Tag: m-commerce

Mobile commerce could eventually replace conventional forms of commerce

Mobile payments may actually do away with cash in the relatively near future. The Institute of Electrical and Electronics Engineers (IEEE) has released a new report that highlights security issues in the mobile commerce space. The report does show that security issues are quite serious, but the mobile commerce space may overcome these issues to outpace traditional forms of commerce and become favored among consumers. IEEE surveyed 2,000 technology enthusiasts for the report.

Consumers remain concerned about security risks that exist in the mobile space

According to the report, 70% of those that the company surveyed believe that mobile payments will be secure enough to replace cash by 2030. Many consumers are already interested in new payment services, but they rarely use these services due to concerns regarding their security. Consumers believe that their personal information could be at risk of exploitation if they use their mobile devices to make purchases. These are not unfounded worries, as mobile payments services have been targeted by malicious groups in the past.

Consumers are worried about unauthorized purchases and malicious QR codes

Of those surveyed, 46% said they were worried that their payment information would be stolen. Another 33% claimed that they were worried that unauthorized payments would be made through mobile services. Approximately 13% were worried that they would accidentally make a payment through an NFC sticker or QR code. Consumers are also concerned that their mobile devices may be infected by scanning a malicious QR code. These concerns have come together to discourage consumers from participating in mobile commerce.

Companies are beginning to aggressively address security issues in order to make mobile commerce safer

While consumers are worried about their financial information, companies in the mobile commerce space are beginning to address these concerns. Several have begun using biometric technology to protect their mobile payments services. Tokenization is also becoming popular in the mobile commerce space. This involves replacing consumer information with digital tokens, which can be used to authenticate mobile transactions.

Online shoppers may find it much more convenient to employ their devices for making digital payments.

Visa has now stepped forward in ensuring that its digital Checkout for payments through electronic and mobile commerce will be more friendly to customers using smartphones and tablets as it will allow purchases to be completed by simply sliding a virtual image of their plastic credit cards across their device screens.

This has been done in the hopes that it will provide better competition with its rivals in this market.

The Visa Checkout digital payments service was first launched in 2014 and is meant to take on PayPal within the e- and mobile commerce space. Retailers offer this option with an embedded button on their apps and sites, making it possible for purchase payments to be made without ever having to navigate away from their current location. The original format of the service meant that users would need to enter a username and password on the screen in order to complete a mobile payment transaction. However, the newest feature has eliminated that step and has further streamlined the entire process.

To complete a mobile commerce checkout, users swipe and image of their card to the right before entering a password.

According to Visa, pilot tests of the m-commerce payments service have shown that the swipe feature makes shoppers twice as likely to complete the checkout process instead of abandoning their carts.

At the first launch of this service, the button will be available only to merchants who are selling digital products and services or that have items that are purchased online so that a customer can pick it up at the nearest store location. That said, Visa has stated that it will be expanding its service within the next few months in order to make it possible for merchants to sell products that will be shipped to their customers.

The senior vice president of digital solutions at Visa, Sam Shrauger, discussed this new mobile commerce feature and said that “This new experience brings digital payments one step closer to the ease, trust and familiarity that consumers have long valued from Visa in the physical world.”