Category: Mobile Payments

Tencent turns mobile commerce into a game

| July 8, 2014

Gamification of mobile payments is a hit with consumers

Tencent, one of China’s largest Internet organizations, has been finding a great deal of success in the mobile commerce field, and this may be due to the company’s approach on the mobile space. Mobile payments have been growing in popularity, but there is little incentive for consumers to stick with one mobile service in particular over another. Tencent’s WeChat platform is one of the most widely used mobile applications in the world, but it has only very recently begun to support mobile payments. In a relatively short amount of time, the platform has managed to win consumer loyalty through its unique approach to mobile commerce.

Tencent help digitize a longstanding tradition in China

Tencent has successfully “gamified” mobile payments, making it more appealing to consumers in general. In February, Tencent introduced a new way for people to celebrate one of the oldest traditions of the Chinese New Year: The exchange of hongbao, small, red envelopes that contain money. Every years, people throughout China exchange hongbao, but technology is beginning to play a role in the evolution of this longstanding tradition. Tencent introduced a new feature for its WeChat platform that effectively digitized hongbao.

Initiative encourages people to spend more through the WeChat platform

Tencent - Mobile CommerceThe service allowed people to send and receive digital hongbao, but the service also introduced some competition to the tradition. Using WeChat, people had the ability to make a red envelope containing money available to 20 people. The first ten people to claim the envelope would get a share of this money, creating an incentive for more people to use the WeChat platform. This competition actually encouraged people to spend more money through the platform.

Gamification of mobile commerce could make Tencent a leader in the mobile field

Gamification is nothing new in the mobile field. Many successful mobile applications have managed to attract support from consumers because they were able to turn everyday activities into an enjoyable game. Tencent’s ability to turn mobile commerce into a game could make it one of the leaders of the mobile field, especially if people continue to respond well to the company’s efforts.

Brazilian mobile payments platform hacked

| July 7, 2014

Boleto reports that it has been compromised by malicious attack

Brazil’s mobile payments platform Boleto has announced that it has been hacked. The platform is the most popular of its kind in all of Brazil, which has made it a target for malicious groups seeking to exploit financial information. The attack has brought more attention to the issue of mobile commerce security and could have a major impact on whether or not people will participate in mobile commerce in the future.

Some $4 billion has been stolen from Boleto

Boleto notes that the hack occurred over a two year period, with some 500,000 transactions being compromised over that timeframe. An estimated $4 billion in mobile payments has been stolen as the result of the attack. It is still unclear whether or not all of the money involved in the attack has been obtained by the parties involved. Some of the funds may be caught in a sort of digital limbo, waiting to be accessed at a later point in time.

It may take time before money is returned to those affected by the attack

Mobile payments - hackBoleto users were tricked into clicking malicious links sent via email as part of phishing ploys. These links were delivered to several thousand consumers that make use of Boleto somewhat regularly. The attack may affect people’s trust in the platform and in mobile commerce in general. Those affected by the attack may have their money returned, but it could take a significant amount of time for the issue to be adequately resolved.

Mobile commerce security is again thrust into the limelight

Mobile commerce security is an important matter that has yet to see any significant attention from consumers. Platforms like Boleto take steps to ensure the security of the financial information that they are responsible for, but few consumers take the time to ensure that they are adequately protected. Without taking steps to protect themselves, consumers could be exposed to inordinate risks to their financial information. High profile attacks, such as those that have recently targeted prominent mobile platforms and retailers, may be enough to encourage consumers to take security more seriously.