Facts and Figures: Digital Consumer Payment Market Analysis by Bitupper
Over the past 2 decades, there are 4 main milestones of payments:
1) the traditional model of “cash / card / bill” (the turn of the century);
2) “closed multi-channel online model” (the first few years of the 21 century);
3) “mobile multi-channel, open and fragmented model” (over the next few years);
4) “Internet of things” (IoT), multiservices, social models “(by 2020 and beyond).
In the future, market fragmentation will continue, and it will vary depending on the payment channel — Proof-of-stake (POS), e-commerce, mobile commerce or in-app sales.
The total value of global transactions with retail payments is estimated at $16 trillion. in 2015. According to forecasts, by 2020 this amount will increase up to $ 21 trillion. This evaluation combines trade operations carried out by consumers through retail verticals, such as food, clothing, consumer durables, etc. Digital payments contributed to an increase in the global total market by 8% in 2015, and by 2020 their contribution will amount up to 18–24%.
It is expected that the main catalysts stimulating the growth of the retail payment market in the coming days will be app and contactless transactions.
Different types of players and decisions become successful in different markets. There is no universal model, the use of which would lead exclusively to a successful result, however, we can distinguish some common elements of the winning model:
- Unique value offer — for example, making a payment using a mobile application in Starbucks;
- Access to a large client base such as eBay for PayPal, Alibaba for Alipay;
- Conducive infrastructure like devices with NFC support;
- Stimulating state regulation — for example, M-PESA in Kenya;
- Use of NextGen technology — for example, tokenization for security, biometric data for Apple Pay authentication;
- Bundling payments and loyalty program (Starbucks rewards loyal customers through its payment application).
Bitupper will contain all the key aspects inherent to the winning model described above in order to offer the most advanced online banking tools in an understandable and user-friendly interface on all platforms used.
