Tag: mobile payments

As the industry continues to grow and more people consider the use of the services, concerns increase.

Consumers and mobile payments service providers, alike, are expecting this technology to have a considerable impact on the way that business is conducted and products are purchased, but at the same time, there remain a number of concerns that are keeping people from actually using it, quite yet.

There is still growth in in-store purchase, paid bills, and money transfers through smartphone transactions.

At the same time, many experts who are examining this new technology and what mobile payments are doing in the industry say that there are many questions that remain about its privacy and security. This is holding back its progress to a considerable degree as consumers simply don’t trust it enough to feel safe and confident in its use, so far.

At the same time, mobile payments industry execs are saying that the technology is already good and is improving.

Though consumers are hearing that message, they seem to be willing to wait for those improvements to be implemented before they actually put it into use. At the same time, experts in security are also pointing out that the rapid growth of the use of smartphones for mobile payments is also attracting the attention of those who would use it for fraud.

It is precisely this worry that has consumers stepping back and either using the device less than they otherwise would for mobile payments, or simply choosing not to use it at all until they feel that the risks have dropped.

According to a Dallas based organization called NQ Mobile, a company that offers smartphone security software, it witnessed a growth of over 65,000 new malware threats released around the world, last year. This was a massive increase over the 24,000 new threats that were introduced in 2011. This type of issue can cause unsuspecting device users to head to sites where they reveal their financial data so that it can be stolen and used by unethical third parties.

According to Gavin Kim, the company’s chief commercial officer, “It’s a real problem, and it is growing.” Security will clearly be a key issue to overcome before mobile payments can truly take off.

Mobile commerce making significant progress in the UK

Mobile commerce is showing strong growth in the United Kingdom. More consumers throughout the country are gaining access to smartphones and tablets, and these mobile devices are making it more convenient for a wider variety of people to shop online. Mobile commerce has garnered acclaim for the convenience it offers consumers and several retailers are beginning to grow more accommodating to these consumers as they show a penchant for mobile payments. The growth of mobile commerce is strongly tied to the availability of mobile technology.

Smartphone ownership on the rise

According to a recent study from Gartner, a leading market research firm, sales for smartphones and tablets have been growing rapidly over the past two years. In 2012, the number of smartphones in the world reached 1 billion — one for every seven people in the world. The rapid growth of smartphone ownership has exposed more people to the concept of mobile commerce, a concept they have shown a great deal of interest in.

Proliferation of mobile technology draws more interest into mobile commerce

Ofcom, a government-approved regulator of the communications sector in the United Kingdom, has released information showing that half of the population of the country own a smartphone, with 19% of the population owning a tablet device. Approximately 81% of these smartphone owners prefer to use their smartphones over traditional forms of communication. Approximately 31% of all site traffic in the United Kingdom comes from mobile devices as well, creating a strong need for retailers to become more accommodating to the needs of mobile consumers.

Ease-of-use and simplicity appeal to consumers

The reasons consumers have been showing such strong interest in mobile commerce are straightforward. First, mobile commerce is considered simple, with purchases made for products being accomplished in a matter of seconds. Another factor is that mobile commerce platforms are easy to use, proving accommodating to mobile consumers of varying degrees of comfort with mobile technology. Mobile shopping is also considered, among consumers, to be more enjoyable than shopping at traditional stores, adding further appeal to mobile commerce.