Industry News

11/10/2011 - The mobile payment market is growing exponentially and it is only a matter of time before this credit card processing system is a part of every person's daily life.

According to American Express Open Forum, the wireless world has grown immensely in 15 years, from less than 34 million cellphones in use to more than 300 million wireless accounts today. Also during that time frame, cellphones shifted from simply allowing users to make calls while away from home to highly complicated, multi-functional, web-enabled devices.

Mobile experts don't need a crystal ball to project the future of the cellphone market. Technology has recently started to emerge that will allow the newest incarnations of smartphones and tablet computers to make mobile payments.

Open Forum explains, however, that there are many aspects to the mobile payment processing industry. The phrase "mobile payments" encompasses a number of different details, says the site.

Near field communications, or NFC, refers to the technology that allows smartphones or tablets to communicate with another device at a close proximity to make a payment and exchange other necessary information. With this technology also comes Secure Socket Layering, or SSL, which encrypts all data being transferred to prevent theft and fraud. Additionally, software and applications will allow consumers to manage their finances like a mobile "wallet."

On top of the technological details regarding mobile payments, this emerging industry has positive business connotations. Marketing, for one, can be expanded thanks to the mobile market, says the website. Mobile payment applications allow users to store customer loyalty cards in these digital wallets, which can help businesses instantly track spending and pass along special offers and discounts. Customers will also benefit from mobile payment technology because purchases can be made in mere seconds and, as a result, waiting in line could be almost eliminated.

Open Forum reminds business owners to keep in close contact with their merchant account providers to stay up-to-date on product offerings, potential upgrades and changing pricing plans. Merchants will also soon have a number of account options, such as mobile arrangements with their existing payment processing companies or new potential contracts with emerging mobile payment companies.

"There are numerous competing mobile payment applications currently available. Beyond Google’s mobile wallet, the payment networks are developing their own independent mobile payment solutions. Numerous startups are working on this technology as well," explains Open Forum.

According to PCMag, mobile payments could account for between $670 billion and $1 trillion worth of transactions throughout the world by 2015.