Mobile payments are becoming increasingly popular, but there is still a lot of room for improvement, since consumers tend to remain loyal to traditional payment methods and many merchants are still skeptical about accepting this kind of payments. However, this is expected to change as more consumers start relying on their mobile wallets and the overall number of mobile phone users grows to reach an estimated 4.8 billion people by the end of the year.
According to a recent Business Insider Intelligence report (http://nnw.fm/ZDrk0), in-store mobile payments in the U.S. alone are expected to reach $75 billion in 2016 and up to $503 billion by 2020, increasing by a compound annual growth rate of 80%. Similarly, the number of U.S. consumers making mobile payments is likely to increase at a compound annual growth rate of 40% to reach 150 million by the end of 2020. This significant growth will be driven by several factors alongside the growing number of mobile phone owners, such as better implementation and access to loyalty programs and coupons and a shift from magnetic strips to mobile wallets. Worldwide, it is expected that roughly 70% of the 4.8 billion mobile phone users will be making mobile payments by the end of 2017, according to a Techcrunch analysis (http://nnw.fm/a6mZG).
While the market is largely dominated by mobile payment solutions offered by Apple (NASDAQ: AAPL) or Google (NASDAQ: GOOG), it seems smaller companies that bring innovative technologies to the table and target underserved verticals have a very high chance of successful growth. This is also the case for Singlepoint, Inc. (OTC: SING), a leading provider of mobile technologies and payment solutions, that targets two very promising vertical markets – daily fantasy sports and mobile auctions, while also focusing on the business-to-business aspects of the industry.
More specifically, Singlepoint is committed to providing businesses with another way of accepting payments, via its Pay-by-Text product, which is built around the concept of payment enabled text messages. As opposed to the radio frequency-based identification technology used by most NFC (near field communication) contactless payments, the Pay-by-Text platform is based on short message service technology. With this system, users receive a text message with a link that leads to a mobile landing page where they can do the transaction, Singlepoint CEO Greg Lambrecht explained. This greatly simplifies and streamlines the process because users are taken directly to the payment page, while with other mobile companies or providers of mobile payment solutions, users have to first find and install their apps.
The Pay-by-Text combination of text messages and payments allows merchants to offer simpler mobile payment options to their customers by enabling them to pay from anywhere and at any time. The platform also supports any kind of credit card processing. Singlepoint is currently in the process of leveraging this technology in two niche markets – daily fantasy sports and mobile auctions, markets where the holding company has purchased minority stock recently. The DFS vertical in particular is expected to bring significant value to the company, due to its fast growth rate and the high number of players who use a mobile device to play.
For more information, visit the company’s website at www.Singlepoint.com
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