Tag: mobile payments australia

Retailers in Australia embrace mobile payments

Retailers are flocking to mobile commerce more quickly than consumers are in Australia

Australian retailers are adopting mobile payments faster than consumers, according to Vend, a New Zealand vendor that develops point-of-sale tools for traditional retail stores. Consumers have been showing relatively strong interest in the concept of mobile commerce, but only a modest amount of these people have actually begun participating in mobile shopping. Retailers, however, have been aggressive in their adoption of mobile commerce, hoping to engage a consumer base that is becoming more mobile-centric.

Retail sector continues to aggressively adapt to changes in the business landscape

Australia’s retail sector has always been somewhat ahead when it comes to matters of commerce. Retailers in the country are often quick to adopt new technology that allows them to better engage consumers in a dynamic way. The problem, however, is that consumers are not as enthusiastic when it comes to some of the moves that retailers are making. Mobile commerce is still relatively new and while retailers have high hopes for the mobile space, many consumers are wary of the threats that exist therein.

Consumers are still wary of mobile commerce and its security issues

Mobile payments embraced in AustraliaMany people have cited security issues as their reason for not participating in mobile commerce. Because mobile commerce involves the trafficking of financial information over mobile platforms, this sector has become particularly attractive to malicious groups that would be interested in exploiting this financial information. In Australia, consumers are more apt to favor traditional forms of payment rather than mobile forms. Part of this mentality may be due to poor experiences that consumers may have had with mobile commerce platforms in the past.

Many consumers are comfortable with traditional payment methods and have had bad experiences with mobile commerce platforms

Changing consumer behavior is not likely to be an easy feat. Retailers have been promoting mobile payments for some time but have found relatively little traction. Consumers have become quite comfortable with the way they shop and pay for products. New forms of payments can make some people uncomfortable and unwilling to use mobile platforms while shopping. Poorly designed mobile commerce platforms can also have an adverse effect on people’s opinions concerning mobile commerce.

Mobile payments have increased by 5000 percent in Australia

PayPal has revealed that over the last three years, the growth in the use of this technology has exploded.

According to the latest Secure Insight report from PayPal, smartphones are becoming an extremely important part of the overall shopping experience, as mobile payments are being greatly embraced by Australians.

This has reached the extent that in three years, they have grown by a factor of 5000 percent.

PayPal explained that this mobile payments growth rose from a base of $37 million. Beyond Australia, the wider online retail market experienced an 11 percent growth to bring its own figure to $36.8 billion. When compared to retail transactions, overall, this is significant, as the total figure had been estimated at only 2 to 3 percent.

This demonstrates that mobile payments are rising far more quickly than transactions as a whole.

Mobile Payments AustraliaJeff Clementz, the managing director for PayPal Australia, has explained that the last three years that the company has experienced in retail in the country had been focused on expanding e-commerce. However, he has said that the next phase is now underway and it will concentrate on solutions for the point of sale.

He explained that “Technology development has driven deep structural change in Australian retail.” Clementz also went on to add that “Where once there were few retailers that could truly be called omni-channel, today there are many connecting with consumers in-store, online and on the go.”

The focus that PayPal has now taken is to change the way that the cash register experience works for both retailers and consumers. This aligns with its recent announcement of its PayPal Beacon mobile payments service. Within it, consumers are provided with a hands-free experience. It allows customers to head into a brick and mortar shop, choose their products, and then pay for them at the checkout counter without ever taking their wallets or their devices out of their pockets or purses.

The hope is that these mobile payments will provide a much faster, smoother, and more convenient transaction to enhance shopping, overall, and simplify the purchasing experience to a point that has never before been achieved.