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Mobile Payments Trends That Are Followed Worldwide
Mobile payments can reach $3 trillion USD by 2021. While that is a huge amount of money transacted through these small-screen devices, mobile-based payments will equate to only an estimated 11% of all consumer card payments across these markets in 2021, up from approximately 5% in 2016.
As mobile phones set themselves as the most popular device on the planet and mobile-based commerce continues to expand, the market potential in the next 10 to 20 years remains high. The stakes are high for merchants, payment players, and brands, which are all trying to be among the first to get mobile right and gain more connected consumer base.
In the U.K., 17% of consumer payments are executed through a device, with mobile emerging as the preferred device for executing commerce. An estimated 38% of digital payments in the U.K. are expected to be done with a mobile device in 2020, up from 12% in 2015. In the U.S., where mobile-based commerce is anticipated to grow the fastest, mobile's ratio of digital payments is expected to increase from 20% in 2015 to 46% by 2020.
The willingness to make digital purchases continues to increase in both these markets, as digitally savvy consumers become more familiar in purchasing online across all categories. Consumers broadly expect this system to exist. Most products and services can be availed digitally, with even cash-only businesses, such as cleaning services, cab drivers and hairdressers now accepting online payments. Mobile phones appeal to the digital consumer's desire for convenience thanks its ability to enable transactions anywhere.
Younger Generations Are Becoming More Attracted To Mobile Commerce
Coming generations are not only the consumers that will control tomorrow's wallets, but these are the consumers who are ready to adopt new technologies. New payment methods are no exception. This new set of population is most likely to adopt these new ways of buying, and they also represent future commerce growth.
In 2015, millennial's, the generation that reached adulthood in the new millennium, already controlled 30% of gross income as compared with other generations. By 2025, when adding in Generation Z or the cohort born after the millennial's, these two generations are expected to control 47% of gross income by 2025. These generations will be important for any future digital commerce plans. Compared to rest of the generations, millennial's are the most likely to have purchased goods or services on a mobile device, according to Euro-monitor International's 2016 Global Consumer Trends Survey.