Digital Payments on the Rise

One of the best way to connect online and offline purchases is through data provided by payments. With an increase in digital payments omnichannel retail becomes an easier target.

Consumers seem to be adopting digital payment options at a staggering speed, all over the world. Here are the numbers:

China: Union Pay reports 260 million digital (internet and mobile) payment users

The 260 million internet and mobile payment users show a great appetite for change. The number of mobile payments itself increased by over 445% in the past year as numbers from Q2 show.

PayPal grows steadily and lists 169 million users

Across the globe e-payment leader PayPal shows a steady increase in the number of users and has big plans after its separation from eBay. Though the separation has been long debated, it seems it is for the best.

Number of PayPal Users [source]

51 million mobile payment users expected in Europe, 2016

Europe lags behind with just 51 million mobile payment users expected in 2016. However – that may change in the future as there is lots of potential. For example Iconiq, an investment fund described as “Zuck and friends” backed Dutch payments company Adyen this year.

Adyen alone is expected to process roughly $45 billion this year, so there is still hope for the old continent.

Meanwhile tech giants such as Apple or Google are engaging one another for the mobile payments market, a seemingly enchanted land in the world of future finance.

Omnichannel Payments – Battle Between Giants

What comes to mind when you think digital payments? That would probably be PayPal. We all know Ebay subsidiary PayPal leads the game in digital Payments but now the game is set to change.

Paypal bets big on POS integration
Paypal bets big on POS integration

Although it does have the first mover advantage and has been going strong into omnichannel retail, PayPal is threatened by the largest tech companies in the world:

  1. First of all, company president David Marcus has resigned (or has been fired as rumor has it) to join Facebook. His mission – building a new type of … messaging tool. And by that I mean Facebook Payments.
  2. Google is pushing hard on its Google Wallet, a mobile bridge between online and offline sales. It is a fully NFC compatible payment system, which now accepts all major credit and debit cards, loyalty cards and discount cards. It also allows customers to save offers and buy using touch-to-pay systems.
  3. Everyone raved about the Amazon phone but the actual big news is … Amazon Payments. With over 200 million credit cards stored and the ability to pay with one click (for a very long time Amazon held the patent on that), Amazon is probably the biggest competitor to Ebay’s PayPal.
  4. Apple also has a huge database of credit cards stored on its server. It also has a massive database of customer options, customer history and a fully featured Keychain app built into Safari, ready to help customers do a quick checkout. Its wide device adoption allows it to become one of the most important players in the omnichannel payments area.
  5. Let’s not forget Ali Baba Group, the organization that controls over 84% of the fastest growing and biggest ecommerce market: China. AliPay is the group’s payment system, fully featured with the Yue Bao savings account. And now the company is set to have its IPO in the US.

Now this is the real Game of Thrones in the omnichannel world. Five tech monarchies are reaching for our wallets.