According to a study on trends in technology, media and telecom published by Deloitte last month, in 2015, 10% of the 600 million smartphones in the world will be used to settle in store purchases at least once a month. This represents a 1000% increase compared to 2014: the digitalization of the checkout phase is up and running.
In France, there are now 250,000 points of sale that accept contactless payments (by mobile or card), which equates to around one in every ten traders. Clearly this form of payment is beginning to establish itself seriously.
In May 2014, Crédit Mutuel-CIC presented the mobile shopping application Fivory. It allows not only to settle online purchases on e-commerce sites, but also to make in-store payments via contactless technologies such as NFC or QR code. It may also be noted that Orange, in partnership with Visa have launched the mobile payment service, Orange Cash. Or furthermore Auchan who offers the service Flash’N Pay, an electronic wallet which may be used to pay at store checkouts with one’s Smartphone via a QR code issued by the cash register and scanned by the phone.
Embedding these new payment methods into every day life
In Nancy, PayPal has launched an application for customers of thirty restaurants. The application allows them to settle their bill on their mobile without having to wait for the waiter. In addition to the time savings, the convenience and the fluidity of the system, another benefit to the restaurant has to be noted. They can better understand their customers by pushing deals on the application and providing them with personalized services. Paypal has been involved with in store mobile payments for two years and their solutions are already operating in 20 000 US points of sale and 2,000 points of sale in the UK, Germany and Australia.
While these experiences are national, they are only based on agreements with a limited number of participating businesses. The example given above of Nancy is the first time that in store mobile payment has been expanded to a whole city, bearing in mind that the restaurants involved will be joined by others. The purpose? Working with local, independent shops and embedding these practices into the every day life of the population.
The Wallets will therefore no longer be confined to remote payment but will expand to physical trade, which represents no less than 90% of all sales. Web giants are ready to do battle over this highly interesting market.
Old habits die hard, and as with all innovations, mobile payment store will not revolutionize the world of payment in a year, even if they seem to be taking off. As a comparison one might recall that the credit card took more than thirty years to win with over the French. Patience is the mother of all virtues.