Category: Mobile Payments

Banks could see fee revenue drop because of mobile payments

| September 30, 2014

Australians planning to purchase a new iPhone could avoid bank fees

The new iPhone 6 may have an impact on bank fee revenue in Australia, according to a report from Roy Morgan Research. The report shows that more than 1.5 million consumers throughout Australia have plans to purchase an iPhone within the next 12 months. While buying a new mobile device would not usually affect banking revenues, the new iPhone will serve as a mobile payments platform, supported by the Apple Pay service. The service could do away with banking fees entirely.

Report shows that many people planning to buy a new iPhone are already aware of mobile payments

The report shows that many people planning to purchase a new iPhone are already familiar with mobile payments. An estimated 29.4% of consumers in the country make a mobile payment regularly throughout any given month and these people are likely to embrace Apple Pay with enthusiasm. Many financial institutions are supporting the new payment service, but in doing so they may see reductions in the revenue they acquire through fees.

Younger consumers may be more apt to use Apple Pay

Australia Mobile PaymentsThose planning to make use of the Apple Pay service in Australia are also considered to have a “high spend potential.” The report shows that many of these people have a higher than average household income, but are not necessarily knowledgeable about mobile commerce. Younger consumers are expected to use the Apple Pay service more regularly, while older consumers may favor traditional commerce platforms that they have become quite comfortable with.

New mobile commerce services allow consumers to avoid bank fees

Mobile payments are becoming more common throughout Australia and the demand for mobile services is on the rise. Banks are beginning to accommodate this demand by offering their support to services like Apple Pay, but in doing so these banks may be exposing themselves to new risks. One of these risks involves a drop in fee revenue. Services like Apple Pay often allow consumers to avoid certain services offered by banks, which allows people to also avoid bank fees.

Gemalto tapped to make mobile payments more secure in China

| September 29, 2014

China Mobile calls upon Gemalto to help make payments more secure for Chinese commuters

Gemalto, a leading provider of digital security solutions, has been chosen by China Mobile to protect consumers using mobile payments for mass transit in Beijing, China. The company will be using its UpTeq NFC Multitenant SIMs in order to protect consumer information when they are making payments for transportation services. The SIMs that mobile consumers will be using will come pre-loaded with the Beijing transit application, which is used by more than 22 million commuters every day.

Transportation app will allow consumers to easily make payments for transit services

The application has been a boon for those making daily commutes. The app allows people to pay for transit services using their mobile devices, making the payment process more convenient. China Mobile has been a prominent supporter of mobile payments in recent years and believes that the public transportation space could use more support in its engagement of mobile consumers. Ensuring that payments made from a mobile device are secure could encourage more people to take advantage of the mobile services that the public transit space is offering.

New SIMs will provide mobile devices with NFC capabilities

China Mobile Payments SecurityThe UpTeq NFC Multitenant SIMs will be able to host a wide range of mobile services, including couponing and loyalty programs. The SIMs will be able to give most smartphones NFC capabilities, allowing them to interact with NFC-based payment and marketing initiatives. China Mobile users will also be able to make use of NFC-enabled mobile applications that can be downloaded through the organization’s 4G networks.

Improving security may help make mobile commerce more attractive to consumers

Security is one of the top priorities for companies that are beginning to enter the mobile commerce space. Many consumers have been wary of mobile payments because of the lack of security solutions available for new payment platforms. As security increases, more consumers are likely to participate in mobile commerce. Gemalto has significant experience in matters of security and may be able to help promote mobile payments among Chinese consumers.