How Mobile Payments have Evolved Overtime

May 09

How Mobile Payments have Evolved Overtime

In our world today, it has become so easy for us to make purchases. Mobile payments have evolved into a quick click of a button to obtain your needs and wants. It might come as a surprise, but the evolution of mobile payments goes back a very long way. A few centuries ago, mankind was still using bartering with meat, berries and grain as a method of making payments. Animals are considered to be one of the oldest forms of currency; camels, sheep and cows were commonly used.

Payments evolved from “mobile” livestock, to paper money in China in 960 to the first modern credit card in 1958. One of the first introductions of M-commerce was when Coca-Cola set up machines in 1997 that had the capability to accept payments via text messages.  Today, mobile payments have evolved into different types that offer customers a wide-range of options with seemingly endless possibilities.

With the mobile payments industry expected to reach $670 billion this year, this form of payment is a big part of consumers’ lifestyles. Currently, 40% of North American consumers have used some form of mobile payment. While Asia has the largest number of users, Africa accounts for 52% of all mobile money transactions. With the expectation that there will be 447.9 million mobile users worldwide by 2016, the integration of mobile payments has become an important and crucial tool for businesses.

Consider the infographic below by emerchantbroker.com. There are numerous types of mobile payments methods that are used today: in-app payments, mobile point of sale (MPOS), online payment services, mobile P2P transfers, Bluetooth low energy (BLE) and near field communication (NFC). In-app payments, MPOS and online payment services allow the consumer to purchase goods while mobile P2P transfers are used for the purpose of bank transfers.

BLE and NFC are the wireless communication technologies that are found on most smartphones today; these technologies were designed to enhance the in-store experience of customers. While BLE is good for high-traffic or public areas, NFC works best for one-on-one interactions.

Mobile payments continue to evolve at a rapid pace. Consumers are able to make their purchases from the convenience of their mobile device while also receiving updates, coupons and more. With all of the advances in technology and the increase in consumer participation, who knows where mobile payments will go next.

eMB-MobilePaymentsCl-2