Firm raises funds to support global expansion
Citrus Payments, a payment technology firm based in India, has announced that it has raised $5.5 million in funding from its group of investors. The funding comes at an ideal time when mobile payments are becoming more popular among consumers throughout India. Smartphones and tablets are becoming more common among consumers and these devices are exposing many to the concept of mobile commerce. Consumers are showing strong interest in mobile commerce because of the convenience that it represents.
US and European markets prove attractive
Citrus Payments intends to use its new funding to further expand its presence around the world. The firm has produced some popular mobile payments services in the past that have been used by large companies in Asia and elsewhere. The firm expects to find significant success in markets beyond Asia as mobile commerce continues to grow in popularity around the world. Notably, demand for new payment technologies has been on the rise in Europe and the U.S., where mobile device ownership is quite high.
Competition is fierce in the mobile commerce field
Mobile commerce is a competitive field, so Citrus Payments may have a lot of fighting to do before it can establish a strong foothold in new markets. Large companies, such as Square, Google, and PayPal, already boast of a dominating presence in popular markets. A multitude of startups are also vying for the attention of consumers around the world, making it difficult for any single company to stand out, regardless of how much backing it may have from investors.
Security may be a major challenge
Companies that aim to do well in mobile commerce have numerous challenges that they must overcome. Many consumers cite security as the main reason they are not interested in the concept of mobile payments. Addressing this specific issue has been quite problematic, given the nature of technology and security. Citrus Payments has shown that it can overcome some of the challenges it has experienced in the past, but new challenges are emerging at a rapid pace that may test the firm’s flexibility and ability to adapt.
According to Google’s 2013 Holiday Shopper Intentions report, approximately 95% of millennials plan to use the Internet as a shopping tool during the holiday season. The report predicts that 88% of these millennials will be using their smartphones and tablets to shop online and purchase products. Many of these young consumers have grown quite comfortable with mobile commerce over the past year, thanks to the various mobile initiatives that have been launched by retailers and technology firms alike.