A growth of over 400% since the year 2012, mobile payments are estimated to grow to an amount of over $1.3 trillion worldwide by year 2017 (Sherman, 2014).
As a result, the only thing you’ll only ever need when leaving the house is your phone. Forget your wallet, that will soon no longer be needed. Mobile phones are your best friend from now on. Or even more important than your best friend, because that’s going to be the only item you’re ever going to need everywhere you go now.
Throw out your wallet, say goodbye to cash, goodbye cards……and HELLO MOBILE PAYMENTS! The newest revolution of this period!
Hi everyone, we meet again. Today at destination #5, we will be exploring the world of mobile payments.
The evolution of payments has increasingly changed over the years, where we started from cheques, to cash, to credit cards, to today’s new form of payments, that is mobile payments aka mobile money.
So why mobile payments? What are the reasons for businesses to adopt mobile payments? According to Sherman 2014, it’s simply due to:
- Reduced costs (Did you know that ATM transactions were 60% more expensive than a mobile transaction?)
- Increased Reach
- Growth in mobile usage (Now a days, approximately 50% of individuals are using the function of mobile banking on their smartphones. Individuals have increasingly seen the importance in mobile banking, that some customers have switched banks simply due to poor mobile banking experience)
You may have seen the recent ads for ANZ Bank, where they have made the switch to mobile payments: “ANZ Mobile Payments – Head Tap TVC”
ANZ Mobile Pay is the newest invention, where you’ll no longer need to fumble with your wallet. ANZ Mobile Pay allows you to tap and pay with your mobile phone. However, unfortunately this is currently only compatible with Android phones.
With this latest creation, ANZ aims to commit towards providing their customers with innovative solutions, making their lives easier.
Three types of payments are currently being offered:
- Wake to Pay ; where payments can be made with the phone being locked
- Launch to Pay ; Mobile Pay app must be active for payments to be made
- Passcode to Pay ; app must be launched and requires a passcode
Payments made under $100 do not require a PIN, and customers are able to use Mobile Pay to withdraw money at contactless enabled ANZ ATM’s (Saarinen, 2016).
To date, ANZ is one of the last Big Four banks to have offered mobile payments. With Apple introducing its mobile wallet ‘Apple Pay’ last year, offering American Express consumers who are Iphone users a mobile wallet form. Additionally, by the end of the year, ‘Android Pay’ which is Google’s own digital wallet, is said to reach Australia (Pearce, 2016).
So…. let me ask, what are your thoughts on mobile payments? Have you ever used mobile payments before? Did you find it easy and convenient? Would you use it again? Why don’t you want to use? Please leave your thoughts in the comment section below as I’d love to hear whether you are a nay or yay with this new revolution.
And so folks, we have reached the end of destination #5. But don’t be disappointed, as we will soon meet again, so back on the bus, and onward towards our next stop. Speak soon.