Increased mCommerce Means Increased Mobile Payments

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In a recent study conducted by Forrester, it has been predicted that in the next 5 years, mCommerce will quadruple to $31 billion. Last year, sales of physical retail goods and services made on smartphone were around $8 billion in the US. Even though this seems significant, it was only 3% of all online sales and 1% of total retail sales. For the average US retailer, mobile only accounts for 1.5% of total online sales. Although that may not seem to be very powerful now, mobile sales are expected to increase 33% in the next 5 years, then accounting for 9% of all retail sales in the year 2017. So, what does this mean for businesses? Whether or not you are impressed with these number, the fact of the matter is mobile commerce is growing at a hefty rate. And even if your company does not currently offer any type of transactions that may involve mobile payments, its important to know and understand this current trend.

More shopping on smartphones, means more payments being processed on mobile devices. While this is convenient for consumers, this can be troublesome for businesses. Companies that offer both online and/or mobile payment options face an issue with conflicting sides. While they must offer a safe method of payment processing, they must also make sure its easy and concise enough to keep customers moving through the checkout process. Often times if a checkout process is too complex, shoppers will get frustrated and abandon the transaction. Many companies use secure check out options like Paypal to make the shopping experience more convenient but that is not always enough. Having multiple layers of security will strengthen the authentication process acting as a prerequisite to the checkout process. And by utilizing knowledge based authentication, this process can be quick, easy, and effective.

There is no doubting that mCommerce will change the industry in the big way. Just this past year, Paypals mobile payment volume increased 250% and eBays mobile payment volume increased more than 120%. Many of these retail giants are working on shopping apps that will make the shopping process more streamlined for consumers. Remember that the more convenient businesses make the payment process, the more they open the gate for mobile fraud. If your company is looking to venture into the mCommerce realm, be sure to have the conversation about mobile fraud prevention.

[Contributed by EVS Marketing]