Report: Mobile CNP Payments Could ‘Subsume Any Other Payment Path’

Oct. 22, 2015

Report: Mobile Online Payments Could ‘Subsume Any Other Payment Path’ While mobile wallets enabling payments at the POS (think Apple Pay, Android Pay and Samsung Pay) are garnering most of the headlines, online mobile commerce continues to dwarf in-store mobile payments. Given the growing adoption of smartphones globally, the fact that mobile surpassed desktops and laptops as the primary means to access the Internet two years ago (with the gap widening), tokenization capability that is being built into the mobile payment ecosystem and the in-app capabilities of the mobile wallets, Boston-based consultancy Aite concluded “it is not unreasonable to envision a future in which mobile online payment is the ‘business as usual’ option, supplanting traditional POS at retail and e-commerce online.”

The company noted that m-commerce growth from 2014 to 2015 has been “dramatic,” with sales of the top 500 mobile retailers surging 68 percent year over year. Global mobile commerce reached $272 billion last year and Aite expects that number to grow to more than $1.25 trillion by 2020.

Given that environment, Aite advised merchants to be ready. And, while mobile gives merchants “significant opportunities to change the conversation with customers,” there are real risks if merchants don’t understand the evolving ecosystem and adapt to a new reality that elevates card-not-present payments to a central role in all commerce.

“There has never been a convergence of technology, economics, and demographics like this one,” the report said. “Mobile online payments are at the cusp of a growth curve that could eventually subsume any other payment path, and while that end point may be clear, the complexity in the space right now makes it difficult to see how to arrive at that destination.”