Intel and UnionPay to develop new mobile payments platform
Intel has announced a new collaboration with China UnionPay, the only domestic bank card organization in China. The two companies will work together to create a new, secure platform for mobile payments. China has become a hub for mobile technology and many consumers are beginning to show strong favor for mobile commerce. In order to accommodate the needs of consumers, UnionPay has begun to take the issue of mobile payments more seriously.
Intel to leverage its security technology for new platform
Security is one of the major challenges that continues to serve as a roadblock to the widespread adoption of mobile payments. Mobile devices are beginning to traffic a significant amount of valuable financial information. This information has become a very attractive target for hackers and malicious groups looking to exploit this information. To address the security problem, Intel leveraging its Identity Protection Technology for the new mobile payments platform. UnionPay accounts for 3.5 billion bank cards, which are accepted in at least 141 countries around the world. Providing these consumers with a secure way to engage in mobile commerce may help mobile payments finally attain the momentum needed to begin replacing more conventional forms of commerce.
UnionPay showcases NFC-based mobile commerce service
UnionPay has also begun showing off its Quick Pass service, which in a mobile commerce service that makes use of NFC technology. More than 1.1 million NFC-enabled point-of-sale terminals were installed in December of 2012 in order to serve as an infrastructure for the Quick Pass service. This service is meant to perform alongside the mobile payments platform that Intel and UnionPay are currently developing.
Mobile commerce continues to find success in Aisa
Mobile commerce has found a great deal of traction in the Asian market. With mobile technology penetration high in many sectors of the market, mobile commerce has been able to establish a strong foothold in several countries. There are, of course, security concerns regarding the widespread adoption of mobile commerce, but companies like Intel and UnionPay are working to put these concerns to rest through the establishment of adequate security systems that will protect a consumer’s financial information.
Mobile commerce finds strong growth in mobile applications
Mobile applications are beginning to play a major role in mobile commerce. These applications are starting to serve as adequate replacements for NFC technology, allowing more consumers to participate in mobile commerce than ever before. Canalys, a leading market research firm, has released a new report highlighting the growth of mobile applications and the role they are beginning to play in the adoption and expansion of mobile commerce. The report suggests that mobile commerce could come to replace traditional online shopping methods in the near future.
Report highlights performance of mobile applications
According to the report, downloads of mobile applications grew by 11% in the first quarter of 2013. Approximately 13 billion apps were downloaded during that quarter. Many of these applications offered mobile commerce services or some kind of in-app purchase opportunity. Together, these applications accounted for $2.2 billion in paid downloads and in-app purchases during the first quarter, a 9% increase over the previous quarter. The report suggests that the growing popularity of mobile applications, as well as their increasing value, is largely due to the convenience these applications offer, especially in regards to mobile commerce.
Mobile everything is becoming the favored solution for consumers
More consumers are showing favor for using their mobile devices for daily activities, such as online searches, shopping, and engaging in social networks. Mobile services typically offer consumers a range of opportunities to make in-app purchase, either by unlocking additional features for an application or simply purchasing a product through that application. Canalys estimates that the growing popularity of these applications will push the download mark to over 20 billion by the end of this year and that these applications will account for $3.1 billion in revenue.
Mobile commerce still facing several challenges
Canalys notes that the mobile commerce market is still immature and is difficult to measure accurately. There are several challenges that mobile commerce faces that could put a damper on the markets promising future. The most significant of these challenges is security, which is growing more important as consumers begin to understand how much their financial information could be at risk. The continued growth of mobile commerce will also be largely dependent on the social and economic impact it will have. A negative impact will cause the support for mobile commerce to all but evaporate, while a positive impact will encourage more consumers to get involved.
