With the last days of the year rapidly approaching we would like to express our thanks to all the readers who followed us in 2016, and our hope that we will see you again next year. This is a time when we celebrate and appreciate all the wonderful things that we have, and also a time when we think about what we can look forward to. So in keeping with the tradition, we would like to wish everyone happy holidays and humbly share a handful of mobile payment predictions for the coming year:
- Adoption of m-payments by consumers worldwide will continue at a healthy clip, though as we have previously argued, this growth will reflect incremental rather than revolutionary change. Companies will need to up their consumer education efforts, and initiatives related to loyalty and reward programs will remain key in attracting new users.
- M-payment companies will continue to focus on security, while media outlets will continue to conflate and confuse on the issue.
- Market players will continue to strive to find the right balance between competition and cooperation, but as payments become a utility, it will ultimately come down to providing value-added services that address actual consumer needs.
- For its part Asia will continue to lead (and amaze) the world with outstanding growth rates in mobile payment services, notably building on the successful mobile commerce applications we saw rolled out recently.
- The coming into force of the European Union’s revised Payment Services Directive (commonly referred to as PSD2) as well as further movement towards a common instant payments system for the Single Euro Payment Area will together mean the emergence of a new payments landscape on the “old continent.”
- While more and more players will enter the US market, a growing move towards common standards will result in greater interoperability between various solutions, ultimately benefiting consumers. But until companies can get merchants on board to the point of ubiquity, user adoption will continue to lag behind expectations.
- Despite the considerable hype surrounding the use of artificial intelligence for payments (with Facebook and MasterCard making headlines recently) 2017 is unlikely to be the breakthrough year for this technology. Social platforms, on the other hand, will most definitely make significant advances in enabling commerce and payments.