This week come with some interesting statistics from UK and Chinese mobile contactless spending. While in UK we see £370 million within first 6 months of 2017, the total mobile payment in China in 2016 reached $5.5 trillion.
To normalize this, lets take a (stupid, but easily interpretable) shortcut and have a look through GDP:
- UK> $2.729 trillion (nominal, 2016); approx. $476M per yer per $1trillion of GDP*.
- China> $11.202 trillion (nominal, 2016); approx. $490 000M per yer per $1trillion of GDP.
* based on linear extrapolation of the mobile payments. £370 million = $477 million (18.08.2017) per 6 months, including 336% YoY growth -> expected $1.3 billion for 2017.
Here are the news:
1. Mobile contactless spending accelerating in UK – Per new data from Worldpay, mobile contactless transactions (i.e. Apple Pay and others) has grown 336% year over year and reached £370 million in the first six months of 2017. While the spending still represents a relatively small piece of the market (total card spending reached £904 billion in 2016), it shows that mobile payment adoption is slowly making inroads with consumers. Though mobile payment adoption will continue upwards, regular contactless spending card will dominate in the next two to three year.
2. Chinese spend $5.5 trillion via mobile payments in 2016 – From one extreme to another, new research (although potentially from a biased source in Tencent Research) has shown Chinese consumers continue to fully embrace mobile payments with spending reaching $5.5 trillion. We often think that Western markets are ahead of the curve regarding new payment technologies and trends but in respect to mobile payments China and other Asian markets are far more advanced and offer customers unique features and functionality that truly means consumers can leave their wallet at home and rely on their mobile phone for every payment. While this is largely seen in Asian markets, expect other emerging markets around the world to largely jump past cards as a primary payment vehicle and embrace mobile payments in the years ahead.