Visa Europe, a payment technology business operated by a consortium of banks and payment service providers has recently conducted a study on the emergence and adoption of mobile payments and published the findings in Mobile Money Report. This mobile money research conducted across 6 countries in Europe considered a sample size of over 2000 customers in each country.
The Mobile Money report concludes that payments through mobile phones and other smart devices will be replacing cash and card payments in the United Kingdom by the year 2020. The research falls in lie with the current consumer trends visible in the country. Currently one out of 12 people on average in the UK pay with their mobile phones. Thanks to the increasing smart phone penetration and increasing popularity of Bitcoin, mobile payments are slated to increase to over 60% by the year 2020, where the consumer uses mobile payment methods for transactions at least once a week.
It is also estimated that the increase in average weekly spending among mobile payment users will result in steep growth in the mobile payments market, to reach an estimated value of about 1.2 billion GBP a week by 2020. Of all the interviewed respondents, about 25% of them expect to spend over 50 GBP by the end of this decade. While the current average weekly spending of mobile payment users in UK stands at 17 GBP , it is estimated to hit 27 GBP by the same time.
In almost all the cases, it is found that people currently use mobile payments to pay for high value products like consumer electronics, clothing and fashion accessories. Other things bought using mobile payments includes application and in-app purchases. In terms of technology adoption, the rise of mobile payments has come a decade too late, and the latest innovation – Bitcoin is making a headway by getting more people to start using mobile phones.