Tag: mobile commerce news

Mobile payments make take over cash in the coming years

| March 21, 2016

Mobile commerce could eventually replace conventional forms of commerce

Mobile payments may actually do away with cash in the relatively near future. The Institute of Electrical and Electronics Engineers (IEEE) has released a new report that highlights security issues in the mobile commerce space. The report does show that security issues are quite serious, but the mobile commerce space may overcome these issues to outpace traditional forms of commerce and become favored among consumers. IEEE surveyed 2,000 technology enthusiasts for the report.

Consumers remain concerned about security risks that exist in the mobile space

According to the report, 70% of those that the company surveyed believe that mobile payments will be secure enough to replace cash by 2030. Many consumers are already interested in new payment services, but they rarely use these services due to concerns regarding their security. Consumers believe that their personal information could be at risk of exploitation if they use their mobile devices to make purchases. These are not unfounded worries, as mobile payments services have been targeted by malicious groups in the past.

Consumers are worried about unauthorized purchases and malicious QR codes

Mobile payments may takeover cashOf those surveyed, 46% said they were worried that their payment information would be stolen. Another 33% claimed that they were worried that unauthorized payments would be made through mobile services. Approximately 13% were worried that they would accidentally make a payment through an NFC sticker or QR code. Consumers are also concerned that their mobile devices may be infected by scanning a malicious QR code. These concerns have come together to discourage consumers from participating in mobile commerce.

Companies are beginning to aggressively address security issues in order to make mobile commerce safer

While consumers are worried about their financial information, companies in the mobile commerce space are beginning to address these concerns. Several have begun using biometric technology to protect their mobile payments services. Tokenization is also becoming popular in the mobile commerce space. This involves replacing consumer information with digital tokens, which can be used to authenticate mobile transactions.

Paytm seeks to expand mobile payments to more offline merchants

| March 17, 2016

Paytm will be working to expand its offline merchant network this year

Mobile payments firm Paytm is looking to expand its offline merchant base in India. The company intends to establish a stronger presence among physical stores in an effort to help merchants connect with the growing number of consumers that are beginning to use their mobile devices to purchase products. Vijay Shekhar Sharma, CEO of Paytm, notes that the company will be present offline “in every nook and corner.” Paytm has already established a considerable foothold in the digital commerce space and has become quite popular with online retailers.

Company intends to add 4 million offline merchants to its network by the end of 2016

Paytm intends to sign up 4 million offline merchants for its service by the end of this year. Currently, the company’s offline merchant network includes various small retailers as well as larger organizations such as More, a goods and grocery retailer. Paytm also includes Indian Oil among its clients and consumers can use their mobile devices to pay for petroleum at gas stations in many parts of the countries.

Paytm processes 3.5 million transactions every month

mobile payments - Point-of-sale SystemRetailers using Paytm are given a sticker that they can place next to point-of-sale systems. Using a mobile devices, shoppers can scan this sticker in order to make a payment for products that they are purchasing. Paytm currently processes some 3.5 million transactions every month, totally approximately $8.5 million. The company predicts that the mobile payments being made at physical stores will grow significantly this year, with Paytm processing a predicted 35 million transactions a month by the beginning of 2017.

Consumers are becoming more interested in mobile commerce

India has become a very active mobile commerce market. Several retailers are beginning to focus more heavily on the mobile space as consumers become more reliant on their smartphones and tablets. These consumers see mobile shopping as convenient, as they can use their devices to shop for products wherever they are. As more retailers begin accepting mobile payments in physical stores, consumers are beginning to use their smartphones rather than conventional forms of commerce to pay for products that they are interested in.