Report: Mobile Purchases to Triple by Decade’s End
Nov. 7, 2013
By the end of this decade, 20 million U.K. consumers will be using their mobile devices to make payments totaling £14.2 billion ($22.8 billion), according to new research. The report, commissioned by mobile payments provider Zapp and compiled by the Centre for Economic and Business Research (Cebr), said that by 2020, mobile payments will account for 1.4 percent of total consumer spending in the country.
In addition to an expanding share of the payments pie, the report’s analysis contends increasing adoption of mobile payments will result in several consumer benefits. Cebr found that mobile solutions that incorporate PIN identification will reduce fraud, transaction costs for merchants will decline, consumers will experience greater control of their financial lives and cash flow will improve.
“It’s clear that the U.K. economy stands to benefit in multiple ways from the widespread adoption by consumers of mobile payments,” said Douglas McWilliams, executive chairman of Cebr. “But for the full potential to be unlocked, consumers need to be reassured that mobile payments are hassle-free, safe, secure and widely accepted. That will require strong cooperation across the financial services, retail and payment industries.”