Bank of America report predicts that mobile payments market will grow 200 fold
Bank of America has released a new report that predicts the explosive growth of the mobile commerce space. Over the next seven years, the bank predicts that the mobile commerce market will grow 200 fold. This growth is being powered by the aggressive adoption of mobile payments systems by retailers and the growing demand for such services coming from consumers. Mobile shopping is becoming more common and many retailers are beginning to focus on the mobile space rather than conventional forms of commerce.
Mobile transactions set to reach $3 trillion by 2022
According to the report from Bank of America, mobile payments will reach $3 trillion by 2022. This is an increase of more than $16 billion from what mobile payments are currently. In India, particularly, mobile payments are expected to skyrocket. By 2022, one in every 10 transactions is expected to be made through a mobile device. Currently, approximately 0.1% of transactions are made through mobile devices in India.
New opportunities and security risks expected to arise as mobile commerce grows
The surge that the mobile payments space is expected to see could lead to major opportunities for banks, telecommunications companies, and independent mobile commerce firms, as well as other organizations that have shown interest in mobile transactions. Despite the opportunities that exist, however, there are also major challenges, especially when it comes to security. Many consumers have expressed worry over the security of their financial information, with some doubting the ability of companies to keep their financial information safe. This has prevented some consumers from participating in mobile payments in any significant way.
New technology is expected to make mobile payments more efficient and secure in the future
The mobile payments space is still quite young, but it is evolving quickly. New technology is making mobile transactions more efficient and secure and companies are becoming more proficient at becoming engaging mobile consumers. With mobile commerce becoming a powerful force throughout the world, more retailers are becoming mobile-centric as well, seeking out ways to cater to a mobile audience.