The UK Mobile Payment Market

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With 450 million people expected to use a contactless payment solution by 2020, more and more consumers are reaching for their smartphones to pay for small items such as their daily coffee fix to savings related purchases such as a new car. By this time, the average consumer is expected to spend at least £25 per week through mobile payments with almost 25% of us directing electronics and clothing purchasing to our apps. With this in mind, what are the mobile payments the UK has to offer? How many different consumers can we reach with this new technology?

Which mobile payment systems are ideal for UK business?

The relatively new market leader in this era of digital purchasing is currently Apple Pay. Introduced in July 2015, customers can create a digital wallet that synchronises purchases to payment cards, allowing buyers to pay for items with a tap on the iPhone screen or via the new Apple Watch. For international customers however, Transferwise is seen as the biggest supporter of mobile card payments in the UK by overseas visitors. It allows customers to transfer money, thus enabling them to pay for those last minute conference fees or dinners out with business clients. Of course, for businesses it really differs based on your needs and consumer base, so it’s worth looking into a TMS mobile point of sale and other options like this carefully. For those with an economics mind-set, apps such as Robinhood and Stripe are funded by capital and investors who believe in this new step towards a digital, cashless future.

What are the challenges in the mobile app payment market?

However, there are also various downfalls and hurdles to overcome with mobile payment apps in the UK such as new regulations set to cover the increasingly competitive market. Vendors in the UK who offer finance must now be licensed and so the search for easily-accessible and trustworthy services can become more complicated. Another hurdle for UK merchants is the competition from large scale payment services as the majority of customers have stated a tendency to rely on only two payment apps. Therefore mobile payments in the UK must stand out to customers with clear explanations and be readily usable or they will be abandoned just as the pound notes, tarnished coins and tatty loyalty cards before them.

Mobile payment apps

With these reservations at the fore-front of our digital vision, it comes down to the most secure service which has most customer satisfaction and here we look to Oxcept. The innovative idea created by an Oxford professor has all customers’ dreams in mind as it enables the creation of secure, immediate connections from one device to another with speedy and safe purchases as the outcome. Drawing on security protocols from the military and an understanding of the hectic life of the average consumer, Oxcept is predicted to enable billions and billions in spending.

In a further step towards mobile payment security, this mobile payment system in the UK has further contextualisation protocols where vendors can assure authenticity of the buyer through their position on Google maps if they are grabbing a quick coffee break or face recognition for that impulse plane ticket. The consumer and vendor then enter into a secure connection provided by a four-digit pin, enabling them to get their hands on their product faster and securely. This is vitally important in this great leap for technology as although we are replacing the old fashioned wallet, we must make sure that the owner is verified and trustworthy.

While we are thinking of modern methods of mobile payment in the UK, the ultimate question then remains of which service is best for our UK customers in line with regulations, security and ease of access. While we are enjoying the simplicity of ordering our morning latte with a tap of a smartphone, we would not want to give that treat away to the finder of a stolen phone. This highlights why it is so important to choose a company to align with carefully.

To conclude, we hope that this guest post has given you a good understanding of the current state of the mobile payment market in the UK. This is something that is only going to get bigger and bigger.

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