We are fast approaching an era of total digitisation, with almost all aspects of human life are now taking on a digital form. People have become reliant on technology as it offers convenience and efficiency when carrying out tasks.
And when it comes to mobile payments, the industry has witnessed nothing short of a historic momentum. With the rise of digital apps and services, people have become more reliant on their smartphones. According to Statista, in 2018, the number of smartphone users in Middle East and Africa is estimated to reach 157.7 million.
On the back of this, the fintech industry is poised to continue growing, and while some countries are lagging, this region is increasingly embracing advanced payment solutions.
There is no doubt that these digital payments will soon become an integral part of daily lives. It will transform the way we carry out traditional transactions as individuals and will push financial institutions to adapt accordingly. As mobile payments introduce convenience, it also introduces a much-needed platform for people wanting to process cashless payments.
As cyber currencies such as cryptocurrencies grow in popularity, users are looking for ways to process transactions without the direct involvement of a financial institution. Mobile payment solutions give users the ability to carry out financial transactions online or peer-to-peer.
An important factor that will influence the future of digital transactions is the incorporation of innovative technologies. Artificial intelligence and blockchain technologies have certainly caused a disruption in the technology space, introducing unmatched opportunities while increasing efficiencies.
These technologies have made it more convenient to carry out processes and analyse data to better understand consumers — the main drivers of innovation and adoption. It is important mobile payment services adapt to these technologies to offer users the full experience. Eventually, the main driver of adoption is consumer demand.
It is integral for organisations to maximise around new innovations and ensure the long-term success of the technology they are adopting.
Without a doubt, online payment services will be integral to the future of retailers. According to Statista, the worldwide mobile payment revenue in 2018 is expected to reach $930 billion. More companies in the Middle East will need to embrace them in order to compete.
As with any emerging technology, more organisations will start to adopt mobile payment options, driven by consumer preferences. Organizations that do not adapt to this change will eventually lag their peers who have introduced mobile payment options. These services will revolutionise the consumer experience and replace cash and credit cards with smartphones.
In this tech-savvy era, we definitely expect to see a majority of payments moving towards cashless transactions. The potential of mobile payments lies heavily in the hands of consumers. The number of users has been steadily increasing over the years as payment companies and online payments platforms provide a plethora of options.
We can expect to see more stores — both online and offline — adopting digital payment technology. This allows them to broaden their payment acceptance for services like mobile wallets, and bring their customers payment solutions beyond ancient transaction models such as cash or barter.
Paolo Gagliardi is CEO at Trriple Payments.
