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The importance of mobile
Mobile technology has the potential to become the primary focus of businesses as customers tend to stick to convenience and seamless experiences wherever they are and whenever they want. The banking industry is no exclusion. Mobile-friendly interfaces didn’t complete the task of gaining loyalty, but mobile-first solutions have proven to possibly become the banking business model of the future.
Millennials prefer mobile banking over traditional branches as we discussed in our earlier article.
However, banking and businesses have a future in mobile only if the market is ready for mobile and the adoption rates allow it. Mobile payments in some countries have picked up at incredible rates due to various factors: superior experience, highly developed high-speed connections, smartphone adoption, etc. Globally, mobile payments have reached a tremendous volume and will be scaling further.
In fact, the worldwide mobile payments volume in 2015 was $450 billion and is expected to surpass $1 trillion in 2019. If we were to look at the US in 2015, US mobile payments transactions reached approximately $8.7 billion. Analysts predict that mobile payments are expected to reach $142 billion by 2019.
Mobile payments were able to reach such a significant volume due to the global smartphone user base expecting to surpass 2 billion people in 2016. Moreover, mobile subscriptions are expected to hit a total of 9.2 billion by 2020.
China: One of the countries leading the global transition to mobile-centric business models
Although global mobile payments and smartphone penetration rates are at a high rate and expected to grow further, in some countries, mobile technology has been more successful than in others. One of those countries is China, where the factor of more than 1.35 billion people populating it has contributed to the opportunities mobile-focused businesses have in the country of the rising sun.
Mobile wouldn’t pick up in the country if it wasn’t for the developed high-speed mobile connection networks. 4G connections in China are expected to reach one billion by 2020, representing about two-thirds of the market by that point. Some experts believe that local mobile operators have a heavy impact on the overall shift to 4G connections since they are subsidizing the cost of 4G devices through their retail chains. In addition, China Daily suggests that domestic manufacturers are responsible for producing a higher proportion of 4D devices than international players.
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