As the industry continues to grow and more people consider the use of the services, concerns increase.
Consumers and mobile payments service providers, alike, are expecting this technology to have a considerable impact on the way that business is conducted and products are purchased, but at the same time, there remain a number of concerns that are keeping people from actually using it, quite yet.
There is still growth in in-store purchase, paid bills, and money transfers through smartphone transactions.
At the same time, many experts who are examining this new technology and what mobile payments are doing in the industry say that there are many questions that remain about its privacy and security. This is holding back its progress to a considerable degree as consumers simply don’t trust it enough to feel safe and confident in its use, so far.
At the same time, mobile payments industry execs are saying that the technology is already good and is improving.
Though consumers are hearing that message, they seem to be willing to wait for those improvements to be implemented before they actually put it into use. At the same time, experts in security are also pointing out that the rapid growth of the use of smartphones for mobile payments is also attracting the attention of those who would use it for fraud.
It is precisely this worry that has consumers stepping back and either using the device less than they otherwise would for mobile payments, or simply choosing not to use it at all until they feel that the risks have dropped.
According to a Dallas based organization called NQ Mobile, a company that offers smartphone security software, it witnessed a growth of over 65,000 new malware threats released around the world, last year. This was a massive increase over the 24,000 new threats that were introduced in 2011. This type of issue can cause unsuspecting device users to head to sites where they reveal their financial data so that it can be stolen and used by unethical third parties.
According to Gavin Kim, the company’s chief commercial officer, “It’s a real problem, and it is growing.” Security will clearly be a key issue to overcome before mobile payments can truly take off.