Trends shaping the future of mobile payments

Whether you welcome it or fear it, the "cashless society" is increasingly becoming a reality. Advancements in card usership, mobile banking and contactless technology have made paper money an increasingly rare sight across the developed world.

Now, in the midst of the coronavirus outbreak and the obvious accompanying public hygiene concerns, businesses are even more reluctant to handle cash, meaning the mobile payment trend is set to continue its assault on the finance world.

As ever, industry insiders are attempting to help business stay one step ahead of the competition, and highlight the trends and developments shaping the future of mobile payments. Here are some of the key advancements we can expect to see across the field.

Biometric protection

Whilst mobile payment usage continues to skyrocket, many remain understandably cautious about security and the potential exposure to fraud, especially amongst older populations. Research by Simon-Kucher and Partners found that 40% of US based customers who avoid mobile payment methods do so because of fears over its security.

Obviously, this presents a concern for mobile payment providers, who are missing out on a potentially significant volume of customers, and must therefore attempt to allay the fears which remain for many. One way in which providers could improve trust in security is via biometric protection, including facial recognition, finger-prints and eye scans. Viewed as more secure than passwords and signatures, further security is vital to convince more cautious consumers, and will no doubt become a more prominent feature in mobile payment methods.

Chinese dominance

It's no surprise that Chinese mobile payment providers lead the industry, given its huge, young and tech savvy population. Hangzhou based Alipay overtook PayPal in 2013, and together with WeChat Pay the main Chinese players boast over two billion users. China's leaders have been less than subtle in their aims of using tech dominance to expand Chinese interests abroad, and its mobile payment prevalence has already caused disputes with international rivals, with India and The US both attempting to curtail the growth of Chinese apps in their respective nations.

China's rise in all facets of society and commerce is unlikely to slow, and we should all prepare to witness increasing Chinese influence in mobile payment and other tech.

Virtual Reality

VR has been poised to take the world by storm for a number of years, and whilst it hasn't quite permeated into everyday life, its use has expanded into a vast array of sectors, including education, travel and now into commerce.

Many business have now started to seriously weigh up a move to VR commerce which can facilitate faster and far more convenient mobile and card payments. Online gaming platforms and casinos, who have historically been seen as early adapters of emerging payment tech look set to embrace this move first, and as these sectors look towards incorporating VR tech as a whole into their offering, a shift to VR commerce is the next logical step.

Facilitating faster payments is big business, particularly for casino brands and operators. Research suggests that customers who link quick payment methods to their account are more likely to spend, or wager, more and this has even given rise to card registration bonus casinos that are now prevalent online.

Other sectors, such as retail, will be looking on closely to see if online gaming starts to embrace VR commerce and over the coming years we could soon see VR payments being facilitated in bricks and mortar outlets.