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Top Digital Financial Services Trends of 2016

Last update on Oct. 18, 2016.

Top Digital Financial Services Trends of 2016

Mobile in-store payments have gained enormous traction over the past several years.  Once viewed as a technological and fraud-laden business solution, mobile payments are now critical to delivering a consistent marketing and branding experience to those customers who rely on the mobility of their devices.

The migration and launch of mobile wallet solutions from smartphone providers have been the two largest enabling factors for in-store mobile payment growth.  Consumers will continue to be further incentivized by offers and loyalty programs, which will drive up volume.

Before merchants upgraded their terminals they wanted to know that there was a demand for mobile payments.  The new terminals brought about an unforeseen expense that necessitated the demonstration of consumer growth to warrant the expenditure.

With the momentum of EMV (Europay, MasterCard and Visa), the new global standard for cards equipped with computer chips, the technology used to authenticate chip-card transactions has eased the concerns over fraud accountability.  For consumers to adopt mobile payments they needed to understand the experience and to be able to use them in-store.

So the question is, “which group will drive quicker retailer adaptation?”

There are three in-store payment drivers that will continue to define the market:

Mobile Wallets are Plentiful

Tech companies, such as Google, Samsung and Apple, have released mobile wallet solutions that come native on the vast majority of smartphones.   The different software solutions needed from each party in the transactional chain are all stitched together and the technology brand provides safe transactional confidence.  The only essential consumer marketing is getting a user to try something that is already present on their phones.

Retailers are Onboard

In the U.S. the EMV migration is forcing retailers to upgrade their POS systems.  To stay ahead of the curve, many are opting for NFC-compatibility as well.  That solves acceptance.  Already, 2 million retail locations accept Apple Pay.

Consumers see the benefits

We expect that 65% of the US population will make a mobile payment at least once in 2019, up from 8% in 2015.  Incentives, including store-loyalty cards, could be the primary driver for consumer adoption.

Companies need to develop unique ways for their existing digital strategies to become further enhanced with a consistent branding message.  Providing end-to-end mobile experiences for some customers is essential.  Including traditional branding strategies with the options for mobile payments, will further enhance market growth and brand relevance to a new consumer.

KlerigiTeam

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