Javelin Outlines Opportunities at the Intersection of In-Person, Online and P2P Payments

San Francisco, CA, December 14, 2016: With mobile proximity payments projected to reach $92 billion by 2019, merchants and card issuers are rushing to release branded mobile apps that capitalize on both in-store and online payments growth. Javelin predicts that hundreds of new payments apps will flood the market by 2018. The flurry of apps is expected to confuse the consumer struggling to find a convenient mobile payment solution for purchases online, in-app, and in-store. Today, Javelin Strategy & Research released Mobile Payments Convergence: Opportunities at the Intersection of In-person, Online and P2P Payments, which explores the coming convergence of fragmented payment apps into integrated solutions. 

Javelin expects this mobile payments convergence to take place in two waves — with mobile-online retail payments first, followed by the consolidation of P2P functionality into mobile wallets that presently work primarily in-store. With one account, consumers will be able to meet all their needs online, in store, and when paying a friend — significantly broadening the utility of a wallet app and simplifying the payment choice. Just as Amazon’s 1-Click checkout transformed the shopping experience online, users will seek out similarly streamlined wallet options to pay for everything, everywhere.

“This mobile wallet ‘convergence’ will create value by simplifying users’ choices when it comes time to pay,” notes Emmett Higdon, Director of Mobile, Javelin Strategy & Research. “Banks and card issuers have a unique opportunity to simplify the purchasing experience by offering a single branded wallet solution that brings together mobile payments, money movement functionality, and account management capabilities.”

The report, Mobile Payments Convergence: Opportunities at the Intersection of In-person, Online and P2P Payments explores factors driving mobile wallet growth and implications of the convergence of P2P, online and in-store payments.

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About Javelin Strategy & Research
Javelin Strategy & Research, a Greenwich Associates LLC company, is a research-based advisory firm that advises its clients to make smarter business decisions in a digital financial world. Our analysts offer unbiased, actionable insights and unearth opportunities that help financial institutions, government entities, payment companies, merchants, and other technology providers sustainably increase profits.

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