Mobile payments not yet a 'game changer'
With PayPal starting to enable users to pay via their mobile phones and tablets this March for many national retailers, mobile payment is gaining popularity. However, Knowledge@Wharton Today said mobile payments may not yet be a game changer in the industry. Mobile payments should let customers know when the site is secure with code signing digital certificates and other data security measures.
PayPal spokesperson Anuj Nayar told the news source that the company expects to reach $7 billion in 2012. Wharton Today also reported that mobile payments were 538 percent higher on Black Friday 2011 than the same day in 2010, but the payment method may still need more security to spread out more.
“Mobile solutions need to prove that they are as secure as paying with credit cards or cash,” said Shawndra Hill, a Wharton professor of operations and information management, adding that the PayPal spread is "exciting." She said customers will most likely follow the brands they trust first before moving on to other, smaller brands.
Mobile payment will have to use SSL certificates, PCI compliance and more to fight to stay secure. A KPMG survey found that 92 percent of information security officers believe the adoption of mobile payments will increase cybercrime, so businesses offering mobile payments must secure themselves and make sure customers know about it.