Much ink has been spilled, and rightly so, on the topic of mobile, its potential and role in the technological revolution, depending on industry, region, market vertical and/ or target audience. This week‘s roundup focuses on the most recent research and announcements that support or contradict this statement.
27% of millennials plan to use mobile as payment method in the next 10 years
Millennial Generation consumers are said to be among the most willing adopters of alternative payment methods. A recent study by Compass Plus, an international provider of electronic payments reveals that 27% of millennials plan to use mobile as main payment method in 10 years, as compared to only 6% in 2016. Worth mentioning that mobile payments came second overall, behind using multiple methods (54%).
“With over half of respondents stating that they will be still be using multiple methods to pay in the future, mobile still has plenty of consumers to win over if it is to become the go-to way to pay.” – Maria Nottingham, Executive Vice President, Compass Plus
A more optimistic picture in the gaming context
Great news for the mobile gaming industry, as smartphones are set to become the new gaming powerhouses, according to latest research by Arm and Newzoo’s Global Games Market Report. The global share of high-end smartphones is growing fast, allowing for more sophisticated and realistic gameplay. In June 2018, there were already one billion high-end smartphones in use globally (up 76% YoY), with bigger screens also becoming more popular.
Overall, mobile is expected to account for 51% of the total games market by the end of 2018 and will become a USD 100 billion market by 2021. The main factors that will boost this growth are the demand for increasingly core, immersive experiences on mobile and the growth of eSports and competitive gaming.
“The rise of mobile gaming has been fueled by the availability of powerful smartphones offering a premium gaming experience, regardless of the price point.” – Pablo Fraile, Director of Developer Ecosystems, Arm
Indian market developments:
Google rebrands payments app Tez
Before the official rollout to other countries, Google is beefing up its Indian payments app Tez. Launched in September 2017, Tez uses India’s Unified Payments Interface to enable smartphone users to send and receive money, as well as pay for goods and services both offline and online.
Tez is now being rebranded as Google Pay. The app has already been used by 22 million people and businesses to make more than 750 million transactions worth over USD 30 billion annually. Google’s moves in India could pose a threat to Paytm, the local digital payments provider, so probably the latter will come up with a counter-strategy any time soon.
eCommerce market to hit USD 200 billion by 2026
Online retail is set to continue its growth in India to such a speed that market could reach USD 200 billion by 2026, as Morgan Stanley estimates indicate. That market will grow at a 30% compound annual growth rate until then. According to Euromonitor, online sales in India are currently growing about 35% a year, driven by a rising middle class, demonetization and an increasing push toward urbanization.
“India is one of the most attractive retail markets in the world, given its size and growth rate” – Walmart CEO Doug McMillon, cited by PYMNTS.com
Meanwhile in the US
In the US, mobile commerce conducted via smartphones will account for USD 117 billion by the end of 2018, representing nearly 23% of online retail sales and 3% of all retail sales, as a new report from research company Forrester indicates. However, after a 41% jump in direct sales through smartphones from 2016 to 2017, mobile commerce growth between now and 2022 is expected to slow down, occurring at a compound annual growth rate of 16%, Forrester said.
“By researching products, comparing prices and making payments, shoppers have made smartphones an integral part of their customer journey.” – Forrester Research
Interested in other recent industry developments? Here are some similar relevant international news stories published on our blog: