Retailers slow to adopt smartphone payment technology

Retailers slow to adopt smartphone payment technology

Payment companies around the world have begun designing technology that allows consumers to use their smartphone as a payment device, but the majority of retailers haven't yet adopted tools needed to accept such methods.

According to a recent CNN report, near field communication technologies like Google Wallet allow shoppers to tap their smartphone to a retailer's payment reader, which then extracts payment information from the mobile device.

The technology is currently limited to select credit card companies, and most stores haven't invested in the payment reading device because of equipment expenses and issues merging it with the their own systems, the report said.

"Merchants adopt new payment models because they increase sales," said Osama Bedier, Google's vice president of payments, CNN reported. "If I gave you a payment option that was totally free, merchants wouldn't adopt it unless it increased sales."

Mobile devices have increasingly been at the forefront of online payment security, as smartphones present new data security issues. A recent National Cyber Security Alliance survey revealed that 72 percent of smartphone users have no security software, despite the fact that 27 percent of users shopped on their devices and 18 percent made payments.