In two short years, we will be paying more often through mobiles than with credit cards, according to a report published by the United Nations Conference on Trade and Development (UNCTAD).
This shift will be especially true in developed countries, where 46 % of payments will be made by credit cards, compared to 51% in 2014. An excellent example of this transition is China, where the adoption of mobile payment is particularly strong. Alipay alone encompasses 68% of Chinese online shoppers.
This trend is not expected to apply to developing nations, were cash is still the preferred payment methods and the smartphone penetration is still relatively low. For example, e-commerce customer in Egypt prefer to pay on delivery. Similarly, Kenyan customers prefer cash payment. However, mobile payments are on the rise there, as a UNCTAD global survey showed that it is preferred for online transactions.
The report also predicts that blockchain technology will be used for cross-border payments in the future. The use of peer-to-peer might help ease transaction fees from banks as they are secure and less expensive. Improvement to the security mechanisms and size of the minimum transaction should contribute to increase the adoption rate of blockchains.
