Tag: mobile payments sector

Mobile payments startups may be no match for PayPal

PayPal continues to dominate the mobile payments field

The mobile commerce sector is rife with competition. The growing popularity of mobile payments of consumers has encouraged numerous startups to emerge, each looking to beat one another in the hopes of gaining consumer support. The problem, however, is that there is already a well established commerce platform that has muscled its way into the mobile sector: PayPal. The company has been involved in mobile payments for years before mobile commerce began gaining significant attention around the world and its presence in the sector may be too much for smaller companies to handle.

Competition may be too much for startups to handle

Consulting firm Crone Consulting LLC suggests that the mobile commerce market has become over saturated. There are numerous startups working against one another to appeal to consumers. Many of these organizations are offering mobile payments processing systems that are fee-free. While this may be attractive for merchants that are reaching out to mobile consumers, the fact that these startups are not making any money off these transactions has created some uncertainty among consumers.

Mobile Payments - PayPalVenture funding may not be an adequate option for mobile commerce startups

Many mobile payments startups are backed by venture funding. When this funding runs out, however, these companies may be unable to generate a profit or cover the costs associated with the services they offer. Some may be forced to begin charging a fee to process mobile transactions, which may lead to an exodus of clients they acquired through the promise of fee-free services. Others may simply close shop because they cannot afford to continue operation. Those that are determined to persist in the market will have to face PayPal, which boasts of $20 billion in mobile payments on a yearly basis.

Companies may find some success by focusing on very small niches in the market

According to a recent study from market research firm Gartner, the mobile commerce market is expected to reach $235.4 billion in global transaction value by the end of this year. The market is expected to see promising growth throughout the near future, a fact that has generated a great deal of encouragement for those interested in entering the mobile commerce field. Startups may find it difficult to find a foothold with giants like PayPal crowding the field, however, which has led some companies to focus on very specific niches in the mobile payments sector in order to find some degree of success and solvency.

Mobile payments face serious risks

Riskskill draws attention to risks in mobile payments field

Mobile payments have become quite popular with consumers, which also mean that they have become a bigger focus for businesses looking to engage with tech-savvy people. Many consumers praise mobile payments because of their simplistic and convenient nature. The mobile commerce field is, however, rife with risks that often go completely unnoticed by consumers. Riskskill, a leading corporate risk consultancy firm, has been working to raise awareness of the risks that exist in the mobile commerce space for some time and suggests that companies face a wide range of dangers when adopting mobile payments.

Study highlights problems with rapid pace of technological progress

Riskskill has released a new study concerning the risks that exist in the mobile payments sector. The study highlights several areas wherein these risks are most pronounced. One of these sectors concerns the rate at which technology progresses and the rate at which mobile commerce itself is growing. The firm suggests that mobile payments will reach $1 trillion in global transactions by 2015 and this growth could outpace the availability of reliable infrastructure. Exhausting existing infrastructure could inhibit future growth and make mobile payments significantly less efficient than they currently are.

Mobile payments may outpace standards and regulations

Mobile Payments Security ConcernsAnother field of concern has to do with the current standards that are in place to regulate mobile payments. These standards tend to vary from country to country and are meant to ensure that consumers are protected while participating in mobile commerce. The problem, however, is that these standards may soon become outdated due to the rapid growth of mobile commerce itself. The rapid evolution of technology is putting further strain on these standards, but many countries have yet to adapt to the changing needs of the mobile commerce space. Inadequate standards could leave consumers open to exploitation.

Hackers target mobile commerce

Consumers are also faced with the risks associated with hacking. Mobile payments have become a very attractive subject to malicious groups that wish to exploit financial information. These risks do not disappear simply because they attract relatively little attention and Riskskill believes that hacking could be a significant problem that has yet to be fully addressed.