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The Changing Face of Mobile Payments

by Mike Walters, Head of UK Corporate Payments, Barclays

As mobile payments become more widespread among consumers, corporates face a growing need to interact with their customers in new ways across the payment and purchasing cycle. Established solutions like Barclays Pingit for corporates are helping companies to pioneer m-commerce in innovative ways, and create revenue opportunities.

The growing prevalence of smartphones and other mobile devices is driving a rapid shift in the consumer payments landscape. As mobile technology becomes more widespread, the way in which consumers manage their banking and payment activities is also evolving. For example, as consumers become more accustomed to mobile banking services, they are adopting this technology for a growing range of activities, from reimbursing friends to paying businesses for goods and services. This area is developing swiftly: Gartner predicts that by 2016, the value of mobile payments will reach $617bn globally, up from around $170bn in 2012.

This shift in consumer behaviour is also driving changes in the corporate world. Consumers are increasingly demanding the convenience of ‘on the go’ payments: anywhere and at any time. Corporates with large retail customer bases therefore need to consider how they interact with their customers and take advantage of m-commerce opportunities.

Overcoming corporate challenges

Constraints on consumers’ disposable income and a highly competitive landscape create considerable challenges for B2C corporations. The need to drive costs down and revenues up, while providing customers with a simple and attractive purchasing environment, has never been greater.