Author: Denny

A recent market analysis has revealed that smartphones will become a major game changer in shopping.

Though slow to get started, mobile payments could soon prove to be extremely important to the retail shopping experience, as consumers begin to feel that using the devices as digital forms of credit and debit cards, as well as for loyalty programs, is trustworthy and convenient.

This trend would dramatically change the consumer experience as everything will be contained in one place.

Though wallets are stored, locked away, or left behind, in various situations, the odds are that a person will always have his or her smartphone in hand or pocket. Retailers are already using mobile commerce to appeal to online shoppers who access the internet with their smartphones and tablets, and now they are beginning to see the potential benefit from receiving transactions through these devices, as well.

Some feel that mobile payments could be the biggest revolution in retail in many decades.

A recent Business Insider report has stated that the “old dream of the digital wallet is coming true in a very mobile-led fashion.” The report indicated that by the end of last year, in the United States there were already approximately 7.9 million consumers who had adopted a system compatible with NFC technology (near field communications) or QR codes. These include examples, such as MasterCard PayPass, Visa Wallet, Google Wallet, and others that use apps for processing the transactions.

Equally, mobile payments through credit card readers on devices, such as PayPal, Square, and I Love Velvet reported processing transactions worth more than $10 billion last year.

Another report, this one recently issued by Gartner, has predicted that around the world, mobile payments transactions will break the $235 billion mark by the end of this year. That would be an increase of 44 percent over the figure from 2011.

When it comes to examples of mobile payments successes, Starbucks is typically said to be the leader as it has effectively implemented a range of different types of transactions, including everything from loyalty cards to QR code based purchases with a refillable retailer account.

Report shows consumers want mobile commerce platforms from their banks

A new report from the Future Foundation, a global research firm, suggests that consumers in the United Kingdom may be more willing to participate in mobile commerce if payment platforms came directly from their banks rather than from third party groups. Mobile commerce has been gaining prominence around the world, but many consumers remain wary of paying for products using their smartphones and tablets. These consumers often cite security concerns and worry that their financial information may be put at risk through their participation in mobile commerce.

Banks are growing more interested in mobile payments

Many banks and financial services firms have shown a great deal of interest in mobile commerce. These organizations typically embrace mobile payments and allow for consumers to use their accounts to make such transactions. Few of these banks offer their own mobile payment platforms, however, opting instead to support those being offered by third parties, such as Google and Isis. In the United Kingdom, this may be driving consumers away from mobile commerce.

Consumers may have more confidence in mobile commerce if banks get involved

The report shows that 57% of consumers would have more trust in mobile commerce applications coming from their own banks. The report also shows that approximately half of the country uses a mobile device to purchase products online. Consumers claim that they would spend more money in mobile commerce if they could trust their applications. Therefore, if banks begin supporting their own mobile commerce platforms, transactions made through mobile devices may see aggressive growth.

Strict regulations foster secure environment for mobile payments

One of the reasons that consumers would trust mobile commerce applications from their banks has to do with the regulations that exist to manage these banks. Financial services firms are saddled with a great deal of responsibility and must adhere to strict standards that are generally imposed by government organizations. These regulations put a major emphasis on security, which could foster confidence among consumers when it comes to mobile commerce.