New Report Finds Mobile Payments Reshaping the Payments Landscape

October 29, 2013 – A new report from BI Intelligence finds that mobile transaction volume is growing explosively and reshaping the payments industry, particularly credit and debit card payments. On the consumer and merchant side — through apps, scannable QR codes, and attachable card readers— mobile devices are replacing traditional credit cards and credit card readers. As the industry consolidates and awareness increases, mobile payments transaction volume is poised to make big leaps, the report finds.

Other Key Findings Include:

• The U.S. is still lagging behind, but growth is skyrocketing: Mobile transactions will account for about 2% of all credit and debit card volume in the United States in 2013. But, since 2008, mobile transactions have enjoyed 118% annual average growth. Markets in Africa and Asia-Pacific actually see a much larger share of mobile-driven transactions.
• Consumer uptake has exploded: Smartphone users are quickly adopting mobile wallets, payments apps, and QR-scanning apps to facilitate offline and online purchases.
• The industry is ripe for consolidation: Payments app developers, niche technology providers, and small payments start-ups are enjoying massive growth and helping to push forward innovation. Look for larger digital payments companies to acquire these upstarts. At the same time, mobile payments solutions continue to proliferate, so the market is no less crowded.
• The industry is still in a state of flux. New technologies are emerging, while once-promising tools are sputtering: Take near-field communication, or NFC — uptake has failed to impress. Now, Apple’s Bluetooth-powered iBeacon technology may challenge NFC head-on.

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