Tag: us mobile payments

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.

Samsung to launch its mobile payments service in the US next month

| August 18, 2015

Samsung Pay will be launching in the United States next month following trials in South Korea

Samsung has announced that its new mobile payments service, Samsung Pay, will be available in the United States next month. The company has been testing the service in South Korea this month, hoping to iron out bugs before launching in a larger market where mobile payments have begun to grow aggressively. The service will function in a similar fashion to other platforms, such as Apple Pay, as it will be able to store financial information as well as data provided by retailers.

Samsung Pay to make use of NFC technology and tokenization

Samsung Pay will be leveraging NFC technology in order to facilitate transactions. This technology is capable of transmitting digital information over short distances, which is why it has become the backbone for most mobile payments systems. The service will also be using fingerprint verification in order to protect the financial information of its users. Further protection will be provided in the form of digital tokens, which are used to replace consumer financial data in order to protect it from exploitation.

Samsung will be competing with Apple in the mobile payments space

Mobile Payments - SamsungThe launch of the new service represents another step forward concerning Samsung’s plans for mobile payments. The service is meant to compete directly with Apple Pay, which is already available in the United States and will soon be available in other markets. Apple has managed to establish a powerful lead in the mobile payments space, largely due to the security that the company has injected into the service.

Mobile payments services continue to face significant challenges that prohibit their success

Though Apple has managed to establish a lead, it still faces many of the challenges that are preventing other mobile payments platforms from finding widespread success. Security is one of the more significant of these challenges. In the past, high profile cyber attacks have called into question the safety of mobile payment platforms, which has limited the appeal of these services among consumers.