Written By: Jayesh Nema, Director of Product Management at Blackhawk Network India
The world of mobile payments has undergone a profound transformation in recent decades, attributed to several factors including security, ease of use and customer loyalty, etc. Accelerated by customer needs and external factors such as the pandemic, companies are looking for ways to innovate across all facets of the customer journey, including payments, which have remained relatively unchanged for many years. Notably, the pandemic has played an active role in replacing outdated payment methods that are unable to offer comparative options in the customer experience journey. The further adoption of mobile payments among modern online consumers has catapulted the demand for innovative payment options and mobile technology is expected to play a crucial role in implementing the process.
Let’s take a closer look at a few factors that explain how mobile technology plays such an important role in payment innovation:
- Unstoppable mobile and Internet penetration: Affordable mobile devices and inexpensive data plans have integrated a significant portion of India’s population into the digital world. The number of active internet users in India is expected to reach 900 million by 2025. As much as the upsurge in digital consumers, the growth of mobile technology – with plans to roll out 5G in 2022 – will influence the behavior of consumers in general. -à-vis-à-vis choices and expectations. Therefore, the rapid advancements in mobile technology and the digital consumption landscape present a two-way growth opportunity for payment providers to innovate new ways of paying and processing in the future.
- Government pressure in favor of digital: Empowering people to pay and transact on digital platforms is the backbone of the “Digital India” initiative launched by the Indian government, a progressive catalyst towards the achievement of a money-driven economy. digital. With rural India’s digital population set to exceed that of urban areas by 2025, the government continues to invest in fintech organizations and startups to spur innovation and promote new areas of technology mobile while driving digital payment adoption and customer awareness. beyond the urban spheres.
- Charting the path to the future: As growing mobile and internet penetration has fueled the digital consumption landscape, 2020 has led to an exponential increase in digital payments and the adoption of online services, with more consumers than ever before engaging in e-commerce and the digital landscape. The rapid demand for contactless technology has driven QR codes to conquer the world of payments, becoming the new favorite among consumers. The popularity of code scanning and advancements in mobile technology are paving the way for merchants to explore different ways to delight customers. It will be interesting to see how payments and mobile technology together disrupt different industries and how they work.
Creating a mobile and inclusive omnichannel experience is quickly becoming a necessity as businesses transform to meet changing digital standards. A mobile-centric approach is a clear path to achieve this. Due to the significant growth in mobile payments, companies are investing heavily in mobile payment technology. The Indian government is also encouraging fintech players to build accessible infrastructure in Tier 2 and Tier 3 cities in India. Activating the mobile payments ecosystem will create greater opportunities for providers to leverage cutting-edge technologies to define the future payments roadmap.
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