Constant screen time has changed the way that we live day to day in our society. It seems that everyone has a smart phone or tablet, or something that connects them to the web. Businesses are finding ways to make their services more convenient by taking advantage of ubiquitous internet access. The newest trend is mobile payments.

By 2016, Gartner researchers predict that 448 million users will make mobile bill payments. Asia and Pacific countries will account for the majority of usage. The market, they predict, will be worth $617 billion.

How People are Using Mobile Payments

Most mobile transactions take the form money transfers and merchandise purchases. However, travel and parking are increasingly popular mobile payment markets. Some international markets are already reaping the many benefits, as mobile payments have become a way of life.

Growing Popularity

According to ComScore, in just one month of 2010, 9.8 million Japanese mobile subscribers used a mobile wallet to make a purchase. In 2013, another survey of consumers showed mobile wallet popularity rising in the U.S. ComScore reported that “52% of consumers say they’d prefer to make purchases using a digital wallet both online and in a physical store.”

The Main Barrier — Trust

Even with the uptick in popularity over the last few years, consumers are still hesitant to trust a digital payment option. Companies such as Visa, Mastercard, and Google are struggling to attract new business. Consumers are slow to change their habits and commit to using the mobile payment option as their first choice.

The Advantages

The mobile payment is a great innovation that can help consumers in the long run. By eliminating the hassle of paper billing, mobile payments keep track of payments in one spot. Consumers can use their digital wallet to organize their payments, make mobile transfers, and pay bills on a recurring schedule. Now consumers can avoid late fees and pay bills more efficiently.

Both consumers and businesses will be able to keep better records if they commit to using the technology to its full potential. The trend will continue to grow as consumers learn to trust the technology. It will be interesting to watch how mobile payments rise in the future!

PHOTO: Richard Tanzer Fotografie / CC 3.0