Alright, startups, it’s time to look at the future – or non-existence – of cash. The increasing dependability of consumers on mobile and ecommerce means that startups and businesses of all sizes need to be ready for if/when cash becomes a thing of the past.
Earlier this year it was predicted that mcommerce (mobile commerce) sales would reach around $115.92bn by the end of this year, representing a 43.2% increase over the last 12 months. By the year 2020, that figure will almost triple to $335.84 billion.
All over the world, people are starting to question when – rather than if – cashless societies will come into place.
Countries like Sweden are already witnessing massive numbers of people and businesses reject cash in favor of peer-to-peer payment systems.
Once reserved for big purchases, digital payment platforms are now used for everything, from purchasing expensive items to donating (the equivalent to change) to charity.
Monica Eaton-Cardone, co-founder and COO of Chargebacks911 – a chargeback management company – says businesses of all sizes must look to leverage mobile apps to their advantage. However, businesses must watch out for certain caveats that could put them at a disadvantage.
Eaton-Cardone warned, “Regulations now allow issuing banks to group low-ticket transactions as a single chargeback claim, so merchants cannot accurately track their mobile app chargebacks or match the transactions in their order management system.”
The need for boosting mobile payment capabilities is picking up serious steam. A cashless future seems to be coming ever closer. The first quarter of 2016 marked the first time that mobile apps surpassed mobile web in ecommerce visits. Now, mobile app payments are also closing in on desktop visits, too.
Overall, consumers and visitors spent 20 times as much time on mobile apps than they did on mobile web, averaging over three hours per month on mobile apps but less than 10 minutes on mobile websites.