Author: Stephen

Mobile commerce fraud is on the rise in Asia

| September 10, 2015

Smartphone penetration leads to the rise of mobile commerce

In Asia, smartphone penetration is accelerating and these devices are becoming more popular for those that are interested in shopping online. By 2018, Asia is expected to account for half the world’s mobile users, with many people beginning to use their smartphones and tablets to play games, purchase products, and use social networks. As mobile adoption rises, however, fraud is becoming a greater problem in the mobile commerce space in Asia.

Japan, South Korea, and China have become very attractive mobile markets

Currently, Japan and South Korea are leading the way when it comes to mobile commerce adoption, with approximately 50% of both country’s populations engaging in mobile transactions. China has also become a very prominent mobile commerce market. In the first quarter of this year, mobile sales in China reached $58.4 billion, according to a recent report from iResearch. Companies are beginning to invest more heavily in the mobile space, and this is making the sector more attractive to malicious parties.

Mobile commerce fraud is becoming more common

Mobile Commerce FraudWhile mobile commerce represents only 14% of all transactions being made in Asia, it also accounts for 21% of all fraudulent transactions being made through mobile devices. As fraud continues to grow, mobile commerce merchants are beginning to feel extreme financial pressure. Merchants incur costs of $3.34 for every dollar that is being spend on a fraudulent mobile transaction. This is 27% higher than the costs merchants would incur from a fraudulent transaction being made on a traditional PC.

Mobile security is becoming a priority for businesses and consumers alike

Several merchants in Asia are beginning to get involved in the mobile commerce space, but they will have to find ways to better protect consumer information. Security risks have been a major concern for consumers, and these concerns have slowed the adoption of mobile commerce platforms to some degree. Several companies offering mobile payments services have found ways to improve security through the use of biometric technology, which leverages biologic information, such as fingerprints, in order to protect transactions and consumer information.

UK consumers see promise in mobile commerce

| September 8, 2015

Survey shows that many consumers expected to make daily mobile purchases within the next five years

The United Kingdom’s Lloyds Bank has released the results of a recent survey, through which it saw an increase in the interest consumers have in mobile commerce. According to the survey, approximately 34% of mobile consumers expect to make a payment with their device every day within the next five years. As more retailers become mobile-centric and offer new shopping experiences, consumers are beginning to use their devices to shop online more frequently.

Companies see new opportunities in the UK market

Several companies are beginning to see promise in the UK’s mobile commerce space. Apple is one such company, which believes that its Apple Pay service will do well in the country due to the growing number of mobile shoppers. Samsung is another, which intends to launch its new Samsung Pay service in the United States within the coming months. The company sees promise in the UK, but has not yet announced when the mobile payments service will be launched in the UK.

Older consumers are more interested in mobile commerce

UK Consumers - Mobile CommerceThe survey from Lloyds Bank shows that older consumers are more interested in mobile commerce than their younger counterparts. According to the survey, of those aged over 45, 59% believe that they will be using their mobile devices to make daily purchases. By comparison, 37% of those between the ages of 18 and 44 believe this. Older consumers, especially those with lengthy commutes, seem to be more interested in mobile shopping because of the convenience that it represents.

Security remains a top concern for consumers that want to use their mobile devices to shop online

Among those surveyed that do not currently participate in mobile commerce, 44% said they were concerned about the security of their financial information. Lack of security could leave consumers exposed to exploitation and fraud. This concern has prevented many people from making a mobile purchase, but the rise of biometric technology, which uses biologic information for the sake of security, may be changing that in the coming years.