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Three fronts where mobile payments can move forward

January 17, 2017

When it comes to the ways in which mobile payments may be able to gain a wider and more receptive audience in the near future, experts usually point to a handful of improvements platform providers and developers can make.

When it comes to the ways in which mobile payments may be able to gain a wider and more receptive audience in the near future, experts usually point to a handful of improvements platform providers and developers can make. Some are already starting to catch on with those trends and getting some of the expected benefit as a result.

One such effort – touted over and again by industry experts who see retailer acceptance as a major driver of future consumer adoption – is by tying mobile payment accounts to rewards programs run by individual companies, according to ATM Marketplace. Samsung recently rolled out a rewards program to go with its burgeoning Samsung Pay mobile platform, and while concrete numbers haven’t been made available, there is evidence it has increased engagement as users make transactions to earn Samsung products.

Some data suggests that the number of daily transactions Samsung handles on its platform has doubled in just a few months, the report said.

“Innovations like Samsung Rewards are giving consumers a real incentive to embrace Samsung Pay,” he said. “We are seeing that people are more likely than ever before to try mobile payments.”

More is being done to spread mobile payment use in a number of ways.More is being done to spread mobile payment use in a number of ways.

What about wearables?
Meanwhile, more tech developers are likewise hoping that by getting more wearables with mobile payment capabilities out to the public, it could further normalize use of these platforms on a daily basis, according to a report from Mobile Payments Today. Today only about 27 percent of consumers even have a smartphone capable of handling such a transaction have used them to make a purchase, and that number is expected to keep rising. However, experts also note that people haven’t really been given a reason to use wearables in a similar fashion at this point. That may be especially difficult to wrangle as sales of such devices – like the Apple Watch – remain a little disappointing for tech giants.

Increased security
Perhaps the biggest hurdle for many consumers, though, is the widespread misconception that mobile payments are somehow less secure than traditional credit card purchases. As a consequence, more is being done within the payments industry to both spread awareness of how mobile is actually preferable in terms of reducing the likelihood of fraud, according to the PCI Security Standards Council. Specifically, the group is now extending its credit card payment standards to mobile platforms specifically to make sure all involved in the payments ecosystem is on the same page.

“As we adopt new payment technologies, criminals are working to exploit weaknesses in the processes supporting these technologies,” said PCI SSC chief technology officer Troy Leach. “It is critical that we continue to provide the same or better security for mobile wallets and contactless payments that consumers and financial stakeholders have come to expect from traditional card payments. This is the focus of our revision to the card production and provisioning standard.”

The more merchants can do to adopt point-of-sale devices in the near future that can handle both mobile and EMV transactions, the more likely they will be to meet people’s evolving expectations for security standards and convenience.

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