According to technology research firm, Gartner, mobile commerce will see a 44 percent increase globally, reaching $235 billion this year. These increases will only continue, forecasting a $721 billion market with 450 million mobile commerce users by 2017. This figure includes transactions such as bill payments, money transfers and consumer payments.
Though mobile payments are expect to reach significant growth in the coming years, users have been slow to adopt mobile consumer payments. Starbucks is the only company that has found significant success. The international coffee supplier saw nearly $500 million worth of mobile transactions in the last year according to Berg Insight.
American consumers have been slow to adopt mobile payments because “the buying experience has yet to be optimized”, according to Gartner. It was also found that because America’s banking system is highly developed, it makes it slower to adapt to new financial technologies. In comparison, over 50 percent of Kenya’s population is using mobile commerce.
Though the US is slow to adopt mobile commerce, the popularity of apps such as Square, PayPal, Venmo and others have made it easier to transfer money between devices. It may seem unlikely for credit cards to ever be displaced as the expected way to pay for goods, but mobile commerce’s projected growth may suggest otherwise.