Mobile payments will form an increasingly important cornerstone of the UK economy, according to a new report from the Centre for Economic and British Research (Cebr).
The research team has claimed that by the end of the current decade, there will be as many as 20 million adults using their mobiles to pay for goods and services.
What’s more, the study said that the value of such purchases will triple to reach £14.2 billion in 2018, while it is speculated that mobile payments will represent 1.4 per cent of consumer spending by 2020.
The report outlined four specific ways in which mobile payment will be beneficial for consumers. These are: helping to reduce fraud; lowering transaction costs; giving consumers greater control over their own spending; and reducing cash flow problems.
And while it is easy to focus attention on the purely monetary benefits that result from the mobile payments, it is important to recognise that the technology is also helpful on a more practical level.
This is especially true in the sense that the technology can allow consumers to perform all sorts of tasks at the click of a few buttons.
For instance, consumers are able to check their balance very easily and just generally ensure that they are better informed about the overall state of their finances.
Reflecting on the data, Douglas McWilliams, the Executive Chairman of the Cebr, said, “It’s clear that the UK economy stands to benefit in multiple ways from the widespread adoption by consumers of mobile payments”.
He added,“But for the full potential to be unlocked, consumers need to be reassured that mobile payments are hassle-free, safe, secure and widely accepted. That will require strong cooperation across the financial services, retail and payment industries.”
Meanwhile, Peter Keenan, Chief Executive of Zapp, observed that the report is the first to take a holistic view of the economic impact of mobile payments.