Security becoming a more serious concern as mobile payments grow in popularity
Mobile payments are becoming increasingly popular, a trend that is attracting more attention to the issue of mobile security. Because mobile devices like smartphones and tablets are being used to traffic financial information, they are becoming more alluring targets for malicious groups that would like to exploit this valuable information. Security concerns have put a damper on the growth of mobile payments, but there may be ways to secure financial information without having to rely on the inherent security software of a mobile device or mobile commerce application. Biometrics may be the answer.
PayTango aims to change the way people pay
PayTango, a relatively new technology startup backed by Y Combinator and several investors based in Silicon Valley, California, has come up with a new way to make mobile payments more secure. The company has begun teaming with local universities in order to offer a new, convenient way for students to pay for goods and services without having to rely on credits cards or other forms of physical currency. The technology developed by PayTango quite literally puts purchasing power at the fingertips of consumers.
Biometric system puts a new twist on commerce
PayTango has developed a biometric system that can scan a person’s fingerprints in order to activate a payment. The system can associate a person’s various credit cards, loyalty cards, and even ID with their fingerprints through a simple scanning process. Once these payments methods have been associated with a person’s fingerprints, they can simply tap a biometric scanner in order to purchase products or services.
PayTango system receives international attention
The system is still in an early stage of development and is not yet ready for business applications. PayTango notes that it has received international interest for its system, especially from companies and organizations that have a strong interest in mobile payments. It will take some time before the biometric system can be scaled up for business applications, but PayTango has high hopes for its use in the field of mobile commerce.
Mobile commerce is picking up momentum
Mobile commerce is growing rapidly and that growth does not appear to be slowing down any time soon. The current state of mobile commerce suggests a bright future, largely due to the proliferation of mobile technology and the perceived convenience of mobile payments. Indeed, mobile devices are beginning to become more popular than PCs. According to a study conducted by the International Telecommunications Union, as of August 2012, more than 7 billion mobile devices were operating all over the world, exceeding the number of active PCs by three times.
Mobile sales to reach new heights in near future
A recent study from Abi Research suggests that mobile commerce will reach $119 billion by 2015. This is roughly 8% of the current e-commerce market. E-commerce is still considered to be a powerful force, especially in the retail industry, but mobile commerce is benefiting from increased exposure and a growing number of retailers interested in engaging mobile consumers in a new form of commerce. Another study by Forrester Research suggests that mobile commerce in the U.S., in particular, will reach $31 billion by 2016.
US mobile commerce experiences aggressive growth
In the U.S., mobile commerce is experiencing a magnanimous rise to fame. More consumers are beginning to become comfortable with the concept of mobile payments, making them more likely to purchase goods and services using their smartphones or tablets. Mobile traffic to websites is on the rise, powered by growing interests in the realm of mobile marketing. Location-based services are also playing a role in encouraging consumers to participate in mobile commerce as they are able to find stores and attractions more easily, especially while traveling.
Security may derail bright future
While the current state of mobile commerce does paint a bright future, the future is, of course, unknowable. There are many challenges that face mobile commerce that could derail the burgeoning industry’s future. The most significant of these challenges, currently, is security. Without adequate security, a consumer’s financial information is at risk of theft and exploitation. The security dangers inherent in mobile commerce have kept many consumers from conducting mobile payments.
