Mobile payments are transactions that can be carried out using mobile devices such as smartphones. Mobile payments are a revolutionary trend in the digital payments industry and use technology such as NFC for touchless payments.
They enable online purchases and payment of bills. The growth of the global mobile payment market has been stimulated by an ever growing m-commerce market and adoption of smartphones, along with the availability of value-added services at affordable costs.
Mobile payment service providers such as PayPal, Mastercard, AmazonPay, and Google Wallet are increasingly investing in IT to enhance their technological capabilities, ensure operational efficiency, and keep pace with a growing customer base.
Mobile payment service providers are also acquiring IT players and building in-house capabilities. They are also collaborating with IT players, such as IBM and Oracle, to better understand their customers’ needs and offer customized services using analytics and BI tools.
Data security is a key concern among mobile payment service providers. These providers gather personal data to customize advertisements and reach the target audience.
They track cookies to gather information. Indiscriminate use of this data can lead to infringement of customers’ privacy. It also leads to concerns about the security of customers’ financial information. However, mobile payment service providers are trying to enhance security of data, and to some extent have changed consumer perception about security of their personal information.
Technavio expects substantial spending on mobile payment solutions from the banking sector. The banking sector is investing in several initiatives including digital banking and digital transformation, mobile banking and payments, security solutions, and analytical solutions.
Technavio’s analysts forecast the global IT spending market by mobile payment service providers to grow at a CAGR of 12.26% over the period 2014-2019.
