The payments world is in a state of evolution – from cash to check to credit to cardless. Intuit developed an infographic which effectively illustrates how mobile payments are growing and where they’re going in the future.
Today, the two biggest payment methods are credit and debit cards – with a small, but rising mobile payments currently making up a mere 5 percent of purchases executed.
According to Aite Group, though, U.S. consumers’ use of cash will decline by a total of 17 percent, or 4 percent every year, between 2010 and 2015. Cash is expected to drop to just over $1 trillion changing hands in 2015.
Meanwhile, alternate (mobile, online and contactless) payments are projected to surge considerably to $2.7 trillion, hugely surpassing cash as a trusted method of payment.
A key driver for the jump in alternate payments is the proliferation of smartphones. Smartphones have permeated over 40 percent of mobile users, AND 37 percent of small business owners –creatinga level playing field for people wanting to buy and sell over the phone.
A KPMG study shows that 83 percent of people believe mobile payments will be mainstream globally within the next four years, and other analysts agree. Juniper Research projects 2.5 billion mobile phone users will make mobile payments in 2015, and Yankee Group forecasts global mobile transactions will exceed $1 trillion by that year.