Apple could enter into mobile commerce arena with biometric technology
Apple may be gearing up to make a strong push into the mobile commerce sector. The company has had an interest in mobile payments for some time, but has taken a cautious approach to mobile commerce due to concerns regarding NFC technology. Apple had claimed that the technology was simply not capable to meet its needs and had been looking for an effective alternative. The company may have found that alternative in biometrics.
AuthenTec technology may be a boon for Apple
In 2012, Apple acquired AuthenTec, a company that had specialized in using biometric technology for security purposes. The acquisition gave Apple access to the company’s technology and enables Apple to make use of this technology as it sees fit. AuthenTec’s fingerprint sensors were particularly attractive to Apple, which believes such technology could be an effective way to make mobile commerce more secure. Such technology could also make security for mobile devices somewhat more convenient as it would eliminate the need for consumers to input their passwords multiple times a day.
iPhone 5S photos suggest changes to hardware
Apple is expected to release the iPhone 5S later this year and leaked images of the device have recently found their way to the Internet. These images show some modest changes to iPhone hardware, suggesting that there may be room for biometric technologies and other, similar features. There is no guarantee that this will be the case, of course, as Apple has a track record of making drastic renovations to iPhone hardware before the official launch of a new generation of these devices.
Apple shows some interest in mobile commerce
Rumors had suggested that the iPhone 5 would be equipped with NFC technology, but Apple dispelled these rumors and garnered harsh criticism from consumers due to the fact that the device did not feature NFC support. The lack of NFC technology has kept the iPhone 5 from serving as a mobile commerce platform. This has set Apple somewhat behind other companies in this sector, but Apple may soon be able to make a powerful entry into mobile commerce if its biometrics initiatives are successful.
PayPal continues to dominate the mobile payments field
The mobile commerce sector is rife with competition. The growing popularity of mobile payments of consumers has encouraged numerous startups to emerge, each looking to beat one another in the hopes of gaining consumer support. The problem, however, is that there is already a well established commerce platform that has muscled its way into the mobile sector: PayPal. The company has been involved in mobile payments for years before mobile commerce began gaining significant attention around the world and its presence in the sector may be too much for smaller companies to handle.
Competition may be too much for startups to handle
Consulting firm Crone Consulting LLC suggests that the mobile commerce market has become over saturated. There are numerous startups working against one another to appeal to consumers. Many of these organizations are offering mobile payments processing systems that are fee-free. While this may be attractive for merchants that are reaching out to mobile consumers, the fact that these startups are not making any money off these transactions has created some uncertainty among consumers.
Venture funding may not be an adequate option for mobile commerce startups
Many mobile payments startups are backed by venture funding. When this funding runs out, however, these companies may be unable to generate a profit or cover the costs associated with the services they offer. Some may be forced to begin charging a fee to process mobile transactions, which may lead to an exodus of clients they acquired through the promise of fee-free services. Others may simply close shop because they cannot afford to continue operation. Those that are determined to persist in the market will have to face PayPal, which boasts of $20 billion in mobile payments on a yearly basis.
Companies may find some success by focusing on very small niches in the market
According to a recent study from market research firm Gartner, the mobile commerce market is expected to reach $235.4 billion in global transaction value by the end of this year. The market is expected to see promising growth throughout the near future, a fact that has generated a great deal of encouragement for those interested in entering the mobile commerce field. Startups may find it difficult to find a foothold with giants like PayPal crowding the field, however, which has led some companies to focus on very specific niches in the mobile payments sector in order to find some degree of success and solvency.
