Mobile Payments in US to Reach $3 Trillion Within Two Years
It’s easy to dismiss the United States as a growth market for mobile payments. While there’s still plenty of user base out there that prefers cash and will use it until the last bill crumbles to dust, there are also still a hefty number of mobile payments users. A new report from Market Research Reports Search Engine put some numbers to the concept, and the numbers will be impressive in their own right.
The biggest number here is a comparative: in 2015, mobile payments in the US represented $550 billion. That’s good by most any standard, but the growth expected is staggering. By 2020, that number is projected to hit $2.8 trillion. That represents a compound annual growth rate (CAGR) of 39.1 percent, which is far beyond most any but the most unlikely investments.
If you’re impressed by that number, however, temper it with the knowledge that in some places even the 2020 figures are meager by comparison. China represents $5.5 trillion in mobile payments use as of right now, a combination of various societal factors like a comparative eschewing of the personal computer in favor of the mobile device, as well as a near-ubiquity of locations that accept the system.
The US, meanwhile, is catching up; a growing number of locations that accept mobile payments coupled with an increasing number of crowd funding operations, robo-advisors, and marketplace lending systems are adding up to help drive mobile payments’ overall use in the US.
One of the biggest problems in getting the US to turn to mobile payments, aside from perceptions of security, is overall perception of usefulness. Mobile payments are great, but in some ways they’re the equivalent of what “Rick and Morty” called “…using Disney Bucks at a Caesar’s Palace.” The reference basically means they have no value outside of their intended use point, so why even try? No one could really use mobile payments as there weren’t many places accepting them.
That’s changing, and with that change comes the ability to exploit the technology accordingly. As use cases increase, users can take advantage of the store—and sometimes deal—locator tools, reward point management functions and more. It’s a good deal all around, and one that should pay off for the average user.