Tag: mobile commerce security

Tokenization may be driving growth in mobile payments

| March 24, 2015

Visa believes that digital tokens are making consumers more comfortable with mobile payments

Tokenization is a leading driver behind the adoption of mobile payments, according to Visa. The company’s global head of mobile products, Bill Gajda, believes that the introduction of tokenization is making the mobile payments space more secure. As such, consumers are more likely to participate in mobile commerce and businesses are feeling more comfortable about protecting the information of these consumers. More platforms are expected to adopt tokenization in the coming years, with the new Samsung Pay service supporting digital tokens when it launches later this year.

Digital tokens serve as a way to protect the financial information of consumers

Tokenization is a relatively new practice in the mobile commerce space. The process involves attributing digital tokens to financial information at the time a mobile transaction is made. Most mobile payments platforms require users to link their credit or debit card information so they can be used. When a transaction occurs, a sequence of numbers is attributed to this information, which can be used to authenticate a payment. Through this process, no financial information is actually passed from consumer to merchant, making the transaction sector for all parties involved.

Mobile payments space may grow more secure through the use of digital tokens

Mobile Payments Driven ForwardVisa believes that tokenization will be a boon for the mobile payments sector, which has had a struggle with security issues over the past few years. Visa believes that more platforms will embrace tokenization as more consumers become involved in mobile payments. Apple Pay is one of the most prominent services that supports tokenization. Apple partnered with Visa in order to make use of digital tokens, which has significantly improved Apple Pay’s already considerable security features.

Samsung to use Visa’s tokenization service for its new payment platform

Samsung will also be working with Visa to make digital tokens possible. Samsung Pay is slated to launch later this year and will compete with other mobile payments services that are available on the market. The success of the platform may draw yet more attention to the use of digital tokens and encourage other companies interested in mobile commerce to make use of tokenization as well.

Consumers still wary of mobile commerce

| March 19, 2015

Consumers are not completely comfortable with mobile payments yet

Consumers may be somewhat uneasy about making a mobile purchase, according to a recent survey from Baird Equity Research. Though mobile commerce has been gaining more attention, consumers still prefer to use more conventional forms of commerce when making purchases, especially in physical stores. Consumers may still be wary of the security issues that exist in the mobile commerce space, though many people have been growing more comfortable with the concept of making purchases with a mobile device.

Young consumers seem to be the most comfortable with the idea of mobile commerce and shopping online with smartphones

According to the survey from Baird Equity Research, four in 10 consumers in the United States have participated in mobile commerce. Approximately 10% of consumers said that they make an in-store purchase with their smartphones at least once a month. Three in 10 consumers said that they make a mobile payment online once a month or less. Those between the ages of 18 and 24 are the most likely to participate in mobile commerce as they are the demographic most comfortable with mobile technology.

Many people are concerned about security and lack of retail support

Consumers wary about mobile commerceThe majority of consumers are not convinced that mobile payments are better than more conventional forms of commerce. Using a credit or debit card or paying with cash is often considered simpler. Cash is also considered a safer way to pay for products by consumers that are not interested in mobile commerce. Some consumers do not participate in mobile commerce because retailers do not support in-store mobile payments, while others are concerned about their financial information being stolen and exploited by malicious groups.

Mobile payments will continue to grow in the future

Mobile payments are expected to gain more momentum in the coming years. New services are being released regularly and these platforms are becoming more secure. Retailers are also showing more support for the mobile space, where they see a great many opportunities to engage consumers that are eager to shop for and purchase products with their mobile devices.