Here’s a prediction: Over the next five years, we think there is going to be an increased need for mobile wallet merchant accounts.
For the last several years, we had read about U.S. consumers shunning mobile wallets, instead remaining steadfast to traditional credit card payments and cash. While credit cards and cash are still the dominant preferences for most Americans, mobile wallets are finally growing steadily, say studies by two payments industry heavyweights.
We liken mobile wallets to the sport of soccer (which we love here at Instabill). The naysayers will always denounce the sport, calling it forever the sport of the future in the U.S. We disagree. Soccer is here. Though it may never surpass the NFL, MLB, NBA or NHL, it has solidified its place, it is staying and it will grow consistently.
The same can be said for mobile wallets.
Still don’t believe us?
Among the studies we’ve read include that from banking giant Synchrony, who put forth the evidence. According to its study:
- The number of retailer wallets consumers are using has doubled from an average of two to four from one year ago.
- 83 percent of consumers who have mobile wallets and apps on their smartphones indicated they are happy and satisfied with their functionality.
- Consumers are using retailers’ mobile wallets and apps for three reasons:
- 60 percent of consumers to browse products
- 50 percent to take advantage of deals, coupons and loyalty programs
- 49 percent to make purchases
- By 2025, 60 percent of consumers surveyed believe mobile wallets will completely replace physical wallets (of that, we’re not so sure).
- It is millennials that are leading the mobile wallet movement, says the survey: 61 percent of ‘older’ millennials are willing to completely swap their physical wallets for mobile wallets on their smartphones (only 42 percent of the ‘general’ population is willing to do so).
Based on the aforementioned figures, consumers are increasingly turning to their smartphones to shop and browse. The result will be an uptick in the need for mobile wallet merchant accounts. While affordability of an app or mobile wallet solution may be an issue for SMEs, exploring the option, at the very least, is encouraged based on the results of the survey.
Mobile wallets more widespread than consumers think
As we continue advocating for mobile wallets, we think many consumers are using them and may not realize it.
- Do you pay for your Starbucks or Dunkin’ Donuts coffee with an app?
- Do you use iTunes?
- Do you use PayPal, ApplePay or SamsungPay?
If you answered ‘yes’ to any of the above questions, you’re a mobile wallet user.
Lots of options for mobile wallets — and they’re thriving
Remember the days when you needed a $10 bill from mom and dad to go to the movies with friends? When you were in college, how the checks couldn’t arrive through the mail fast enough? Nowadays parents simply transfer money into a child’s mobile wallet account whether it’s PayPal, Venmo or the app of your family bank, in a matter of seconds.
Additionally, most social media apps have launched a mobile wallet option: Snapcash (via Snapchat), Facebook Messenger and Google Wallet (through Gmail) among them.
Instabill offers mobile wallet merchant accounts
Instabill has enjoyed a longtime partnership with an acquiring bank which offers mobile wallet merchant accounts and welcomes high risk businesses seeking to offer e-wallet solutions including (but not limited to):
To get the mobile wallet merchant account started, click the button above or simply telephone us at 1-800-530-2444 to speak directly with a merchant account manager.