This new tech could provide regular consumers with the same level of security as used by the military.

Professor Bill Roscoe and his team at the University of Oxford have been pursuing what has been called “spontaneous security” for about a decade and have now been able to create it in the form of a very powerful, defense-grade security in mobile payments technology.

This would make it possible for people to use their smartphones as wallets without being worried about theft.

The team has come up with a mobile payments technology that would make it possible to easily and inexpensively create secure ad hoc communication networks so that two or more devices could safely communicate in a way that they have never been able to at any other time. Professor Roscoe explained that “What we have been working on all this time is contextual authentication: ways of identifying someone by the context they are in when you don’t have their mobile number, name or anything like that.”

The security protocols followed by the algorithms in this mobile payments technology are very high.

These security levels are great enough to be appropriate for the US Navy, that contributed $1 million to the project, in addition to the £100,000 from the U.K.’s Ministry of Defence. The tech was taken to Kenya by the British Army, which used the security software in protocols on maneuvers. That software was spun off by the commercialization company at Oxford, Isis Innovation, which then formed OxCept. This allowed it to be converted for use in transactions.

There has already been considerable interest in OxCept within the industry, as even PayPal has been looking into the research being conducted and the outcomes produced by Roscoe’s team. This has also led to another first, which will occur as the Oxford spin-out, when it has a base in both London and Silicon Valley. The purpose will be to try to grab hold of a good sized share of the market for mobile payments, which is predicted to become massive in the next few years.

In fact, KPMG has predicted that the mobile payments technology marketplace will be worth over $1 trillion by the close of 2015.

Kiip releases information on growing mobile revenues

Kiip, a mobile marketing firm, has released information concerning the top mobile commerce brands. The data from Kiip highlights which brands have found the most success in mobile commerce in 2013. Retailers have taken a strong interest in the mobile sector due to the rapidity at which smartphone and tablet ownership is going. Consumers have been showing favor for mobile shopping because of its convenience and the deals that many retailers have been offering specifically to mobile consumers.

Specialty retailers find major success in mobile space

According to the information compiled by Kiip, the retailers leading mobile commerce are JackThreads, Rue La La, Groupon, and Fab. These retailers have a significant lead over other brands when it comes to mobile revenue generation. Notably, both Amazon and eBay have seen relatively little mobile growth when compared to other retailers despite how much effort they have put into mobile commerce. Smaller, more specialized retailers seem to have been able to engage consumers more effectively with their mobile initiatives.

Mobile traffic is on the rise

Kiip notes that mobile traffic to retail sites has grown by an average of 39% over what it had been in 2012. Consumers are flocking to mobile retail sites in order to shop, especially during the holiday season. Retailers have been reporting a significant increase in mobile sales during the 2013 holiday shopping season as they find success with their mobile engagement initiatives.

Mobile marketing is gaining prominence

As mobile commerce grows, mobile marketing is quickly becoming more important for businesses. Retailers that have not invested in mobile marketing have been unable to effectively engage consumers on smartphones and tablets. This has limited their appeal to those interested in mobile commerce. Mobile-centric consumers are more likely to engage in mobile marketing initiatives than traditional marketing due to the more interactive nature of the former.