Mobile Payments to Overtake Credit Cards by 2019
The mobile payment takeover may come sooner than expected. According to a report from the United Nations, more people throughout the world will be using mobile payments than credit cards by 2019.
In developed countries, credit card transactions are expected to drop to 46% by 2019 (down from 51% in 2014) as more people turn to their phones to pay for goods and services. E-Wallet systems such as PayPal and China’s Alipay are driving a conversion to e-payments. According to TechCrunch, these services handled nearly $3 trillion in transactions in 2016.
China is leading the way toward mobile payment adoption. The mobile payment market in China reached $3.5 trillion in the second quarter of 2017, up 22.5% from the previous quarter, according to South China Morning Post. In fact, 68% online shoppers use WeChat Pay or Alipay in China.
In developing nations, cash is still the preferred payment choice.
The United Nations Conference on Trade and Development (UNCTAD) also said in its “Information Economy Report 2017: Digitalisation, Trade and Development” that e-wallets are “particularly popular” for cross-border purchases.
“This technology can make online payments safe, and being peer-to-peer, it is less expensive than intermediated payment platforms,” the report said.