Mobile Payments Today: April's best reads
Our readers love to read about studies, particularly those about mobile payments (duh), but also mobile banking.
So, it is no surprise that an article about Citi's latest mobile banking study surged to the top five in April despite appearing on the site late in the month.
Citi's study has some juicy tidbits for bankers to ponder, particularly one about how mobile banking apps rank in importance with consumers. Spoiler alert: Those apps are right behind social media and weather.
Another amusing data point from the study: Some millennials use mobile banking apps on a date, which makes sense when you consider dating can burn a hole in your pocket.
Anyway, rounding out the top five stories from April are pieces about mobile payments and unattended retail; the risks mobile payments present to financial services; mobile scan-and-go shopping; and a favorite MPT piece from last year about QR codes and e-commerce.
5. "Mobile payments can redefine the customer experience for unattended retail": One of the best-attended educational sessions at the recent National Automatic Merchandising Association show in Las Vegas focused on how payment technology innovations — namely mobile payments — are impacting customer expectations.
Improving the customer experience has become a key focus of all astute retailers. For providers of convenience services, much of the focus rests on integrating frictionless point-of-sale payment. Hence, one of the best-attended educational sessions at the recent National Automatic Merchandising Association show at the Las Vegas Convention Center focused on how payment technology innovations — namely mobile payments — are impacting customer expectations.
Michael Kasavana, Ph.D., endowed professor emeritus of the National Automatic Merchandising Association, moderated the session.
The speakers agreed mobile technology is redefining customer expectations for their shopping experiences.
4. "Citi study shows mobile banking is vital to consumers": Of the 2,000 U.S. adults surveyed, mobile banking app use ranked third (31 percent) behind only social media (55 percent) and weather apps (33 percent), respectively.
In today's digital world, the majority of bank executives from both small and large financial institutions realize how vital it is to have an engaging and useful mobile presence for their customers.
And for those executives who have yet to grasp just how necessary that presence is for today's digital consumer, consider one interesting nugget of information from Citi's second annual mobile banking study:
Of the 2,000 U.S. adults surveyed, mobile banking app use ranked third (31 percent) behind only social media (55 percent) and weather apps (33 percent), respectively.
That particular data point supports a couple of high-level views bankers have uttered at industry conferences the last two years as brands put more emphasis on the digital customer experience:
A mobile banking app can be a central point in a consumer's digital life.
Banks now more than ever are competing against non-financial institutions such as social media companies, retailers and others (think Uber) when it comes to providing an ideal mobile experience.
3. "The risks mobile payments present to financial services": It's no secret that the financial services industry is a top target for cybercriminals looking to steal valuable data. This growing risk comes at a time when financial services firms are turning their focus to innovating new technologies and features to meet evolving consumer demands.
It's no secret that the financial services industry is a top target for cybercriminals looking to steal valuable data. In fact, data shows that financial firms face daily attacks that attempt to bypass defenses protecting a growing number of attack vectors. Of this regular cadence of attacks, a staggering 36 percent result in data loss.
This growing risk comes at a time when financial services firms are turning their focus to innovating new technologies and features to meet evolving consumer demands. Providing regular updates and new online products is a necessary key differentiator in the competitive financial market. However, rolling out new features at such a fast pace also increases the attack surface and potential vulnerabilities.
2. "Mobile scan-and-go shopping: The future of retail is now": Julian Wallis, retail director at Rambus, believes retailers that invest in the right in-store digital initiatives will be able to separate themselves from the competition going forward.
As brick-and-mortar retailers look to enhance the in-store experience to compete with the e-commerce giants, they must contend with the unprecedented challenges posed by decreasing revenues and escalating costs.
But for those who invest smartly in the right digital initiatives, there are huge opportunities. For this reason, transformative technologies such as mobile scan-and-go solutions are gaining momentum across the world.
Indeed, merchants can use mobile scan-and-go to increase average revenue per user (ARPU), boost loyalty, deliver an enhanced customer experience, and create operational efficiencies.
1. "How QR codes are changing e-commerce": The QR code – which has had a wild ride – is going to both speed up the e-commerce payment experience and make it more secure.
E-commerce has long relied on the "card-not-present" payment method. At this point, online consumers can do the routine with their eyes closed: Enter their credit card number and billing address into the website form, flip their card around to key in the security code, and click "purchase."
The QR code — which has had a wild ride — is going to both speed up the e-commerce payment experience and make it more secure.
The security risks associated with the CNP payment method are well known.
Merchants' systems — which store all the information criminals need to commit fraud with consumers' credit or debit cards — have been vulnerable attack points, hence the data breaches we read about daily. They also don't have a way to confirm whether the information a consumer enters is their own or compromised data.
Online businesses that use this payment method expose themselves to hacking, but even if they’re not hacked, they pay a price since there is a higher fee for processing these higher-risk transactions in which the card is not physically present.
So both consumers and merchants are paying a higher price for the convenience of online shopping. But the emergence of QR Codes for payments will show it doesn't have to be that way.
Topics: ATMs, Bank Customer Experience Summit, Bill Payment, Bitcoin, Card Brands, Carriers / Operators, CONNECT: The Mobile CX Summit, Contactless / NFC, Direct Carrier Billing, EMV, Handsets / Devices, HCE, ICX Summit, In-App Payments, Loyalty Programs, Mobile Banking, Mobile/Digital Wallet, Mobile Marketing, Money Transfer / P2P, POS, Regulatory Issues, Restaurants, Retail, Security, Trends / Statistics
Will Hernandez Will Hernandez has 14 years of experience ranging from newspapers to wire services and trade publications. Before becoming Editor of MobilePaymentsToday.com, he spent two years as the content manager for PaymentsJournal.com, a leading payments industry news aggregator and information hub published by Mercator Advisory Group. Will spent four years covering the payments industry as an associate editor for multiple publications in SourceMedia's Payments Group based in Chicago.