Category: Mobile Payments

Tokenization may help make mobile payments more secure

| October 23, 2014

Bell ID has launched its new tokenization platform in order to support mobile commerce security

Bell ID, a payment credential management organization, has launched new software that could introduce more security to the mobile payments space. Security has been a problem in the mobile world for several years now. While there are many effective security solutions currently available in the mobile world, relatively few of these have been able to offer consumers interested in mobile commerce with the protection they need. Tokenization may be the solution to this problem.

Digital tokens remove the need for financial information

Tokenization is a relatively simple concept that involves replacing personal financial information with digital “tokens.” These tokens are used to authenticate a transaction and then are deleted after they have served their purpose. This removes the need for retailers and other businesses to access or store a consumer’s financial information, allowing for more secure in the mobile payments sector. Bell ID’s new Tokenization Manager software may help boost the popularity of tokenization.

Tokenization Manager to help businesses use digital tokens as a way to verify transactions

mobile payments and securityThe company’s Tokenization Manager has already seen significant use by various NFC-based mobile payment solutions. The solutions use digital tokens as a replacement for credit and debit cards, as well as other financial information. Many organizations believe that digital tokens will mitigate the prevalence of large-scale cyber attacks, such as those recently targeting Target and Home Depot. These attacks seek to gather and exploit financial information, but malicious groups will not be able to use tokens in any way.

As mobile payments become more secure, consumers and businesses will become more likely to participate

Tokenization is becoming so popular that companies like Visa and MasterCard have begun to support the concept. Tokens could finally bring a high degree of security to mobile commerce, which has suffered over the years due to lackluster security support. As mobile commerce becomes more secure, a greater number of people and businesses are likely to enter the sector. Several companies have delayed their mobile plans due to security issues within the mobile space.

US retailers may be missing out on a major mobile commerce opportunity

| October 23, 2014

Retailers avoiding the mobile space could miss out on a serious revenue opportunity

The holiday season is coming and U.S. retailers could be missing out on one of the greatest mobile shopping opportunities in recent history. A new report from Jumio predicts that retailers could miss out on $8.6 billion in revenue due to outdated mobile checkout solutions. Many retailers have made attempts to engage mobile consumers by offering them new payment solutions that are mobile-centric, but old and inefficient solutions could make it hard for consumers to actually purchase products online and in physical stores.

20% of all online sales made during the fourth quarter of this year may come from mobile devices

According to data from the National Retail Federation, holiday sales for 2014 are expected to reach $616.9 billion, growing 4% over what they had been during the 2013 holiday season. An estimated $105 billion in revenue is expected to come from e-commerce. Another report from IBM suggests that approximately 20% of all online sales made during the fourth quarter will come from a mobile device. Retailers that are not prepared to engage mobile consumers could lose out on a very promising opportunity.

Mobile commerce continues to experience strong growth in the US

Mobile commerce - retailers missing outMobile commerce has become quite popular with consumers. Mobile shopping is often seen as more convenient and while most people continue to favor visiting physical stores, the demand for mobile payment services has been growing rapidly. Many consumers plan to do their holiday shopping online, using their mobile devices to research and discover products they may be interested in. Some will also be looking for ways to make their shopping experience more convenient and avoid crowds at stores. Mobile payment terminals can offer this convenience and may help make a retailer more attractive to consumers.

Outdated commerce systems cause frustration among consumers

The report notes that many people that shop online using a mobile device end up abandoning their purchases. This is due to frustrations with outdated commerce systems that are still being used by retailers. These systems make it difficult for people to complete transactions when they try to purchase products from their smartphones and tablets. Many of these systems are designed to be used on conventional computers and not mobile devices.