Mobile payment processing has emerged as the next frontier in e-commerce, but many customers still feel apprehensive about embracing it.
Two recent studies illustrate both the degree to which mobile technology is transforming the mobile payment processing industry, and the fears surrounding consumer perceptions.
The first study from eMarketer projects mobile commerce sales will hit $6.7 billion by the end of 2011 – a 91.4 percent increase compared to 2010. It also projects mobile sales to grow by an additional 73.1 percent the following year.
The second study, conducted by the National Cyber Security Alliance (NCSA) and McAfee, found that 75 percent of respondents access the internet with their mobile devices. Half of respondents used their mobile phones to research a purchase, 27 percent have proactively shopped on a mobile device and 18 percent have actually made purchases on their smartphone.
But the same study also indicated that new mobile malware increased by 46 percent in 2011, compared to 2009. And it demonstrated some pretty compelling reasons for why customers may NOT be making a purchase on your website.
Among those reasons:
- 56% abandoned purchases because they weren’t convinced your website was secure.
- 53% freaked out after your website asked too many questions
- 42% cited general security concerns as the reason they stopped.
Letting your customers know their credit card information is completely safe is the key to encouraging them to use it. And, of course, using a mobile payment processing app that helps to provide that reassurance is key. When communicating your new mobile payment options, take the opportunity to include information about the security of the app you’re using.
Mobile payment processing will continue to grow into the coming years, and alleviating your customers’ fears should be your top priority when it comes to fully embracing it.