ETA Expert Insights: Top 5 Mobile Payments Trends to Watch for in 2021
By Members of the Future of Payments Working Group with the ETA Mobile Payments Committee
What are the emerging trends in the adoption and use of mobile payments? The Future of Mobile Payments Working Group, which sits inside ETA’s Mobile Payments Committee, is considering upcoming developments and their implications for the mobile space. Here are some of the mobile trends they think will impact merchants and consumers.
INCREASED ADOPTION OF MOBILE PAYMENTS
Harvie Franklin, Intuit
As the world returns to a state of normalcy, the adoption of mobile payments will be critical to accelerate consumer engagement with activities outside of the home. Consumers and businesses alike will desire mobile payment solutions that solve their biggest problems, such as creating a seamless and contactless experience, driving faster payments, and protecting vulnerable data and information. In 2021, we should expect to see an increase in payment companies bidding to solve these problems through the development of solutions leveraging innovative technologies and strategies.
QR CODES EXPAND THE OMNICHANNEL EXPERIENCE
Chaila Sanchez, US Alliance Group
Since the pandemic began, we have seen an increase in use of QR codes in the digital ecommerce space. QR Codes are simple and easy to use. They provide a contactless form of payment that is fast and efficient. For example, QR codes are popular among restaurants, allowing patrons to easily view the menu and pay for orders directly on their phones. In addition, QR codes are now being used in ecommerce livestreaming by social media influencers. The social media channels promote products and flash the QR codes that direct consumers to the online shopping cart.
BUY YOUR GAS FROM YOUR PHONE
Ruanne Lloyd, Electra Protocol Project
We all have been in the situation when we are almost out of gas and need to fill up. In today’s world, there are many apps available that allow you to find the nearest gas station and even offer the ability to make the payment from the app, eliminating the need to swipe your card. The only criteria to do so is that you must link your debit or credit card, or even a checking account, to the mobile app account. There are even apps that use wallets, such as Google Pay or Apple Pay. To purchase gas, you enter the pump number, fill up, and then pay. An electronic receipt will be sent to your phone, eliminating the need to print one. If you want to take advantage of the savings offered by loyalty rewards, you can get those rewards using the app without having to swipe a loyalty card. As QR codes become more popular, you will scan the pump number instead of entering it into the app, which will ensure that no mistakes occur. Should you need to go inside to purchase drinks or a snack, you can take advantage of this same technology, once again eliminating the need to swipe a card or exchange money.
TAP TO PAY
Karen Rowe, Global Payments
Tap to pay, which means tapping a card reader with a contactless-enabled credit card or mobile device, has been popular in Europe and Canada for several years. I think we’ll see continued growth in this in the U.S. as more issuers send out cards with contactless functionality, and as more people go to retail stores in person post-pandemic. Transit has also been a driver in the U.S., where in many cases people are trying Tap to Pay for the first time and building lasting habits.
MOBILE WALLETS TO SURPASS CARDS
Adi Ekshtain, Amaryllis Payment Solutions
Ecommerce and digital wallets were growing increasingly in the last few years, but they spiked in 2020 as COVID-19 boosted digital payments adoption while sending cash into a free fall. The number of people switching to mobile wallets as a cash-free payment method is on the rise and will speed up in 2021.
With the increased adoption of mobile wallets on the consumer side, it will also become important for merchants to accept mobile payments so they can improve customer acquisition and remain competitive in the marketplace.