The payments industry is changing at a rapid pace, bringing new technologies to the merchant countertop that will forever change the merchant-consumer interaction. To help retailers more effectively navigate the changing payments landscape, Merchant Warehouse, a leading innovator of payment technologies and merchant account services, compiled its first State of the Payments Industry Report.
As retailers explore the vast possibilities of mobile commerce to more deeply engage with customers through transactions completed at the point of sale and beyond -- whether the customer is in-store, online or on a mobile device -- the State of the Payments Industry Report will offer a quarterly look at the state of the payments industry, providing an in-depth look at recent developments and innovation in the world of payments and commerce.
“In just the past 12 months alone, we’ve seen a significant transition in focus from mobile payment acceptance to a wider focus on improving the retail experience,” said Henry Helgeson, CEO of Merchant Warehouse. “Our State of the Payments Industry Report offers retailers some guidance to understand what’s happening in the industry and how they can more effectively implement various payment technologies to turn a transaction into an interaction.”
Merchant Warehouse’s quarterly State of the Industry report offers a look at some of the most important changes happening in the industry in areas such as consumer credit and mobile payments, as well as tapping into the “industry pulse” and trends going forward. Here are some of the key statistics and observations:
In September 2013, consumer credit card debt fell $2 billion to roughly $846 billion. People are exercising more caution with their credit cards, but still tend to use them when making big-ticket purchases.
- $1.4 billion has been spent through mobile payments so far in 2013, an increase of 234% over the $640 million spent in 2012.
- Forrester predicts the mobile payments industry will be worth $90 billion by 2017.
- In-store mobile payments are expected to jump from 4% to 45% by 2017.
- Current number of users of mobile payments: 10.9 million. Predictions for future
- 2014: 17 million
- 2017: 54 million
- Current transaction value (average spend per consumer*
*Q for PT/JR - Per year?) - $1,043.
Predictions for future growth
- 2014: $2,592
- 2017: $26,442
- 41% of small businesses expect a stronger 2013 holiday season than what they experienced in 2012.
- 76% of small businesses are reporting increased revenue for the first six months of 2013 vs. the same period in 2012.
- 54% of retailers see the lack of an integrated customer profile across channels as the biggest inhibitor of creating a consistent customer experience.
- 75% of retailers view omnichannel marketing efforts and customer experiences as “very important.”
For more detailed information, view our infographic