The mobile space is driving the evolution of commerce as a whole
It has been 10 years since PayPal launched its first mobile payments service. To celebrate the anniversary of the service, the company has released information to show its exponential growth over its long history. This information is visualized in a chart that was released by PayPal earlier this week. According to PayPal CEO Dan Schulman, the mass adoption of mobile commerce has created a significant shift in the way people spend money. This has begun to change the nature of commerce with consumers relying more heavily on the digital space.
$66 billion in mobile transactions were processed by PayPal in 2015
According to PayPal, one-third of the 4.9 billion payments processed by the company last year were made through mobile devices. This accounts for some $66 billion in mobile transactions. The company believes that the growing prominence of mobile payments services will lead to a change in the commerce space over the next decade. This change may accelerate as more businesses begin supporting mobile transactions and shoppers relying on their smartphones and tablets.
Global mobile payments could reach $4 trillion by 2020
In the United States, mobile commerce exceeded $100 billion in transactions in 2014. These transactions have continued to grow since, with more consumers becoming comfortable with the prospect of using mobile devices to make purchases. By 2020, mobile transactions could reach more than $4 trillion globally, according to IDC, a market research and analysis firm. With new payment services becoming more secure, more consumers are likely to participate in the mobile commerce space, giving PayPal and other companies new opportunities to expand their mobile initiatives.
Improved security makes consumers more comfortable with mobile commerce
Consumer adoption of mobile commerce has been heavily influenced by the security and convenience of payment services. Many had consider mobile transactions to be risky as they believed their financial information would be exposed to theft and exploitation. Indeed, some services have been impacted by major data breaches in the past, but these events have served to strengthen security in recent years, making mobile payments more attractive to consumers.
Consumer privacy protection groups have pointed out that device owner movements and data are being sold.
People living in the United Kingdom are being urged by consumer privacy protection groups to take a closer look at the location based services to which they have subscribed as many of these options are shady or vulnerable to hacking.
The recommendation has been issued by the Open Rights Group (ORG) following the outcome of two studies.
This recommendation was made by ORG as a result of its “Cashing in on your Mobile” report, in addition to a second report that was issued by Krowdthink. Both of these organizations have determined that people have signed on for location based services and that many of those options are on the sketchy side or leave mobile device users open to having their personal information accessed by hackers.
These location based services can gather information about the movements and personal data of device users.
Mobile Technology – UKIn the ORG report, it expressed that “Research found that 93 percent of punters have been opted into having their location tracked (and sometimes their web browsing and app use) by default by their mobile provider and public WiFi providers.” It went on to state that if this geolocation data were ever to be hacked, it would place mobile device users in a position in which their personal information in combination with their daily movements could be revealed to anyone who may be interested in purchasing it.
This could escalate the current rampant problem of identity theft to the point that it is not only the personal information of a device user that can be stolen and used, but also their typical location at any time of the day.
ORG also reported its concern that “Service providers are not being upfront at point of contract signature with customers with regards to the fact that all their movements will be tracked and historic location data will be used for marketing purposes and in most cases sold to third parties.” The report indicated that there are some WiFi providers that suggest that they are required to collect some of the location data for legal purposes but that these claims were greatly exaggerated.
Consumers are struggling to know how they can go about opting out of location based services even among those that are aware that there could be a security problem.
