Mobile payments set for massive takeoff by 2018

January 2016
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According to market research company Gartner, 50 % of consumers in mature markets are likely to be tapping smartphones or wearables to make mobile payments by 2018.

Innovation in apps, mobile devices and mobile services are impacting traditional business models, especially with regard to how people use personal technology for productivity and entertainment.

Gartner identifies three types of mobile payments or mobile wallets: beyond the smartphone and wearables sector that features Apple Pay, Samsung Pay and Google Pay, there are also branded mobile wallets from retailers and banks or credit card companies. Starbucks, for example, was one of the first to rollout its own mobile wallet.

However, mobile payments relying on NFC technology (Apple Pay, Samsung Pay and Android Pay) will be limited in the short to midterm due to a lack of partnerships between retailers and financial organizations, as well as consumers seeing little value in such payments.

Gartner also predicts that 75 % of TV-style content will be watched through application-based services in mature markets by 2018.

Moreover, Gartner predicts less than 20 % of users in mature markets will subscribe to mobile data-only connections by 2019. Mobile data consumption is rising as the technology improves. Although most of the data is consumed on smartphones, communication service providers are also pushing mobile data-only connections alongside Wi-Fi broadband.