Juniper Research is predicting considerable growth for major mobile payment platforms. In a new research paper, the firm predicts that the value of purchases from Apple Pay and Android Pay will skyrocket from $540 million this year to $8 billion in 2018. That’s a fifteen-fold increase.
The main factor underlying this growth is the seamlessness of mPayment transactions. In-app purchases will continue to be a major component of Apple Pay use, according to Juniper Research; and companies intent on reducing friction in the purchases process will be keen to implement easy-to-use mPayment options into their own apps. In 2021, the firm says, over 85 percent of all purchases made outside of retail stores will be made through mobile devices—and Apple Pay and Android Pay should account for much of that.
The firm also notes that these major mPayment platforms will pose an increasing threat to PayPal. Apple has already signaled its intent to expand Apple Pay into web purchases—normally PayPal’s domain—and Juniper Research predicts that Android Pay will move into this market later on as well. While the firm maintains that the platforms’ web-based sales won’t come close to those of PayPal any time soon—not “within the next 5 years at least,” according to a report summary—it is a trend to watch as mPayments continue to rise in prominence.