Tag: mobile payments australia

Mobile payments may soon see explosive growth

Mobile payments may be set to see explosive growth in Australia, at least among retailers. Mobile technology has established a strong presence in Australia, just as it has done throughout much of the world. Consumers have become heavily reliant on smartphones and tablets, favoring these devices when it comes to shopping and, in some cases, banking. This trend has been a double-edged sword for retailers, some of whom have expressed concern that the growing prevalence of mobile commerce is keeping consumers from visiting physical stores. The Australian Retailers Association sees mobile payments as a promising opportunity, however.

Retailers becoming more interested in mobile commerce

The organization notes that traditional retailers — those with physical stores — are beginning to look for ways to reduce transaction times and ensure consumer loyalty. The advent of mobile commerce has made shopping somewhat easier for consumers throughout the country, many of whom can find everything they need online and have products delivered to their homes. By embracing the convenient nature of mobile technology, retailers may be able to secure the loyalty of consumers through the provision of simple services and support of mobile payments.

Small retailers following the example of their larger counterparts

The Australian Retailers Association suggests that embracing mobile payments has become relatively common among larger retailers. This has created confidence among smaller companies that are beginning to consider mobile commerce as the industry standard. As such, growing numbers of small retailers are expected to adopt mobile payments in the coming years, leading to a dramatic increase in the mobile commerce activity of the country.

Companies seek to spread mobile commerce throughout Australia

Mobile payments have been seeing strong growth in Australia due to the numerous financial organizations that have been working to bring mobile commerce to the country. PayPal is one such group and has been testing a new mobile commerce platform in several countries. This platform is designed with retailers in mind, providing them with a way to offer comprehensive services to consumers that are tethered to smartphones and tablets.

The company has announced the start of a trial program for small transactions in some stores.

Should a new Eftpos mobile payments trial prove to be successful, it may provide the opportunity to Australians to make digging through a purse or a pocket for change nothing more than a distant memory.

This is because its pilot program is to allow smartphone owners to use their devices to make small purchases.

The mobile payments trial will be run in certain Australian stores beginning in July. According to the CEO of Eftpos, Bruce Mansfield, if this program proves to be successful, it could lead to a much broader roll out in which the use of smartphones for this purpose could become mainstream. He explained that it could actually help to reduce the need for cash in smaller denominations.

Eftpos believes that the convenience and speed of mobile payments will play very well in its favor.

Mansfield explained that “This type of mobile payment could displace low value cash. It’s quicker, it comes down to speed and convenience and potentially a reward. We’re certainly hopeful.”

This pilot project is the start of a five year agreement with mobile payments company, C-SAM. It will use technology similar to that which has been implemented by Visa PayWave. This near field communication tech (NFC technology) will be combined with apps in order to allow shoppers to use a form of digital wallet.

The CEO went on to specify that the reason that they have faith in the use of mobile payments in this way is that consumers in Australia “already have a love affair” with their smartphones. Now, they’re seeking to broaden the various ways in which interactions through smartphones can occur as an element of the overall shopping experience, and to take part in a greater amount of that interaction.

Beyond mobile payments, Mansfield also saw opportunities in providing shoppers with the ability to create lists of items they need, locate products, and find and use loyalty offer or reward programs using their smartphones. This way, consumers can combine their favorite device with a larger number of the shopping activities that they do in a regular day.