The prediction is that this monthly rate will have been achieved by the end of the year.
The latest forecast from Visa has shown that it believes that its mobile payments will experience an uptake that will help to make a serious dent in the usage share, cutting into the use of physical cash.
The credit card giant has predicted that there will be more than 50 million monthly contactless transactions in Europe.
They feel that this number will have been achieved before the close of this year. The head of mobile business at Visa, Sandra Alzetta, has explained that as NFC technology equipped smartphones start to make their mark on the European marketplace, mobile payments using that tech will begin taking off. This includes devices such as Samsung, which will be equipped with the PayWave and mobile wallet services from Visa.
Mobile payments will help to boost convenience over carrying cash, says Visa, just as credit cards have done.
According to Alzetta, “From our perspective mobile is of enormous importance. By 2020 half our volume in Europe will be generated by a mobile phone.” She added that “Obviously we love plastic and it’s worked very well for us but we have this focus on mobile because it means our customers have a device in their hands that is always on them and is personal to them.”
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Alzetta also explained that there are many benefits available to consumers who use mobile payments instead of using traditional cash payments, which is why Visa is driven to push the uptake of this form of transaction. She expressed that her company feels that cash is dirty and inefficient, and that they “hate cash with a passion.” She said that the company is very pleased that this technology provides them with “more ways to attack cash”.
The first way that mobile payments offers convenience is that small retailers are likely to accept it even if they have not previously allowed for credit card payments. Moreover, it also provides an informal way for people to make send funds to one another in areas where they previously still used cash.