Hong Kong residents now have access to new mobile payments service
A new mobile payments service has been launched in Hong Kong by Hang Seng Bank. The service leverages NFC technology to allow consumers to purchase goods from more than 1,000 outlets throughout Hong Kong. This service is one among several that have been introduced to Hong Kong in recent months, but Hang Seng aims to establish the service as a leader among consumers, a growing number of whom are demanding comprehensive and convenient mobile payments platforms.
Interest in mobile commerce rising among consumers
Hong Kong has long been an economic hub and home to tech-savvy consumers of all kinds. Consumers in Hong Kong have been very receptive of mobile commerce over the past few years, largely due to their interests in mobile technology and the high penetration of smartphones and tablets. These consumers particular favor online shopping, which is considered relatively convenient when conducted over a mobile device. Therefore, mobile payments have managed to establish a favored place with consumers.
Service leverages capabilities of NFC technology
The new mobile payments service is based entirely on NFC technology. That means that only NFC-enabled mobile devices can make use of the service provided by Hang Seng. These devices are relatively rare, but are becoming significantly more common with every passing month as device makers work to meet the demands of consumers. Currently, the most popular NFC-enabled device happens to be the Samsung Galaxy S III. Samsung recently released the Galaxy S4, which is also equipped with NFC technology, but this smartphone failed to perform up to the company’s standards in terms of sales.
NFC remains popular despite security concerns
Hang Seng believes that its mobile payments service will be well received among consumers. There are concerns regarding its use of NFC technology, however, due to how attractive this technology is to hackers. In the past, NFC technology has been explo
ited to access a consumer’s financial information. Such attacks have won NFC a fairly dubious reputation, but the technology remains one of the cornerstones of mobile payments.
Hong Kong aims to make mobile payments more common
In many parts of the world, mobile payments have become more than just a passing fad. More consumers are becoming enamored with the idea that they can purchase products using only their mobile device, rather than physical currencies or credit cards. Hong Kong has become one of the most active markets in terms of mobile payments, with many of the consumers that have smartphones and tablets opting to participate in mobile commerce. For some, however, the concept of mobile payments can be somewhat confusion. In an effort to make mobile commerce more accessible, the King Kong Monetary Authority has launched a new initiative to spread awareness of mobile payments.
Study shows growing support for mobile commerce
The Hong Kong Monetary Authority recently finished a study concerning NFC-based mobile commerce. NFC-based systems are currently the most popular mobile commerce platforms in Hong Kong, despite the relatively few NFC-enabled mobile devices that are available to consumers. The study shows that consumers are interested in NFC technology, but also mobile commerce platforms that do not use this technology. The study outlines recommendations concerning future mobile payments initiatives that may take form in the Hong Kong market.
Agency to work to establish NFC mobile commerce infrastructure
According to the Hong Kong Monetary Authority, the study has shown the need for an expansive, NFC-based mobile commerce infrastructure. In order to meet the needs of consumers, the agency will work to develop such an infrastructure and increase the availability of NFC-enabled mobile devices. This infrastructure will have a strong focus on NFC technology, but will also be accommodating to mobile payments that are not based on NFC so as to remain flexible to future trends that may emerge in the mobile commerce market.
Awareness may be key to continued success
The agency is also interested in raising awareness of mobile payments. Many consumers have shown interest in the idea of mobile commerce, but are not entirely sure how to participate. The agency will work to inform consumers how mobile payments work, whether NFC-based or otherwise, in the hopes of making consumers more comfortable with purchasing products using their mobile devices.
