So, what’s key to seeing big gains in mobile payments? Thinking small.
A recent survey found consumers in China are more likely to use a smartphone to make an online purchase compared to consumers in the U.S. and the U.K.
To understand why consumers in China are adapting to mobile payments solutions at a faster rate than their counterparts in North America and Europe, PYMNTS spoke with Sy Choudhury, senior director of product management for Qualcomm. He explained that China’s consumers are becoming more comfortable using mobile payments technology for less expensive purchases and the need for layered security across various digital payment platforms.
Here’s a preview:
Offering consumers a chance to make inexpensive purchases is a significant step toward helping mobile payments technology move forward. But Choudhury noted another equally important step is improving security for digital transactions.
While fingerprint scanners on smart devices are widely available and can provide peace of mind for consumers that their data is secured, Choudhury said additional security layers are necessary to keep the mobile payments interface secure for consumers and other parties.
“Consumers think because something has a fingerprint scanner on it or a fingerprint sensor and an associated chip device that it’s secure,” said Choudhury. “The reality is the fingerprint scanner is nothing more than a small photocopier.”
Around the mPOS world
As the mobile payments and mPOS space continues to gain steam, both merchants and consumers are taking notice.
This month, retailers in the restaurant, beverage and hospitality industries made moves to embrace mPOS solutions, designed to improve business procedures and gain better insights into customer behaviors and preferences.
More companies are turning to mobile payment solutions as a new way to improve their services and gain better understandings of their customers. Fast food chain YO! Sushi plans to use NCR’s point-of-sale solution for new business insights while Club Med plans to use an omnichannel payment solution to improve customer service.
These moves could go a long way in affecting consumer perceptions. New data suggests customers take a dim view of businesses and merchants that fail to adapt to mobile payments and mPOS systems.
Merchants that are slow to adapt to newer payment systems should take note that their tech offerings could impact how consumers perceive their company and their products. A report from Worldpay found a significant portion of consumers will view a company negatively it only cash payments are accepted.
Check out the Tracker’s News section for a comprehensive look at what’s happening in the mPOS landscape.
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The PYMNTS mPOS Tracker™ is your go-to resource for staying up to date on a month-by-month basis. The Tracker highlights the contribution of different stakeholders, including institutions and technology coming together to make this happen.