Survey projects mobile payments will reach $1 billion this year
July 12, 2013

With more consumers investing in smartphones and tablets, mobile payments have recently made strong improvements. Smaller businesses with payment integration for accepting mobile credit card payments may notice more customers utilizing retailers' portable plastic payment reader at the point of sale. According to a new survey by eMarketer, retailers that have already invested in a mobile POS will see greater sales thanks to the payment innovation. With 2013 set for widespread mobile payment adoption, investing in the new POS option can help merchants improve their bottom line.

US market ready for mobile transactions
In its latest forecast, eMarketer estimated payments through a portable device will top $1 billion by the end of 2013 and will reach $58 billion by 2017. The research and analysis provider looked at the current number of contactless purchases and digital transactions conducted through mobile electronic as well as what types of payments may become standard for the POS method. In 2014, mobile payments may reach $2.6 billion before skyrocketing.

The study estimated low-dollar purchases, which have traditionally been dominated by cash, will soon become the most common type of mobile payment. Items that need to be bought on a daily basis, such as groceries or coffee, may drive mobile payments to be widely adopted in the U.S. However, eMarketer suggested the expansion of the portable POS method relies on small and medium-sized retailers implementing it. In fact, the research firm advised local businesses to find long-term mobile payments solution, as innovations such as near-field communication may not be the best option for smaller merchants. Mobile payments should be easy to use to offer value, and with experts claiming NFC technology is not the most reliable method, eMarketer forecasted alternatives will gain prominence among retailers and consumers.

"Most researchers expect global mobile payments will reach transaction volume in the hundreds of billions of dollars by 2017," eMarketer said. "Despite these generally optimistic projections, discrepancies in scope, as well as downward revisions of past forecasts, underscore just how much the market is still in its early stages."

Although mobile payments are still relatively new, smaller merchants are set to drive the payment processing innovation into the future. However, it all depends on current trends in the industry, such as NFC technology, which may disrupt the rapid growth.

Nexus: G-WEBCD1