In “Mobile Payments Convergence: Opportunities at the Intersection of In-person, Online and P2P Payments”, the percentage of consumers who reported using a mobile wallet in the last 30 days has grown from 12 % in 2014 to nearly one in four in 2016, which equates to 40 million Americans who have used a mobile wallet.
Mobile wallet and app providers, present and future, will be focusing more attention on mobile online payments than on proximity payments at the point-of-sale, Javelin predicts. While mobile proximity payments are expected to total more than USD90 billion in 2020, retail payments via mobile apps/browsers are projected to reach USD318.8 billion during the same period. “
After the coming deluge of m-payment choices from banks, merchants, tech companies and device manufacturers, Javelin expects a gradual consolidation to payments wallets and apps that can streamline payment choices for consumers by providing a single app that enables them to buy online and in-store, and send and receive P2P payments.
According to Javelin, consumers will prefer to turn to their primary FIs for this level of functionality, which provides a great opportunity for banks and credit unions that can more easily integrate banking services, such as account balances and mobile check deposit, with other features found in retail apps.
By 2021, Javelin expects banks and card issuers to take control of the wallet space. As consumers come to expect more functionality from mobile wallets, integration with account management and money movement functionality will play into the hands of card issuers, banks and credit unions.
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