Tag: china

Mobile commerce fraud is on the rise in Asia

| 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 FraudWhile 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.

China is the world’s largest mobile commerce market

| August 31, 2015

Report shows that China is the fastest growing mobile commerce market in the world

China has become the world’s fastest growing and largest mobile commerce market, according to a report from Juniper Research. The report shows that online purchases from mobile devices have increased significantly over the past few years, with many consumers favoring the convenience of mobile shopping. E-commerce is also growing quickly, as more people show their interest in shopping from home rather than visit physical stores. Doing so allows them to avoid crowds and shop at their leisure.

Online sales in China are expected grow by 60% in China by 2018

Juniper Research predicts that annual purchases made through mobile devices and desktops will reach 125 billion globally by 2018, which China accounting for the majority portion of the purchases being made. By 2018, online sales in China will grow by more than 60%. Juniper Research suggests that the primary driver of this growth is “commuter commerce,” which refers to those with long commutes relying on their mobile devices to get their shopping done. Rapidly expanding mobile Internet networks are also making it easier for consumers to shop online wherever they may be.

China’s e-commerce sales reached $450 billion last year

China Mobile Commerce MarketThe report shows that China has already overtaken the United States when it comes to mobile purchases. Last year, there was some $450 billion in e-commerce sales in China compared to the $296 billion in e-commerce sales made in the United States. Of the companies that have found success in China’s mobile commerce market, Alibaba has, perhaps, established the greatest lead over others. This retailer alone saw more than 330 million consumers use its platform in 2014.

Security risks may have a dramatic affect on China’s growing mobile commerce market

While mobile commerce is growing rapidly throughout China, security risks may eventually slow the growth of the market. Serious risks are beginning to emerge that threaten the safety of consumer financial information. Businesses are also being threatened by these risks, which is beginning to affect their enthusiasm about mobile commerce in general.