Tag: mobile payments

Businesses in Canada seem interested in the technology but are wary of the costs that will be involved.

The wireless industry in Canada is strengthening the push that it has been making to accelerate the adoption of mobile payments, but merchants are feeling frustrated and pressured as they anticipate higher fees.

The Canadian Federation of Independent Business has said that businesses are preparing to be hit with costs.

The organization, which represents over 109,000 small businesses in the country, said that mobile payments are primed to develop into the “next big fee palooza” for credit card companies, banks, payment processors, and wireless carriers. It has expressed that there has been a “breakdown of trust” between those providers and small businesses.

Small businesses are just waiting to see what higher processing fees and other premiums come with mobile payments.

The CFIB said that the lack of trust from small business toward those companies already exists and is coming from the premium credit card transaction processes that already involve higher processing fees in order to accept them. Now the organization says those companies are waiting to see what mobile payments will have up its sleeves.

The CFIB has said that it is seeking an “express consent” requirement. This would mean that merchants would not have to accept transactions over smartphones and tablets just because they have signed up for the programs to accept contactless credit card transactions.

Canadians have already been using the Visa payWave and MasterCard PayPass contactless terminals in order to make small purchases. Those are the same devices that could be used to accept mobile payments through NFC technology and the CFIB is concerned that the industry will soon be implementing new fees with the use of those devices for accepting smartphone transactions. This would make it difficult for small businesses to remove that option later on if they already have the devices for the contactless card transactions.

On the other hand, banks and wireless providers have stated that they do not have any intention to implement new fees for mobile payments but are concerned that a provision for express consent would slow down merchant adoption of the transaction option.

MasterCard reports that mobile payments are being well received in Asian markets

Mobile payments are becoming more popular in the Asian Pacific market, according to MasterCard. Access to smartphones and tablets is growing throughout these markets, making it possible for more consumers to conduct mobile payments than ever before. Many consumers in these markets consider mobile commerce a more convenient way to purchase products, which has lead to a growing demand for mobile payment services and platforms that accommodate mobile shopping.

Consumers favor mobile commerce for online shopping

According to MasterCard, 40% of online shoppers in Hong Kong, South Korea, and Singapore made purchases using their mobile devices in the past three months. Approximately 54% of Indonesian consumers made mobile payments over the same period, with China and Thailand accounting for 53% and 51% respectively. Mobile payments are becoming increasingly common throughout the Asian Pacific due to the proliferation of mobile technology.

Asian consumers are no stranger to NFC technology

MasterCard notes that NFC technology and its use in mobile commerce is relatively common throughout the region. According to the company, 70% of consumers throughout the Asian Pacific are aware of NFC technology and the role it plays in mobile payments. These consumers noted that they would be willing to adopt NFC-enabled mobile devices to participate in mobile commerce within the next 12 months. Digital wallets, which typically do not use NFC technology, are also quite popular with consumers, though the majority of consumers in the Asian Pacific noted that they were more interested in SMS-based mobile payments.

Mobile commerce continues to grow globally

Mobile payments are expected to continue growing in popularity throughout the Asian Pacific. Other markets around the world are experiencing similar results in their mobile commerce sectors as smartphones and tablets become more accessible for consumers. MasterCard is currently involved in mobile commerce initiatives in several countries and through these initiatives is attempting to establish a firm grasp on the mobile payments sector.