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Consumers are willing to pay for goods and services online using their mobile device, a process which is familiar because of experiences paying online.
Transactions processed via mobile payments for traditional retailers are expected to grow 600% by the end of 2017 and alternative payment methods like mobile wallets will account for a 20% share in Europe by 2020. Today, more than a quarter of the global population use one or more mobile commerce services and the mobile phone is playing a key part in reinventing everyday consumer experiences like shopping.
This demonstrates the growing global shift from O2O (online-to-offline) commerce, which integrates the use of mobile phone technology, M-commerce and E-commerce with traditional ‘bricks and mortar’ business models. This shift highlights a growing need for innovative mobile payment technology at the point of sale, and enhanced mobile fraud prevention techniques, according to CEO Markus Milsted from Omlis, a leading global mobile payment solutions provider.
Implementing mobile payment technologies
Publicity about new mPOS (mobile point-of-sale) systems like ApplePay have generated interest in new payment methods, with consumers eager to use mobile payments in-store: almost half of mobile users in the UK would like to use mobile payments, and young adults in the US are four times more likely to carry a mobile phone than cash, according to a report from Visa. Not only is the demand there, but retailers are also beginning to see the advantages of accepting mobile. Mobile payment capabilities offer retailers a new chance at an omni-channel payment experience, where technology becomes more consistent, payment options are streamlined and all infrastructures allow a simple user experience for payments being taken at the till.
For businesses deploying mobile payment solutions, real-time analysis can ensure systems are consistently up and running to provide better customer service. The opportunity to use mobile payments at point of sale can offer a faster and more simple payment option, allowing consumers to process a payment instantly with a direct-to-bank mobile payment. Certain mPOS systems can also make transactions more affordable for merchants with reduced transaction fees as compared to cards. This has been evident in the heavy uptake of mPOS systems for small businesses in the US. Once a standardized protocol for payment acceptance is available, mobile payments can deliver the omni-channel payment experience that merchants have been seeking.
Challenges in bringing mobile payments in-store
Many mPOS payment systems, such as ApplePay, require merchants to incur additional costs on new POS hardware to enable mobile payments. This hefty price alongside slow uptake in adoption of ApplePay and other mobile wallets has meant that mPOS is slow to take off. Incessant data breaches also prove a hindrance to paying with mobile at point of sale, a new technology that consumers are wary of, which also includes traditional card numbers that have proven vulnerable to attack. Mobile payment security at point of sale will continue to gain importance for retailers, who could see benefits from using the notably secure NFC technology becoming more widely available.
2015 will see the gap widen between those successful companies that harness mobile payment technologies as a secure, convenient service to consumers, and those who fall behind technologically or fail to grasp the importance of security on mobile devices and within payment transactions.
Omlis is a global mobile payment solutions provider bringing market proven, highly powerful, differentiated and most effective solutions to all mobile commerce security. Omlis brings to market the first mobile payment solution designed, developed, and tested using high-integrity development processes that are typically used for security-critical applications like air traffic control. Large-scale breach of consumer information is no longer a possibility with Omlis mobile payment encryption, which accelerates payment authorization in real-time while providing enhanced protection of personal details. Learn more at www.omlis.com.