Tag: us mobile commerce

Starbucks leads the way in mobile payments

| August 5, 2013

Starbucks finds success on the mobile payments front

Mobile payments are becoming more common in the U.S., especially as businesses show interest in new forms of commerce and begin catering to consumers with smartphones and tablets. One company has managed to establish a powerful lead on the mobile payments front and may serve as a powerful example of what can be accomplished by engaging mobile consumers. That company is Starbucks, which has been involved in mobile commerce since teaming with mobile commerce firm Square only a few short years ago.

10% of company’s transactions come from mobile devices

Starbucks and Square have developed a mobile payments system that leverages QR codes and, in some cases, NFC technology to allow consumers to pay for products with nothing more than their smartphone or tablet. During the early stages of the company’s endeavor, Starbucks did not expect to see a great deal of support for its mobile commerce initiative. Consumers, however, proved that they were more than willing to embrace the service being offered by the company. Now, mobile payments represent 10% of the company’s total transactions in the U.S.

Mobile Payments at StarbucksConsumers flock to Starbucks’ mobile commerce service

Part of the reason consumers seem to enjoy mobile payments is due to the convenience that it represents. Consumers can pay for nearly anything by simply waving their mobile device at a payment terminal. Starbucks also offers a reward program for those that make mobile payments, further piquing the interest of consumers. The company notes that many of its consumers happen to be tech-savvy individuals that are interested in engaging in new technologies they are not necessarily familiar with. This may be yet another reason why Starbucks has managed to find success in the mobile commerce arena.

Many consumers concerned over security of financial information

While mobile payments have been growing popular in the U.S., many consumers have shown resistance to the idea of mobile commerce. Several platforms designed to cater to this sector, such as Google Wallet, have failed to win any significant support from consumers. Many people cite security concerns for their lack of interest in mobile payments, while others consider mobile commerce to be nothing more than a passing fad.

Mobile payments set to reach $1 billion in the US

| July 19, 2013

Mobile payments to see strong growth this year

Mobile payments are poised to see explosive growth in the U.S. this year. As more consumers show favor for shopping online using their mobile devices, their proclivity for mobile payments is beginning to show a dramatic increase. A new report from eMarketer, a leading market research firm, suggests that U.S. mobile payments will reach new heights this year and will continue to grow in the near future. Much of this growth is being driven by the focus businesses have been putting on mobile commerce.

Report highlights the future possibilities of the mobile commerce space

According to the report, U.S. mobile payments will surpass the $1 billion mark by the end of 2013. Mobile transactions will be coming from scanning codes with smartphones and tablets, using NFC-enabled devices, and by accessing e-commerce platforms through a device’s web browser. The report predicts that mobile payments will continue to show aggressive growth and account for more than $58 billion by the end of 2017.

Mobile Payments growthMobile payments face many challenges

While the report suggests a promising future for mobile commerce, it also notes that challenges that this sector has been faced with recently. Over the past year, the mobile commerce space has become inundated with a variety of platforms that offer convenient payment support to consumers. While there is no shortage of variety, none of these platforms have yet established a substantial lead over the others. The problem is that most of these platforms compete on a technological level, meaning that they are not universally accommodating to those interested in making mobile payments. The report suggests that the competition that these platforms create will keep growth in check until 2016.

NFC considered a wild card for many

The report also suggests that continued focus on NFC technology could be problematic for the future of mobile commerce. NFC has been subjected to harsh criticisms concerning security and efficiency. While most mobile commerce platforms are based on the technology, eMarketer notes that the technology itself is considered a “wild card” by those investing in mobile payments.