Tag: mobile payments

Mobile commerce continues its aggressive expansion in China

| December 4, 2015

China is leading the way in mobile commerce growth

China is becoming more aggressive when it comes to mobile commerce. Until very recently, the country has relied heavily on cash rather than other forms of commerce. Many shoppers throughout the country had preferred paying in cash because they considered it more secure and convenient. As smartphone penetration grows, however, more consumers are beginning to use their mobile devices to shop for and purchase products. Large companies are beginning to take advantage of this, offering consumers new services that allow them to participate in mobile commerce.

WeChat is finding success by encouraging consumers to use its mobile payments service

WeChat is one of the companies looking to bring consumers into the mobile commerce field. WeChat is China’s largest messaging application and social network and the company launched an ambitious campaign last year to highlight its new payments service. During Chinese New Year last year, some 400 million people sent hongbao, traditional gifts containing money sent during the holiday, to their friends and families. This year, however, more than 1 billion digital hongbao were sent through WeChat’s service.

Consumers are finding it easier to shop for and purchase products with their mobile devices

China Mobile Commerce Booming GrowthConsumers are becoming more comfortable with the concept of mobile commerce, using services like Alipay to purchase products that they are interested in. The companies and retailers behind these services are quickly expanding, looking to find every greater degrees of success in the mobile commerce market. Some of these companies, such as Alibaba, are also investing in foreign mobile commerce firms, hoping to establish a foothold in new markets and encourage the further growth of the mobile commerce field.

Young consumers are more likely to participate in mobile commerce

While many consumers still prefer to pay for products with cash, young consumers are embracing mobile commerce quite aggressively. These consumers have been exposed to technology from a young age, making them more comfortable with digital services. Older consumers are also embracing mobile commerce, but at a slower pace. As new services become available, more consumers are expected to become involved in mobile shopping.

Congress is looking into mobile payments security

| December 3, 2015

House Energy & Commerce Committee is looking into concerns regarding mobile payments security

Mobile payments will reach a new high this year in the United States, powering by the growing adoption of new payment services that allow consumers to shop online more conveniently. According to recent reports from CNET and Juniper Research, some two-thirds of adults in the country now own a smartphone, with approximately 36 million people expected to make a mobile transaction this year. This information was presented to a hearing of the House Energy & Commerce Committee, which has been expressing concerns regarding mobile payments fraud.

Security continues to be a significant problem in the mobile space

Security in the mobile payments field has been a point of concern for federal officials for some time. Many consumers have become the victims of fraud in the past, following high-profile data breaches that targeted some of the country’s largest retailers. The hearing found that while most mobile payments solutions are, indeed, quite secure, they do not have the same legal and legislative protections that more conventional payment solutions enjoy.

Committee will not yet be taking legislative action on mobile security

mobile payments and securityThe House Energy & Commerce Committee has noted that the hearing was a preliminary hearing concerning mobile payments security. The committee has not yet announced plans concerning what can be done to improve security. As such, there will be no legislative action taken on issues regarding security for the time being. The committee is seeking more information from stakeholders in the mobile payments space. This information could be used to improve the overall mobile payments space, ensuring that consumer information is well protected in the future.

Ensuring the security of consumer information remains a top priority in the mobile space

The mobile payments space is still relatively new. While many of the organizations participating in this space have extensive experience regarding commerce, they are finding the mobile space to be exposed to significant risks that they are still attempting to adapt to. More regulatory oversight may be needed to ensure consumer protection, but the federal government must collect more data before taking any significant legislative action on the matter.