Forrester: Mobile payments to grow exponentially through 2017
January 18, 2013

The merchant services industry has experienced a rapid evolution regarding the technology used to launch marketing campaigns, process payments and provide loyalty and gift card programs. The massive proliferation of smartphones and tablets, as well as the growing consumer preference to use their devices to shop and carry out transactions at the point of sale, has led to demands for new, unique loyalty programs.

Merchants should consider adopting advanced integrated payment systems to ride this trend and capitalize on new consumer preferences. Small and medium-sized businesses (SMBs) that can accept credit card payments through a variety of platforms, while also incorporating convenient loyalty programs, will be the most competitive in the coming years. This is especially true as more analysts believe that society is moving toward an entirely cashless environment.

Forrester predicts optimistic outlook
The latest Forrester report, titled "U.S. Mobile Payments Forecast, 2013 to 2017," forecast the industry to grow exponentially throughout the next four years. According to the research firm, mobile payments revenues in the United States will increase at a compound annual growth rate (CAGR) of 48 percent between 2012 and 2017, rising from $12.8 billion to $90 billion.

The study also revealedthe major impediments to potential growth in the industry, as well as the variety of drivers that will continue to push mobile payment processing to greater heights. Forrester believe that proximity payments will go from representing the lowest piece of the industry to comprising almost half of all mobile transactions in the next four years, rising to $41 billion in 2017.

The researchers believed this massive growth in the market segment will be driven by improved convenience for both merchants and consumers, as well as more fluid implementation processes of the technology needed to process such transactions. Finally, Forrester asserted that the earlier entrants to this trend that focus on cultivating strategies specifically targeted at mobile payment growth will be the most successful in the coming years.

Easy integration for higher profits
Sage Mobile Payments is one solution that helps SMBs implement integrated payment systems at affordable rates and with maximum convenience. This product is customized to fit the criteria of smaller merchants, and is compatible with the most popular mobile devices on the market, including iPhones, iPads and Android-powered smartphones and tablets. With this solution, merchants can quickly enter the mobile payments game and gain a competitive advantage over slow-adopters in their industries.

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