Mobile payments are the backbone of an increasingly omnichannel retail environment, allowing consumers to slip seamlessly between multiple devices, channels, and locations. Consumer mobile transactions are growing at a phenomenal rate, double that of the average retail, according to Critero’s latest State of Mobile Commerce report.
Gen Z leads the way
This impressive growth in mobile payments and omnichannel behavior is driven by the youngest consumers in society: Generation Z. These true digital natives, born after 1995, are the most active adopters of mobile commerce. To these consumers, mobile payments and in-app services like Airbnb, Uber and Deliveroo are an instinctive and natural way to make purchases as they grew up with them. Unlike their older counterparts, Generation Z does not concern themselves with security fears or data privacy. As a result, Generation Z’s use of mobile payments is more than double the average rate.
B2B makes up two-thirds of ecommerce
Business-to-consumer ecommerce is growing steadily across the globe, and will total approximately USD 2 trillion in 2016. By contrast, business-to-business ecommerce is expected to total USD 6 trillion this year, making up two-thirds of the total industry. Enterprises are completing business transactions online more and more frequently, yet mobile payments are almost entirely non-existent in a business environment. Settling payments to suppliers in a business environment is still largely a painful process, resulting in slow clearance times and sometimes strained business relations. There is clearly a disconnection between the current trends in consumer behavior – convenience, speed and mobility – and those in business. We expect the tides to turn on B2B mobile payments, and soon.
Young professionals will expect change
The oldest members of Gen Z are turning 21 this year. As they graduate and embark upon careers in the business world, they will expect their corporate affairs to be conducted with the same speed and convenience as their personal finances. They will expect the same intuitive digital applications to be available in a business setting.
Moreover, as financial service providers develop new tools for businesses, many are looking at the latest movements in consumer usage. By capitalizing on trends such as mobile and omnichannel payments, there is significant potential for B2B mobile payments to streamline the way SMEs and larger corporations do business.
The trend discussed in this blog post is just one insight from our Mobile Payments Report 2016. Curious to learn more about the current trends and patterns regarding mobile payments? Our report is available for free on our website, Payvision.com.