Consumer adoption of mobile payments (m-commerce) will triple in the next five year according to a UK report by credit card company Visa.
The report suggests that over £1.2 billion (AUD 2.3 billion) will be made per week via mobile devices by 2020. In the next five years, VISA predicts that 60 six in ten Britons (60 per cent) are expected to use their mobile devices for payments at least once a week.
The Mobile Money report surveyed over 12,000 mobile consumers in the UK, Finland, France, Germany, Poland, and Spain. The survey found that one in four Brits are expected to use their mobile phone to make payments on a daily basis by 2020, growing from the one in 12 who do so in 2015.
According to the survey, 43 per cent of shoppers said they would be interested in using a mobile wallet service and nearly half (47 per cent) are interested in using their smartphone to make everyday contactless payments.
Jeremy Nicholds, executive director for mobile, Visa Europe said: “Contactless and online commerce enhancements have been key in paving the way for the next generation of mobile payment technology. The environmental conditions are already in place to meet the demands and expectations for digital payments. It’s no longer a question of ‘if’ consumers will embrace this new way to pay – it’s when – and for us the next 12 months are when mobile payments become mainstream.”
The report also found that while apps and music are still the items purchased most frequently via mobile devices today, a growing number of consumers are already buying higher value items, with electronics (23 per cent) and clothes (22 per cent) among their top-five most purchased m-commerce items.
The main concerns about mobile payments, a third of respondents admitted that they didn’t know enough about the technology. As well as issues of privacy, fraud and security.
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