The service is expected to launch near the beginning of 2014 through eight participating financial institutions.
The Payments Council has just released their latest news for smartphone users in the United Kingdom, which revealed that in the early part of 2014, they will have mobile payments services available that will allow them to send money or complete transactions via text message.
It is hoped that this will be able to rev up the smartphone transaction sector within that country.
According to the BBC, the entire process will begin as the eight banks that are involved in this mobile payments venture ask their clients whether or not they would be willing to opt into the program in 2014.
The goal is to use text messaging to make mobile payments more accessible and convenient to users.
The participating banks feel that using text message mobile payments will provide a simpler process than having to transfer money in the traditional way, as an account number will not need to be provided. Instead, a phone number will be used, which is much easier for the user to remember and is considered to be more manageable.
Though this is will be the first time that a service of this nature is launched in the United Kingdom, the technology is not brand new. M-Pesa is already offering text based mobile payments in a number of different African countries. This is because it is available in the majority of cell phone devices and it allows funds to be transferred quite quickly.
The Faster Payments service will be managing the mobile payments of this nature in the U.K. In 2012, that company processed 800 million banking transactions, which suggests that they will be capable of handling the necessary volume.
It is expected that the users who will find the text mobile payments to be the most appealing will be those who have feature phones as opposed to smartphones, and who are therefore not able to load wallet and mcommerce apps. Also predicted to enjoy this technology will be individuals who want to use their devices but without having to manage their account numbers in order to do so.
Retail industry begins devoting more resources to mobile commerce
The retail industry is beginning to respond to the gargantuan success of the mobile commerce sector, especially in the wake of the results of the 2012 holiday shopping season. During the 2012 holidays, more consumers made use of their mobile devices to shop for and purchase products than they ever had before, giving the retail industry a glimpse of the gains they could see by throwing more support behind mobile commerce. Shop.org and Forrester Research have released a new survey that highlights the view retailers have regarding mobile commerce in 2013.
State of Retailing survey highlights the work of retailers
The survey, called “State of Retailing,” shows that more retailers are beginning to shift their resources to better serve mobile consumers. More than 51% of the retailers surveyed noted that one of their top priorities was making sure that their websites and services were optimized to be used on mobile platforms, such as smart phones and tablets. Another 43% identified tablets and other mobile devices as one of their most important priorities, hoping to increase the traffic and commerce they see through these platforms throughout 2013.
Online traffic spikes in 2012
Retailers are reporting that they are seeing more traffic from online sources. This traffic grew in 2012 and is expected to continue gaining momentum well into 2013. Approximately 27% of the retailers surveyed noted that they have major overhauls of their websites planned in the coming year. These retailers are focusing on making their websites more accommodating for mobile consumers.
Retailers must be wary of pitfalls surrounding mobile commerce
While there are certainly major opportunities for retailers in the realm of mobile commerce, it is important for these companies to take time to identify the potential obstacles they may face in catering to mobile consumers. Embracing mobile commerce is a multi-faceted endeavor, and many retailers will likely begin feeling pressure to facilitate actual payments from mobile devices in their physical stores. Moreover, the more companies focus on mobile commerce, especially in the digital space, the less traffic their physical stores may see in the future.
