Is there a mobile billing tsunami coming?

Experts reckon that mobile billing and transactions will soon be a way of

to bring about convenience. Lately the focus has shifted to mobile shopping as companies have seen a rising trend amongst their customers – the transgression from desktop to cell phone.

But at the same time, merchants are wondering why the conversion rates are not as robust as they would like. As enthusiastic as most consumers seem to be at the prospect of leading a wallet-less life, some industry leaders are posing the question if the world is truly ready for mobile billing and payments.

Braintree’s GM of Mobile Aunkur Arya said that the emphasis should be more on the enablement of commerce and less on the payments and transactions themselves.

“Mobile is the primary computing device, but there is still a ton of friction when people have to take out their credit card and put that information in,” he said. “The drop-off rates are as high as 75 percent. The merchants who are winning are those who can create magic, like Uber, HotelTonight, and Postmates.”

One the general issues people have is that of security. A mobile user can be the victim of theft or lose/ misplace their phone (containing all their payment history or transaction info) at any given time. Or if someone gets hold of the user’s info another way, all they will need is the user’s phone and they can shop away. On the other hand, a wallet can just as easily be stolen or a credit card holder can become the victim of fraud.

As the CEO of PocketChange, Ari Mir, remarked: “understanding that mobile payment is synonymous with convenience is what it will take to win.”

People are spending so much time on their phones that converting from cash/ credit cards to mobile billing and payments are a natural step. Many consumers are also no strangers to purchasing goods with their credit card online which should make mobile transactions less of an “alien” experience.



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