Visa just announced big changes to its mobile wallet
Facebook/Visa
Visa is making efforts to get ahead in the mobile payments game.
The financial company announced some changes to Visa Checkout, its one-click buy feature, at the eTail West conference. Specifically, the company is trying to make Visa Checkout easier to use.
Visa will optimize the new checkout lightbox for smaller mobile devices. On top of that, users will also experience an easier process when confirming their checkout information, which should make it simpler to change and customize payment information.
The company also plans to integrate a Google application program interface (API) that would facilitate address auto-completion, which would also help users with smaller mobile screens.
Finally, users would be able to take a photo of their cards when signing up for Visa Checkout, rather than having to manually enter all their information.
The company plans to automatically update Visa Checkout with these new features at participating locations in April.
Visa Checkout has already achieved great success, as customers completed 86% of their purchases in the fourth quarter of 2015. These new features should only increase that number if they truly help customers overcome the hurdles of manually entering credit card information when shopping on their mobile devices.
Visa's efforts toward optimizing its mobile payment service is another sign of the way consumers' spending habits are changing. It's not difficult to envision a world in which shoppers reach for their smartphones before they reach for their wallets.
But how will we get there?
John Heggestuen, a managing research analyst on the BI Intelligence research team, Business Insider's premium research service, has compiled a detailed report on mobile payments that analyzes how this landscape will transform in the next few years.
Facebook/Visa
Here are some of the key takeaways from the report:
- In our latest US in-store mobile payments forecast, we find that mobile payment volume will reach $37 billion this year. This is about half our previous estimate for 2015. The downward revision is primarily the result of later-than-expected launches of major mobile wallets from big tech players.
- But by the end of the forecast period in 2019, we expect volume to reach $808 billion, or about 99% of the old estimate. Our forecast is still one of the largest in the industry, and we think mobile payments will catch on faster than other research firms suggest: Mobile payment capability is either already offered or about to be implemented at merchants accounting for a huge chunk of US payment volume.
- The number of people who make a mobile payment at least once a year will grow from nearly 8% of the US consumer population in 2014 to 65% by 2019. The growth in mobile payment users will largely be driven by mobile wallet initiatives from Apple, Samsung, and Google. When these are in place, 90% of the forthcoming smartphones in the US will come with mobile wallets preinstalled.
- Samsung Pay will be a huge driver of mobile payment volume. Unlike Apple Pay, when Samsung Pay launches it will be compatible at virtually every payment terminal in the US, thanks to the company's acquisition of LoopPay. This will make it easier for early adopters to make a habit of paying with their phone.
- The sheer number of mobile wallets available or in the works from Apple Pay, Samsung Pay, CurrentC, Google Wallet, and others will drive mobile payment adoption as well. This will largely be the result of competitive pressure building between the companies and the bandwagon effect. Adoption will be self-reinforcing — the more consumers and retailers that use or offer mobile in-store payments, the more the behavior will catch on among others.
In full, the report:
- Forecasts US mobile payment volume and user base from 2014-2019.
- Provides an in-depth explanation of the assumptions and data behind the forecast.
- Analyses the asymmetric objectives of the key players in the mobile wallet space.
- Provides an update on the mobile payments industry including analysis of Samsung Pay, Google Wallet, and PayPal.
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