Brits To Spend £1.2bn A Week In Mobile Payments By 2020

The report claims consumer adoption of mobile payments will grow faster than ever in the next five years, with six in Brits expecting to use their mobile devices for payments at least once a week by 2020.

The “Mobile Money” study – which was conducted by Visa Europe between April and May 2015 in Finland, France, Germany, Poland, Spain and the U.K.- revealed that smart devices will replace cash and card transactions as the U.K. mobile payments market is set to reach £1.2 billion a week by 2020.

The European branch of the American financial services company has found, through extensive surveying, that 25 per cent of United Kingdom consumers believe that by 2020 they will spend more than £50 per week through phone transactions. The average shopper expects to spend 27 pounds ($41) via mobile each week by 2020, an increase of 10 pounds ($15) from today, according to the report. “This is particularly true when you look at the growth in contactless usage, which saw European usage grow by 2x and spend grow by 3x over the last 12 months”.MasterCard built the foundation for secure mobile transactions, having introduced contactless payments more than a decade ago and delivering a complementary digital enablement platform in 2013 that is driving today’s mobile payment solutions.

“The environmental conditions are already in place to meet the demands and expectations for digital payments”. Visa observed that a growing number of consumers are buying higher value items such as electronics (23 percent) and clothes (22 percent) ranking among their Top 5 most purchased m-commerce items. This development provides MasterCard cardholders with even more options for paying on the go using their choice of mobile device.The ubiquity of mobile phones is changing the way consumers pay.

When looking at the main concerns about mobile payments, a third of respondents admitted that they did not know enough about it. As with other new technologies, this has resulted in apprehension around issues such as privacy, fraud and security.

This could be about to change, however, and Sharma predicts that mobile payments will boom following the arrival of Apple Pay and Android Pay in the United Kingdom.

While contactless cards have proved popular with London commuters, people haven’t been so quick to use their smartphone to pay for travel.

SOURCE:RAPID NEWS NETWORK