Gone will be the days of fumbling through dollar bills and loose change. No more waiting in line as the customer in front of you takes more time than necessary removing his or her credit card, swiping it, and typing in the pin. Mobile payment technology is here, and it’s in demand.
Over the course of the last year mobile payment has rapidly gained headway in the world of retail, with brands like Starbucks and Apple currently leading the mobile payment market. Apple, for instance, introduced its all new mobile payment and digital wallet service, Apple Pay, last October in an effort to further simplify and enhance online payment for Apple customers. The service was highly anticipated and praised for its originality and convenience. The service may have a seemingly low adoption rate, seeing how 85 percent of iPhone 6 users have yet to try the service as of March 2015; however, consider this is a decrease from 91 percent who had yet to test out Apple Pay as of November 2014.
On the whole, the statistics aren’t groundbreaking—the number of customers using mobile payment is up from only half a percent in 2014, according to Deloitte—but consider that Apple Pay was brought to market less than a year ago. As such, many industry experts believe the market has yet to realize its full potential, but it will be making significant strides in the years to come. Forrester, for instance, predicts that the mobile payment market will grow to $142 billion by 2019.
So, what does this mean for your business? The time to embrace a mobile payment system is now in order to remain competitive and, most importantly, relevant in the eyes of the consumer. Consider world-renowned brands like Disney, for example, that have made notable moves in the world of mobile payment. Disney’s Magic Kingdom, for instance, now offers “magicbands,” small plastic, waterproof, wearable bands that contain a short-range RFID (radio frequency identification) chip. The bands act as admission to the attractions in Magic Kingdom, as well as a mobile payment system that can be used for food, beverages, and merchandise. The band is linked to the user’s credit card and enables simple, easy, and quick purchases within seconds.
So, how can e-commerce businesses today strategically leverage mobile payment technology, like Disney, to gain market share and increase profits? Mobile payment technology can enable businesses to revolutionize the state of online shopping by being able to track customer trends and inventory (what users prefer to buy); enable more flexible cash-only policies by being able to accept alternate forms of payment; and lessen nominal fees with faster turnover to cash flow.
With this growing use of mobile payment technology, however, comes a need for stronger and more scalable infrastructure so that e-commerce retailers can expertly handle an anticipated increase in network bandwidth and data connectivity. A scalable cloud database solution, like ClustrixDB, can drastically improve organizations’ mobile payment strategies by enabling them to better handle spikes in transaction volume. In doing so, organizations can avoid performance bottlenecks that can occur due to slow or inefficient processing, which can of course negatively impact the customer experience.
With mobile payment technology slated to skyrocket in adoption in the years to come—and with the holiday shopping season right around the corner—it’s imperative that organizations don’t fall behind the curve. It would be wise for businesses to take part in this new generation of shopping by utilizing mobile payment while it’s gaining traction now.