Mobile Revolution: The Speedy Rise of Pay-by-Phone Services

The highly mobile nature of consumers has just fuelled the growth of pay-by-phone services. Convenient and considered the safer mode of payment compared to swiping a physical card or shopping online, using a mobile wallet has grown by 50 percent in 2016, according to the latest Apple Pay statistics from analytics company TXN.

Currently, transactions involving mobile payment amounts to GBP 19 billion each year. According to a report by Digital Market Outlook, this is predicted to grow by 62 percent by the year 2021, amounting to £214 billion.

Along with the increase in pay-by-phone usage, more merchants are now accepting Apple Pay and Android Pay. Most of these merchants consist of mobile apps and online stores, but brick-and-mortar businesses are also starting to embrace the trend, as Apple attests that 35 percent of US retailers now support the service.

Mobile Phone Payment for Parking Tickets

In Brookline, Massachusetts, paying for a parking meter can now be done with the use of the smartphone by downloading the "Passport mobile parking app" which is available in the App Store and Google Play. One of the key features of the app that is most useful to users is the mobile reminders it sends to them when the time on the meter is about to expire. The app also allows users to renew their meter from a distance.

Other cities in the United States where paying for parking tickets via pay-by-phone services is also available include Seattle, Tucson, Green Bay and Denver. In the United Kingdom, this payment mode is offered in several cities as well, such as Manchester, Oxford, Birmingham, and York.

Buy Groceries and Other Items Using an App

In its 42 stores in the state of Nevada, Walmart has made the Walmart Pay feature available to customers, allowing them to pay for groceries and other items using the Walmart app. Every month, there are over 20 million customers who use the Walmart app to look for items, check in to pick up their online orders, and refill pharmacy prescriptions.

Daniel Eckert, senior vice president of services for Walmart’s United States operations, explains: “Walmart Pay is a powerful addition to our app, a tool that we’re using to transform the shopping experience by seamlessly connecting our online assets and our stores for customers. The service opens the door to new and better ways we can serve the 140 million customers who shop our stores each week.”

Rent or Buy Preloaded Movies via Mobile Phones

A pilot program has been recently launched by Fox, Telstra, and Ericsson in which films are preloaded on mobile phones which users can either rent or purchase to unlock. Unlike Netflix, the preloaded movies are accessible to users anytime, and there is no waiting time for streaming or downloads to access the full high-definition content.

According to Fox, the movie downloads would use zero-rated data from participating mobile carriers and users will have full control over how and when the films are stored in their device. The trial is running for one month, after which companies involved in the experiment will be gathering feedback.

Online Games Charged to Mobile Phone Bill

In online gaming, pay by phone makes it safer for players to deposit funds to their account without having to provide their bank details. Several bingo sites offer a pay-by-phone feature: instead of paying with their credit card or PayPal, purchases made by mobile bingo players are charged to their phone bill at the end of the month. There are many phone payment systems available to bingo players, like Boku and Payforit, which can be used by people living in the United Kingdom and have a UK mobile phone number. These providers only allow users to deposit up to £30 at once, which makes them a safe option for those who are not planning on spending too much in one go.

With online security and convenience being important factors in consumer behaviour, it is no surprise that pay-by-phone systems have grown immensely during the past year and that these payment options are no longer confined to online stores and mobile app purchases but have now penetrated brick-and-mortar establishments as well.