What technologies are developing mobile payments / Blog of the company Wirex / SurprizingFacts

Get rid of cash and start paying for everything with your smartphone? Attachment of consumers to their smartphones led to an explosive growth in the popularity of mobile purses.


But only the strongest survive. With so many options available, including the ability to create their own types of mobile payments, businesses are making every effort to distinguish fleeting trends from useful long-term phenomena.

When it comes to the future of mobile payments, several factors play an important role : A set of available payment technologies (for example, mobile wallets and payment platforms), the revolutionary impact of innovations such as AI, machine learning (MO), and blocking, and, of course, sheperechislennogo factor as the popularity among consumers and their acceptance. Let's look at the main factors and how consumer preferences will affect the future of mobile payments.

More payments – more problems

First, let's talk about payment technologies. If you look at the current state of mobile wallets, you will get the impression that almost all of the company's customers, from Starbucks to technology giants like Apple and PayPal, are already working in this segment. However, according to this year's study of mobile payments and fraud, merchants, with the exception of PayPay, are still reluctant to accept payment through mobile purses. According to the research, only 22% of them offer a similar method of payment. What is the most likely reason for this state of affairs? Most merchants (70%) expect that the mass distribution of mobile wallets will happen only in 2-5 years, and therefore they do not see the need to rush into adding their payment methods to their lists right now.

So what does the future of the purses look like? As in other industries, over the next few years we will continue to observe the rise of this phenomenon and the growth of the number of available options. The growth will be followed by a collapse, which will result in various mergers. The market will come to an established state and there will be clear leaders on it. What will lead the leaders to get ahead? This is decided by the consumer. In the next few years, buyers, and the main driving force in their ranks – representatives of the generation of millenials – will make different decisions. It is the opinion of this category of customers that will be decisive.

Blocks and Chains of Innovation

Another factor that influences the future of mobile payments is the introduction of innovations. In the last few years, two technological sectors have grown: artificial intelligence and machine learning. The use of AI and MO is associated with certain widespread fears in the society.

However, I believe that instead of problems AI will bring improved workflows through the use of machine learning and help human workers create better products and make better decisions. It should be noted that an attempt to bet on AI alone can lead to negative consequences. Artificial intelligence and machine learning must go hand in hand with human observation and evaluation. This will make it possible to combine human wisdom with the ability of a computer to "sift" and analyze large amounts of data that human consciousness can not capture.

Despite the fact that AI and MO have already emerged as leaders in popular technologies, there are other noteworthy Development. For example, has not yet become so familiar blockage phenomenon, has the potential to make a major impact in the future. The technology created for Bitcoin technology, whose name has already become a new fashionable word in the technology industry, is a digital register, whose transactions are publicly available and recorded in chronological order. The buzz around the blockroom is getting louder, especially when it comes to mobile payments. A recent study by Juniper found that 57% of firms either test the use of blockages to simplify financial transactions or have already deployed such systems.

In general, it is not easy to integrate elements of new technologies into previous generation systems. Most companies are not eager to take out the systems that have served for many years in exchange for the opportunity to try some new technology. As a result, many companies simply do not have special departments for research and development, which limits their opportunities when it comes to extracting benefits from the latest fashionable words that have emerged in the industry. As an example, we can mention the ridersharing services that revolutionized the sphere of transport unchanged for many decades. The only difference between the new model is the addition of a mobile wallet, which excludes the transfer of cash. Add taxi operators one single innovation in their business, the ridersharing companies would not absorb it.

Consumers as the main driver of technology diffusion

But as we have already seen, in the case of the rapid take-off of ridership and other revolutionary technologies, companies that do not keep up with the widely used technologies ultimately run the risk of falling behind. And again, let's pay attention to the blockade. Now it is perceived as something unusual, but it is likely that in a few years or decades this technology will turn into a well-known, common solution. Blokchein has all the necessary elements to have the most cardinal impact on the underlying processes of several industries at once, including mobile payments in their entirety. Besides them, it can provoke changes in approaches to security, direct lending, banking access and a number of other payment-related processes.

Banking, legal practice and others relying on work with publicly available documents or materials of the profession could receive Considerable advantages from the mechanisms of instant verification, and the overall smoothness of the work that block technology offers. But of course, companies should evaluate not only the potential of the new technology, but also the many risks associated with it. To date, there are several obstacles to the widespread distribution of blockades. The point here is not only in security concerns, but also in the slow pace of industry-friendly renewal of industries.

The main driver of the growth and spread of any new technology is consumer demand. An example of crypto currency like Bitcoin shows that as long as there is no demand, the technology or product is in limbo. Companies looking to maximize the benefits of innovation should ensure that the technologies they are interested in will pass the test of time. In addition, they should be fully aware of what investments will be required to obtain the necessary innovative effect and whether the transition to new technologies can actually lead to the desired results.