Mobile payments rising amid lingering security concerns

May 7, 2015

Mobile payments offer flexibility and speed for online shoppers

The speed and efficiency of mobile payment solutions make the technology a clear winner in global commerce. Consumers appreciate the flexibility of mobile payments, and businesses can use data from the technology to understand and react to shopping behaviors. However, like any data-heavy innovation, security issues are a chief concern. As a result, there will be plenty of value in tech professionals who can help lead a secure transition to greater mobile payment use.

Survey analyzes mobile payment apps
A new survey by 451 Research reveals the latest consumer sentiments regarding mobile payments, and it could provide tech engineers and investors alike with compelling fodder. The research group surveyed more than 4,000 North Americans and noted that 25 percent of respondents said they will likely use a mobile payment app in the next 90 days. About 11 percent of that group said that they will “very likely” use one of these apps, and 14 percent said that they are “somewhat likely” to do so.

The survey affirmed that Apple Pay is the clear market leader among existing mobile payment solutions. In December 2014, about 40 percent of respondents in a similar survey said that they expect to use Apple Pay in the next 90 days. In March, that number rose to 45 percent. PayPal and Google Wallet trailed behind.

“In the wake of Apple’s entrance, Google and PayPal have made significant acquisitions, while players such as Facebook and Samsung are rolling out payment products to remain competitive,” Jordan McKee, a senior mobile payments analyst with 451 Research, told the news outlet. “Moving forward, the pace of activity will only accelerate as vendors look to capitalize on the growing contactless payments infrastructure and secure a foothold in this rapidly evolving sector.”

A split in the mobile direction
A portion of tech engineers recognize the vast market potential of mobile payment solutions such as Apple Pay and want to double down their research and development efforts, according to Mobile Payments Today. However, another contingent of tech professionals believe that security gaps must first be addressed before moving forward.

“There are opposing spheres in this argument [innovation and security],” Michael Bruemmer, vice president of Experian Data Breach Resolution, told the news outlet. “There are the people that want to expand and use technological innovation and take advantage of that in the implementation, but then you have the clashing interest with the security folks.”