If a number of recent reports from MasterCard are any indication, mobile payments are no longer a fringe benefit offered to consumers by some select retailers – they’re now an expected part of the e-commerce experience. As such, any business that fails to host mobile credit card payment processing pages would do well to analyze MasterCard’s data, as well as to consider how much potential business they’re losing as a result.
The company’s latest MasterCard Mobile Payments Study, conducted with PRIME Research, tracked more than 13 million online comments made in regards to mobile payment practices. The company found that businesses who accept debit card and credit card payments made by consumers using smartphones and tablets now have a distinct advantage over businesses that fail to do so.
The study noted that “2013 [was] the year mobile payments transitioned from concept to adoption.” This is because MasterCard found that 80 percent of the individuals discussing mobile credit card payment processing equipment online during 2013 had conducted a mobile transaction personally. This stands in strong contrast to findings from 2012 – when only 32 percent of individuals discussing mobile payments online had conducted such a transaction themselves.
This suggests that consumers now expect online businesses to either conduct transactions via a branded mobile application, or to accept credit payments made by consumers accessing an e-commerce website via a browser on their mobile phone or tablet. Businesses that fail to do so will almost surely witness a drop in their revenue in the coming years. MasterCard also found that 88 percent of respondents – including both merchants and consumers – have positive feelings about the practice of conducting transactions via mobile phones.
MasterCard is also working to advance mobile payments security standards
As a result of these findings, MasterCard is working hard to make mobile-based payments and credit card processing pages more secure. For example, the company recently announced an opt-in program that would allow consumers to activate geolocation services on their phone – which would then protect them from fraud and from being rejected by transaction services when using their mobile phone abroad.
“By leveraging the speed and intelligence of our global network and combining it with geolocation solutions, we are enabling your MasterCard to uniquely work where you and your phone are, anywhere in the world,” said Hany Fam, president of global strategic alliances at MasterCard.Back To Blog