Business Development Director Noel Smith
The concept of a cashless society has been discussed in developed countries since the 1950s. According to some analysts, the UK could phase out cash as early as 2030.
Given that roughly three-quarters of people in developed countries now own smartphones and that consumers—mostly tech-savvy people under 40—now regard mobile money as a secure and practical payment option, this projection appears all the more plausible. Add to that the difficulties posed by COVID-19 in 2020, which has increased demand for a completely contactless point of sale in an effort to stop the virus’s transmission.
We at TPL predicted that mobile money would be a significant, if not the primary, growth factor of non-cash transactions in the upcoming years. Mobile payments were already expected to soar before Covid-19, and now businesses are looking to accelerate their mobile wallet strategies to capitalise on the surge in demand.
But if now is the time to profit from this rapidly expanding market, companies must refine their strategy to take into account not only the current market but also what the mobile payments landscape might resemble in three, five, or ten years. (A landscape that is not without difficulties, which is why it is essential to draw on the expertise of a reliable partner.)
It’s crucial to give your mobile wallet the attention it deserves.
In light of this, even though we are all aware of how quickly the market is developing, the message for mobile payment solutions is actually “less haste, more speed.” TPL works with a number of reliable partners, each with their own specifications and deadlines, to provide an end-to-end payment solution. The scheme you choose can have a big impact on budget, timeframes, and whether or not your business goals are attainable. Mobile adds another layer to the important decisions to be made.
The cost of protecting client data is one example of the extra challenges that come with adding mobile payments in any scheme. The market underwent a significant transition in 2015 when tokenization was introduced, although the prices and timelines involved are very different. Consumers could now use digital wallets safely and securely. Location is another important consideration because tokenization costs might increase when geographic reach extends across many country ranges. This makes it ideal to make these choices while having the advantage of outside expertise.
The removal of dependence on the physical card is a major advantage of mobile money. In fact, adopting a mobile-only strategy could result in significant cost savings for some businesses. On the other hand, company models that simply rely on credit cards will very soon face competition, as mobile payments will soon become a necessary component of all payment products. Again, it is crucial to have a strong payment strategy that takes market volatility into account.
Due to all these reasons, it’s critical to maintain an open mind and be ready to adjust plans and objectives as you go. But consider that sometimes we are at our most inventive when we are constrained by a framework. The mobile payments industry is highly regulated, competitive, sophisticated, and expanding, therefore those that can adapt and think outside the box will prosper.
The pandemic continues to influence the evolution of the payments eco-system at a rate that no one had anticipated for, but we knew it would happen eventually as we consider the effects of Covid-19 and its potential future effects. It is therefore even more crucial to choose an experienced and proactive service aggregator who can offer insight and vision to attain the product’s full potential – in both the worlds of today and tomorrow – if you want to be a success story in this disrupted industry.
