The Rise of In-App Payments: Increase Sales with the Mobile Shopper
#1: In the first 72 hours of Apple PayTM, Apple® saw over 1 million activations.
#2: Tim Cook reported that Visa said there are already more credit cards activated in Apple Pay than in all other contactless payments combined.
These are important quotes by Tim Cook,CEO of Apple Inc., who recently spoke at a Wall Street Journal global technology conference. The outlook for accepting Apple Pay is looking positive. We attribute this future success to Apple’s brand power and their quality products. Second, the power of the mobile shopper will drive in-app mobile payments into the stratosphere.
What Is an In-App Payment?
It is a category of apps that bypasses the POS terminal (or credit card terminal) by allowing users to complete in-store transactions using only a mobile device.
Unlike websites, apps are independent programs. They are downloaded and installed on a mobile device, rather than accessed through a browser. Typically, apps are obtained through an app marketplace like the Apple App Store. On average, these apps are free for consumers in favor of marketing value. These apps promise to make the transactions software-only processes.
Popularity of In-App Payments
In-app mobile payment will see explosive growth in the years to come. According to estimates, the size of the mobile payments market is between 1.5 billion to 2 billion. The numbers might well go beyond 100 billion by 2020!
Additionally, Apple sold 10 million Apple Pay-enabled devices. According to Lets Talk Payments, by the end 2014 the running bet is that they will have sold 25 million.