Tag: united states

Mobile payments see little growth during the holidays

| December 11, 2015

Relatively few consumers are using their mobile devices to purchase products online and in physical stores

Mobile payments has become a powerful force in the retail sector, but many consumers remain loyal to conventional forms of commerce. During the holiday season, many retailers saw a significant increase in the number of mobile shoppers they served, but number of mobile consumers was lower than what many companies had been anticipating this year. According to data from Bankrate, only 14% of smartphone owners in the United States actually used their device to make a mobile payment during the Thanksgiving shopping weekend.

28% of smartphone owners made a mobile payment during 2015

Information from the Federal Reserve also highlights the relatively sluggish activity being seen in the mobile payments space this year. According to the agency, only 28% of smartphone users made a mobile payment throughout 2015. Mobile payments were particularly popular among millennials, who have become quite comfortable with mobile technology in general. Older consumers have been slow to embrace mobile payments, largely due to security concerns and basic disinterest.

Security continues to be a major problem for the mobile payments space

Mobile Payments - SlowSecurity has been a cause for concern within the mobile payments space for years. Many consumers have expressed worry that their financial information could be at risk if they make a mobile payment. Retailers and companies responsible for mobile payment platforms have been working to ensure consumer information is kept safe, but sophisticated cyber attacks has made this a relatively difficult endeavor to accomplish. In order for mobile payments to thrive, security measures must be improved, ensuring that the financial data of consumers is guarded against exploitation.

More consumers are expected to make a mobile transaction as new services become available

While the mobile payments sector may have seen relatively slow growth during this year’s holiday season, stakeholders in the growing market expect to see more robust growth in 2016. Next year, promising new mobile payments platforms are expected to enter into new markets, where they will find a consumer base that is willing and eager to use their mobile devices to make purchases.

Congress is looking into mobile payments security

| December 3, 2015

House Energy & Commerce Committee is looking into concerns regarding mobile payments security

Mobile payments will reach a new high this year in the United States, powering by the growing adoption of new payment services that allow consumers to shop online more conveniently. According to recent reports from CNET and Juniper Research, some two-thirds of adults in the country now own a smartphone, with approximately 36 million people expected to make a mobile transaction this year. This information was presented to a hearing of the House Energy & Commerce Committee, which has been expressing concerns regarding mobile payments fraud.

Security continues to be a significant problem in the mobile space

Security in the mobile payments field has been a point of concern for federal officials for some time. Many consumers have become the victims of fraud in the past, following high-profile data breaches that targeted some of the country’s largest retailers. The hearing found that while most mobile payments solutions are, indeed, quite secure, they do not have the same legal and legislative protections that more conventional payment solutions enjoy.

Committee will not yet be taking legislative action on mobile security

mobile payments and securityThe House Energy & Commerce Committee has noted that the hearing was a preliminary hearing concerning mobile payments security. The committee has not yet announced plans concerning what can be done to improve security. As such, there will be no legislative action taken on issues regarding security for the time being. The committee is seeking more information from stakeholders in the mobile payments space. This information could be used to improve the overall mobile payments space, ensuring that consumer information is well protected in the future.

Ensuring the security of consumer information remains a top priority in the mobile space

The mobile payments space is still relatively new. While many of the organizations participating in this space have extensive experience regarding commerce, they are finding the mobile space to be exposed to significant risks that they are still attempting to adapt to. More regulatory oversight may be needed to ensure consumer protection, but the federal government must collect more data before taking any significant legislative action on the matter.