Inc.

Although the adoption of mobile payments and mobile payments technologies has not been as swift or great as originally expected, growth is still occurring and the trend should be expected to continue.


Read 976 times Last modified on Monday, 17 June 2019 16:30

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