Mobile Commerce

Category: Mobile Commerce

Mobile commerce fraud is on the rise in Asia

Stephen | 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 Fraud While 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.

Samsung partners with Gemalto to prepare for launch of mobile payments service in Europe

JT | September 9, 2015

Mobile payments may be growing more secure in Europe thanks to new partnership

Samsung has partnered with Gemalto, an international digital security company, in order to ease the launch of Samsung Pay in Europe. With mobile payments growing in popularity, the demand for secure services is on the rise. Consumers have expressed concern regarding the security of mobile transactions, with many opting not to use their devices to make purchases because their financial information may be at risk of exploitation. Improved security may make mobile payments services more attractive to consumers.

Samsung will leverage tokenization to make transactions more secure

Samsung will be using Gemalto’s Allynis Trusted Service Hub product for its new service. This will allow payments made through Samsung Pay to be more secure as the Allynis Trusted Service Hub makes use of a system that manages payment credentials and it leverages tokenization services. Tokenization replaces a consumer’s financial information with digital tokens, which are used to authenticate payments. Each token is unique for the transaction and does not contain actual financial information. As such, these tokens represent a safe and secure way for consumers to participate in mobile payments.

Mobile payments service has already attracted praise

Partnership - Mobile Payments Europe The new mobile payments service has already launched in South Korea, and Samsung intends to launch the service in the United States in late September. Thus far, consumers have shown interest in the service and have praised its convenience. Samsung Pay makes use of NFC technology and magnetic secure transmissions, allowing it to be used in many major retail stores. The technology powering the service was developed by LoopPay, which was acquired by Samsung earlier this year.

Improved security may ensure that more consumers participate in mobile commerce

Improving security will help mobile payments find more support among consumers. While consumers are interested in using their mobile devices to make purchases, they are wary of doing so because of the security risks associated with such actions. In the past, security breaches have shown just how much of a financial impact malicious attacks can have on consumers and businesses when it comes to the mobile payments space.