Tag: MasterCard

Facebook breaks into mobile payments

| March 20, 2015

Facebook has announced a new service that will be available for the Messenger app

Facebook is making its first official entry into the mobile payments space. The social media company has announced that it will soon allow users of its Messenger application to send and receive money. The service will be free, but will see a limited initial launch in some parts of the United States. The launch will be taking place over the next few months, eventually be made available to all Messenger users in the country.

New service will allow users to send and receive money over Messenger

Facebook has partnered with Visa and MasterCard in order to make the service available. Those with Visa or MasterCard cards, as well as those with debit cards from a U.S. bank, will be able to transfer money through the new service. The service will be accessed through a “$” icon that will be added to the Messenger app in the near future. Once this icon is tapped, users will be able to note the amount of money they can send to their friends. All those using the service will have to link their financial information to the Messenger app.

Consumer information will be stored in a secure environment

Facebook - Mobile PaymentsFor security purposes, users will have to use a PIN number to authorize money transfers. The company notes that all financial information will be kept in a secure environment that is entirely separate from other parts of Facebook. The service will also be monitored by fraud prevention specialists, who will analyze the service to determine whether or not suspicious activity is present among users.

Facebook will face competition from other companies entering the mobile payments space

Facebook has been showing strong interest in mobile payments for some time. The company sees a great deal of promise in this sector, largely due to the number of consumers that spend money online over their mobile devices. Facebook will be competing with other companies involves in mobile payments, such as PayPal, and may soon be competing with Twitter and other social media platforms that have recently entered the space.

Security of mobile payments may no longer be a concern

| March 12, 2015

Consumer sentiment regarding security of mobile payments has changed

The security of mobile payments may no longer be a serious concern for consumers, according to a recent study from MasterCard. The company released its third annual Mobile Payments Study, which is conducted in partnership with Prime Research, and found a significant shift in consumer sentiment concerning mobile payments. For years, consumers have been somewhat concerned about the security of payment platforms, but now they appear to be more interested in enhanced digital experiences on their mobile devices.

Consumers want to see better digital platforms that are more convenient and enjoyable

The study shows that in the Asia Pacific region, which is one of the fastest growing mobile payments markets, conversations regarding mobile transactions primarily took place in India, Japan, Australia, China, and Indonesia. Consumers took to social media sites to talk about the need for better digital experience, especially in the mobile shopping space. Notably, merchants are also finding more visibility by joining in on these conversations, which are providing them with insight into what consumers want to see from the mobile commerce space.

91% of conversations about security have been positive

Mobile Payments Security less of a concern among consumersAccording to the study, 91% of the conversations regarding the safety and security of mobile payments were favorable. This is a vast improvement over 2012, when 57% of the conversations about mobile commerce security were negative. Confusion regarding the security capabilities of mobile payments services has also diminished. People are now praising secure platforms and are using these platforms more regularly in order to shop online and in physical stores.

Consumers demand better digital experiences in order to enjoy mobile commerce more

Though security may no longer be a serious issue for consumers, they still want to see better digital platforms. Some retailers are lagging behind in terms of providing an enjoyable shopping experience for mobile consumers. As mobile payments begin playing a larger role in the retail space, this could become a problematic issue for merchants. Improving the digital experience could provide retailers with promising business opportunities.