Security of mobile payments questioned by FTC
Mobile payments are becoming all the rage around the world, but there are major security concerns that have been gaining more attention in some countries. Mobile commerce is on the rise in the U.S., and while that means more consumers are becoming acclimated to mobile payments, it also means that malicious parties are beginning to target these consumers. The U.S. Federal Trade Commission has released a new report highlighting the potential threats that exist in the competitive world of mobile payments.
Report highlights threats of the mobile world
The report, entitled “Paper, Plastic, or Mobile?,” sheds light on the issue of mobile payments fraud in the U.S. The Federal Trade Commission has drawn upon the vast amount of information it has received from companies and organizations heavily invested in the mobile commerce industry for the report. The report also contains the concerns that consumers have raised over the issue of mobile security and commerce, with fraud and identity theft being among the most worrisome of issues.
Security lax when it comes to mobile commerce
The report notes that the concept of mobile payments has been a very attractive prospect for years. Despite the anticipation surrounding mobile payments, however, relatively little has been done to ensure the security of mobile commerce. The Federal Trade Commission suggests that there are various ways in which a consumer’s financial information can be stolen and exploited and that some of the security issues that consumers face are inherent in many of the most popular mobile commerce platforms.
Credit cards considered most secure option for consumers
While the report suggests that mobile payments are very effective for purposes such as bill payments and shopping, the Federal Trade Commission remains unconvinced that mobile devices like smartphones and tablets provide enough security to make mobile payments feasible. The agency claims that credit cards offer the strongest security for consumers, especially when it comes to the matter of fraud.
UK mobile payments spark innovation and the founding of new companies
The United Kingdom is emerging as a hub for innovation in the world of mobile payments. The country boasts of high penetration when it comes to mobile technology, with a massive number of consumers having access to smartphones and tablets. Several of the country’s largest retailers, including Tesco, have begun embracing mobile payments very aggressively, making mobile commerce much more popular among British consumers. The growing popularity of mobile payments has lead to the emergence of new companies that aim to establish a formidable force in the evolving state of commerce. Droplet is one such company.
Droplet finds success in UK mobile commerce
Droplet is a mobile payments firm, which released a mobile application of the same name earlier this year. The Droplet application allows users to purchase goods and services using their mobile device. Users can transfer funds to others as well, free of charge. Droplet recently closed a successful beta testing phase for the application, wherein it saw significant success in consumer adoption. Backed by this success, the application is heading to London, where it aims to spark a commerce revolution.
Droplet sees major growth through beta testing phase
Commerce is becoming increasingly mobile-centric. Many consumers in the United Kingdom are becoming more comfortable with the concept of mobile payments, making it more likely for these consumers to make purchases directly from their smartphones and tablets. In Birmingham, where Droplet’s beta phase was focused, more than 60 merchants signed up for the firm’s services and more than 2,500 consumers downloaded the Droplet application in order to make mobile payments. In London, Droplet expects to see those numbers rise exponentially.
Mobile payments to become more attractive in London
Droplet will become more than a mobile payments platform in the coming weeks. Droplet Tools is currently in development and will serve as a platform that will enable applications developers to create customized features for merchants. Through these features, merchants will be able to leverage loyalty programs or provide consumers with special offers. The fact that Droplet is fee-free is also expected to attract a great deal of attention from London’s merchants.
