Tag: mobile commerce

Mobile commerce may thrive if banks get more involved

| July 22, 2013

Report shows consumers want mobile commerce platforms from their banks

A new report from the Future Foundation, a global research firm, suggests that consumers in the United Kingdom may be more willing to participate in mobile commerce if payment platforms came directly from their banks rather than from third party groups. Mobile commerce has been gaining prominence around the world, but many consumers remain wary of paying for products using their smartphones and tablets. These consumers often cite security concerns and worry that their financial information may be put at risk through their participation in mobile commerce.

Banks are growing more interested in mobile payments

Many banks and financial services firms have shown a great deal of interest in mobile commerce. These organizations typically embrace mobile payments and allow for consumers to use their accounts to make such transactions. Few of these banks offer their own mobile payment platforms, however, opting instead to support those being offered by third parties, such as Google and Isis. In the United Kingdom, this may be driving consumers away from mobile commerce.

Mobile Commerce and BanksConsumers may have more confidence in mobile commerce if banks get involved

The report shows that 57% of consumers would have more trust in mobile commerce applications coming from their own banks. The report also shows that approximately half of the country uses a mobile device to purchase products online. Consumers claim that they would spend more money in mobile commerce if they could trust their applications. Therefore, if banks begin supporting their own mobile commerce platforms, transactions made through mobile devices may see aggressive growth.

Strict regulations foster secure environment for mobile payments

One of the reasons that consumers would trust mobile commerce applications from their banks has to do with the regulations that exist to manage these banks. Financial services firms are saddled with a great deal of responsibility and must adhere to strict standards that are generally imposed by government organizations. These regulations put a major emphasis on security, which could foster confidence among consumers when it comes to mobile commerce.

Mobile payments set to reach $1 billion in the US

| July 19, 2013

Mobile payments to see strong growth this year

Mobile payments are poised to see explosive growth in the U.S. this year. As more consumers show favor for shopping online using their mobile devices, their proclivity for mobile payments is beginning to show a dramatic increase. A new report from eMarketer, a leading market research firm, suggests that U.S. mobile payments will reach new heights this year and will continue to grow in the near future. Much of this growth is being driven by the focus businesses have been putting on mobile commerce.

Report highlights the future possibilities of the mobile commerce space

According to the report, U.S. mobile payments will surpass the $1 billion mark by the end of 2013. Mobile transactions will be coming from scanning codes with smartphones and tablets, using NFC-enabled devices, and by accessing e-commerce platforms through a device’s web browser. The report predicts that mobile payments will continue to show aggressive growth and account for more than $58 billion by the end of 2017.

Mobile Payments growthMobile payments face many challenges

While the report suggests a promising future for mobile commerce, it also notes that challenges that this sector has been faced with recently. Over the past year, the mobile commerce space has become inundated with a variety of platforms that offer convenient payment support to consumers. While there is no shortage of variety, none of these platforms have yet established a substantial lead over the others. The problem is that most of these platforms compete on a technological level, meaning that they are not universally accommodating to those interested in making mobile payments. The report suggests that the competition that these platforms create will keep growth in check until 2016.

NFC considered a wild card for many

The report also suggests that continued focus on NFC technology could be problematic for the future of mobile commerce. NFC has been subjected to harsh criticisms concerning security and efficiency. While most mobile commerce platforms are based on the technology, eMarketer notes that the technology itself is considered a “wild card” by those investing in mobile payments.