The latest research indicates that it makes up only 0.01 percent of the total in the United States.
According to a report that was just issued by Javelin Strategy & Research, mobile payments using contactless technology at the point of sale (POS) made up only a tiny sliver of the total volume in the United States in 2012.
The report indicated that this technology was used for only 0.01 percent of the total POS volume in the U.S.
The research data showed that the total amount spent over contactless mobile payments was approximately $500 million. At the same time, though, the report did not see a grim future for this form of smartphone based transaction. In fact, based on their predictions, things are looking bright in that area.
The forecast made by the report is that there will be an increase in mobile payments at a CAGR of 61 percent.
According to Javelin’s predictions, the compound annual growth rate that will be seen for mobile payments using contactless technology will be 61 percent this year. This will mean that the method will experience growth at a rate that is higher than any other method. In fact, it is predicting that this trend will continue over the next five years, and that in 2018, the total volume will have reached 5.4 billion. This will mean that it will make up 0.13 percent of the total POS volume in the United States in that year.
A Javelin industry analyst, Aleia Van Dyke explained this trend by saying that the point of sale market in retail is experiencing a very rapid evolution, as the popularity of smartphones and mobile payments takes off. There is a much greater expectation from consumers today, as they feel that the retail businesses where they shop should be providing an enhanced shopping experience while inside the walls of the store through the use of smartphones.
The rapid implementation of mobile payments and other transaction options such as prepaid and gift cards have helped with the adoption of other technology based options, among consumers, according to Van Dyke. As a whole, retail POS purchases last year brought in $3.98 trillion. The prediction for five years down the road is $4.2 trillion.
Axiom sets sights on security for mobile payments and beyond
Axiom Telecom, one of the largest telecommunications companies in the Middle East, has announced an exclusive partnership with NQ Mobile, a leading developer of security software. Through this partnership, Axiom aims to provide more protection to its Android customers, especially when it comes to the issue of mobile payments. Mobile payments are growing in popularity in the Middle East, especially among affluent consumers in the United Arab Emirates. Security, however, is a major concern for many as their financial information could be at risk of theft and exploitation.
NQ Mobile Security available to Axiom Android customers
Through this new partnership, Axiom Android customers will be able to take advantage of NQ Mobile Security, one of NQ Mobile’s most popular security offerings. This security suite will come pre-loaded on all new Android devices sold by Axiom. Consumers that already have Android devices through Axiom will be able to access the security suite in order to protect their mobile devices from the various threats that exist in the digital world. The suite protects a mobile device against malware, spyware, phishing attempts, viruses, hacking, and other threats that could access a consumer’s information.
Mobile payments continue to face significant threats
As mobile payments become more common, the threats that exist in the digital world are becoming more pronounced. These threats are gaining more attention because of the dangers they pose to a consumer’s financial information. NQ Mobile notes that the number of threats specifically targeting the mobile commerce sector is on the rise and that there is no sign of these threats diminishing any time soon. In order to protect a user’s financial information, the NQ Mobile Security suite also features an anti-theft and anti-loss service. This service will locate, lock, and terminate the digital information that is stored on a mobile device if it is reported as lost or stolen. The device will also sound an alarm in order to signal that it has been stolen.
Axiom seeks to spread awareness of mobile security
Axiom is working to bring more security to the mobile world. Awareness concerning mobile security, especially in regards to mobile payments, is somewhat lacking in the mobile space. Axiom is hoping to address this issue through awareness and by making robust security solutions more available to consumers.
