Mobile payments may become the predominant method of payment in the future, replacing cash and bankcards.

According to the Pew internet study, Mobile payments will be ubiquitous in 2020 and 65% of those polled believed people will use their smartphones as their main method of payment by 2020. Both customers and businesses are embracing innovative payment methods. Eventually, mobile payments will become a more convenient alternative to credit cards, cash and checks.

Why do we have to keep carrying money or heavy coins in our purse or in your pocket when we can make payments through our smartphones? Today it is almost impossible to find somebody without a phone; combining phones and process payments seems like a logical solution to help with this, Facebook decided to simplify mobile payment by:

  • Making it easier for developers to add payment options on mobile web apps

Today people are able to use Facebook Payments to monetize their apps. The process is very simple. Users who want to pay for virtual or digital goods in a mobile web app open the payment window and confirm their purchase. This two-step process is new. Before, the flow for mobile payment counted a total of seven steps with a verification message. This made it less convenient for consumers and businesses. This changed after the annual Mobile World Congress where they announced an improvement for payments. By simplifying the payment process, Facebook could see an increase in mobile payment transactions and become one of the top mobile payments platforms.

  • Allowing marketers to have the option of buying mobile-only Facebook ads

Previously, Mark Zuckerberg has been wary of mobile-only Facebook ads. Facebook has since decided to change their mind and embrace the technology. Since February, Facebook already has mobile advertising where marketers can advertise. They’ve updated their process with a new Facebook mobile ad product, which is designed for marketers who only want to buy mobile ads. They can sponsor stories and pay posts to get more visibility in people’s new feeds.

Even if it is trendy and popular, it is important to remember that 75 percent of people (4.5 billion) in the world still don’t use smartphones. Many people are asking why people are focusing on a mobile payment experience in which not everybody can actually participate.

Despite this, competition for this space is set to increase. Google and Apple are already trying to enter the space and Paypal and FourSquare have already gained significant traction so we don’t know what the future will be for Facebook mobile payment. However, we will wish them better luck than their ill-fated IPO.