Estimates Say the Mobile Payment Market is Hitting $780 Billion in 2017
According to a new report released by TrendForce, we’re going to see huge growth within the mobile payment market this year. The report mentions that people who own smartphones spent over $585 billion using mobile payments services in 2016. This includes Android Pay, Samsung Pay, Apple Pay and all other mobile payment solutions that are available. This means we could see an increase of more than 25% in this year alone.
Even though Google is pushing Android Pay fairly hard, TrendForce’s research believes Samsung Pay and Apple Pay are the two system who have an advantage over the current competition. The company was impressed with how Android Pay entered the Japanese market though, as it has been a tough market for other foreign services to crack. Still, they feel the advertising arm of Samsung and Apple are big enough that they will be the two to dominate the mobile payment market next year.
TrendForce revealed some details regarding Google working with Sony to incorporate FeliCa into an NFC-enabled IC card. FeliCa is an RFID smart payment solution that Sony has created. The idea is that this NFC-enabled IC card will work with smartphones and could help strengthen Android Pay’s presence within the country. Google is also said to be working with eMoney, Visa, MasterCard, and Bank of Tokyo-Mitsubishi UFJ as well as other payment services and financial institutions.
TrendForce believes this year will see some much-needed security improvements for the mobile payment market. We’ve been seeing shifting momentum toward the integration of different hardware technologies in encrypted chip design that has improved the security aspect of mobile payments. But the report also mentions that advances in encryption algorithms and multi-factor authentication methods will help to increase efficiency when verifying the user, confirming payments, and securing the transfer of data.