Worldpay predicts that the digital payments market — including Apple Pay — will leave its growing pains behind in 2016.
The global payments company thinks next year will herald "the third age of digital payments" now that eWallets are growing in popularity, NFC offerings from technology vendors like Apple, Samsung, and Google are fighting for mass appeal, and both banks and brands are rolling out their own mobile payment apps to compete for consumer loyalty. Apple CEO Tim Cook has already forecast the death of cash by the time current university students have a family.
“The first age of digital payments kicked off with the eCommerce boom in the early 2000s when companies like PayPal and AliPay introduced eWallets to the mainstream,” says Kevin Dallas, chief product officer, global eCommerce, Worldplay. “The second phase coincided with the rise of the smartphone at the beginning of the decade, and we've since seen a proliferation of new mobile apps that quickly raised the bar for convenience in payments."
2016 will also be a breakthrough year for Alternative Payment Methods (APMs), Worldpay predicts. In its latest Global Payment Report, Worldpay found that APMs inched past card payments for the first time ever with 51 percent of market share. Worldpay predicts this gap will widen in 2016 and beyond as more consumers opt for the convenience of "e" payment options over traditional plastic.
“However, with so many options being rolled out so quickly, a sense of app fatigue has begun to set in leaving both consumers and merchants unsure of which approach is best and questioning the convenience of using multiple eWallets,” Dallas says. “I expect the next few years will see a consolidation of the market as the public hones in on their preferred payment methods and conscientious merchants feel more confident buying into technologies that their customers have already embraced."