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Why e-Commerce Checkouts Need to Implement Mobile Payment


Earlier this month we published an article on How to Succeed as an e-commerce Startup, and one point was to optimize for mobile in order to avoid cart abandonment. We wanted to follow up with an article expressly discussing the developments in payment methods and what this means for your e-commerce business, particularly this shift to mobile wallets.

Digital Wallets Moving to Mobile

Although the past few years have seen an increase in e-wallets or digital wallets like PayPal and Amazon Payments, as well as entirely credit card-less solutions such as paysafecard, the future is increasingly mobile – what is now being termed as m-commerce, or mobile commerce. According to Mobile Payments Today, “the number of mobile money transfers is expected to increase by nearly 150 percent in 2015.”

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In response to such high expected growth, “several companies, especially those in the e-commerce and telecommunication services sector, have come out with digital wallets to help consumers,” according to an article by Finanical Express. Indeed, when you simply need to preload money or connect a credit card to your mobile wallet, without the risk of compromising your bank account or credit card, the allure is not surprising.

Near-Field Communication (NFC) and In-Store Payments

In-store payments have gone increasingly mobile through NFC methods. Although NFC payment methods are not exactly new, they have seen a spike in use with the emergence of mobile wallets from Apple, Google, and Samsung, as well as CurrentC, which will allow consumers to make purchases from their smartphones.

Not only is this system popular because it is easy and efficient, but it also safeguards credit card information as well. These mobile wallet applications work using a one-use-only random number that replaces a credit card number, known as tokenization, in order to protect consumers from fraud.

Apple Pay takes this further by using their biometric touch ID to secure transactions, as well as tokenization. Google, on the other hand, uses a tokenization method that is cloud-based – meaning that the information is not stored on the device, but rather on Google’s servers.

Mobile Apps and Online Payments

The emergence of this technology is applicable to e-commerce as well, as it will allow consumers to bypass information fields requiring name, birthdate, credit card number, etc. Furthermore, if the consumer can simply click an app button to pay with a mobile wallet, mobile conversion will go up and sales revenue will significantly increase.

The majority of web traffic is mobile after all, but often, as was explained in our article on e-commerce startups, mobile shoppers abandon their carts because of inefficient mobile checkouts. Accessing an app negates complicated mobile checkouts that frustrate users and ultimately cost e-commerce companies sales. And with “total mobile online retail payments expected to grow from $75.8 billion to $217.4 billion at a 23 percent compounded annual growth

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