Visa Europe: ‘The Next 12 Months are When Mobile Payments Become Mainstream’
June 8, 2015
The payments world will be a very different place by 2020. In recent predictions about biometrics , EMV and online B2B sales , the year has figured very prominently. Visa Europe has added a crystal-ball look at mobile payments in the U.K. to that list. The London-based card network late last week said smart devices will replace cash and cards in the next few years as mobile payments in stores and online will reach £1.2 billion ($1.83 billion) per week by 2020.
A Visa Europe study predicted mobile payments in the U.K will grow 300 percent in the next five years and that nearly a quarter of the country’s consumers expect to spend at least £50 (more than $75) per week via mobile by 2020. The average consumer expects to spend £27 ($41) per week using their mobile device. Looking at current usage and trends, Visa Europe executives think those predictions could be on the low side.
“While we’re excited to see consumers saying they expect to triple their weekly spend using mobile payments over the next five years, we at Visa think those numbers could be rather conservative and that the actual adoption rate will be much higher,” said Jeremy Nicholds, executive director for Mobile at Visa Europe. “This is particularly true when you look at the growth in contactless usage, which saw European usage grow by 2x and spend grow by 3x over the last 12 months. Contactless and online commerce enhancements have been key in paving the way for the next generation of mobile payment technology. The environmental conditions are already in place to meet the demands and expectations for digital payments. It’s no longer a question of ‘if’ consumers will embrace this new way to pay—it’s when—and for us, the next 12 months are when mobile payments become mainstream.”