E-commerce and Mobile payments are not new technology trends. While the former has been around people have early 90s, m-commerce or mobile commerce took with the advent of smartphones, PDAs and other internet-enabled handheld devices. Mobile payment, an essential component of m-commerce, has been utilized for more than many years. From the first instance of mobile phones being helpful to dispense soft drink cans from a Coca Cola vending machine through an sms in Finland in 1997, by the turn of the century it rapidly progressed to include payment of parking fees, train and air ticketing, among other things. However, it was the launch of the iPhone along with the subsequent widespread use of smart phone apps indeed fuelled the growth of mobile payments for purchasing good and services.
The advantage of mobile payments is that it presents mobile users an instant source of currency to create purchases using their phones or handheld devices. Sony walkman now, there have been different types of payment mechanisms that have attempted to provide this service. The original version used sms obtaining a payment authorised, which was then included in the customer's mobile bill as the premium charge. However, the labyrinth was dogged with problems like unreliability due to messages getting lost, slow speed, security issues and expense. Since then, more advance payment systems have been added onto practise, including direct mobile billing, WAP based payments and NFC payments.
According to Gartner forecasts in 2011, there would certainly be over 190 million mobile payment users worldwide from the end of 2012 (more than double the number in 2009). A report by market analysis firm Generator Research, estimates that the market for mobile payments will reach $633.4 billion by 2014, indicating in which it will see a rapid growth in the future years.
Essentially mobile payments will succeed for a few reasons. Firstly, it can provide customers a contactless and method of payment that is an extension of online e-commerce ventures. As for merchants, the chance of trying to the big number of mobile users is giving an investments being made in setting down the necessary infrastructure and encryption technology for making sure that the customers' financial information is kept secure during the payment process as well as in the event of connected with the smart phone. A number of companies have introduced online payment mechanisms to facilitate easy payment options can be and services. This includes the recently launched Paypal Here and others such as Square, may help small businesses accept credit cards using iOS and android devices. For customers, PayPal, Google Wallet and Amazon Payments have apps which allow payments for you to become made without carrying a wallet.
While it will probably be a long time before mobile payments get to be the accepted mode of transaction for e-commerce, there just isn't doubt that it will replace the wallet once people are convinced of the safety in addition to financial understanding. More importantly, in developing countries in Asia, the guts East, Africa and South America, mobile payments offers financial capability a larger population it does not necessarily at present have to be able to online the business sector. Whereas in the west, the paperless transaction going without shoes presents is really a push in to the trend of 'going green'.
Article Resource : http://www.techaheadcorp.com/blog/e-commerce/mobile-payments-and-ecommerce-made-for-each-other/