Page 9 - Advanced_Payments_Report_2014

ADVANCED PAYMENTS REPORT 2014 – SPONSORED BY

Recently we have seen very innovative approaches introduced. For Mobile Online
example, during the last quarter of 2013 Square launched Square
A clear and consistent message from the surveys over the past few
Cash in the US. This is a P2P payment system that ofers a simple
years has been that the industry continues to think mobile and
user experience in the industry and currently is free to use for both
online channels as similar and complementary, or – borrowing from
senders and receivers. Under the Square Cash model, a user sends an
the popular industry lexicon – we are moving towards “channel
e-mail with the amount of money they want to send to the receiver,
convergence.” Nevertheless, cart abandonment rates are higher with
copying Square as another recipient. Upon receipt of the e-mail,
mobile devices than with other devices.
if it is the frst time they receive money the receiver has to enter
their debit card number. If they have used Square Cash, they simply In response to this, retailers are developing applications and
accept the payment. The system allows anyone, with a debit card enhancing their websites to ensure that the mobile shopping
(from any US bank), to send or receive money. experience becomes more attractive and convenient. Today,
many retailers still ofer vastly diferent browsing, searching and
In this very busy industry space one thing is true; we can continue
purchasing processes across channels. Digital wallets, discussed
to expect new competitors to enter the market and incumbents to
later, could help streamline these processes to make purchasing
expand their presence, including the major card brands.
convenient, if not similar, across all channels.
Mobile payments for digital goods can be considered an extension
of mobile Internet payments. Even when the fnal goods received are
diferent, for example, physical vs content downloads, the purchase
process is converging.
Despite growth in digital downloads, the number of mobile
transactions related to digital downloads could decrease slightly
due to the current changes in the media distribution industry,
like the creation of subscription services. In any case, mobile
online payments continue to rank among the top three choices
in our surveys.

mPOS

mPOS devices are acceptance accessories that enable mobile
devices to be used for accepting card payments. One of the key
changes in the survey compared to past years was the big jump in
industry expectations for mPOS from 16% to approximately 40%
in the last two surveys, placing mPOS as one of the top perceived
opportunities... mPOS is further explored elsewhere in this report.

www.edgardunn.com | www.paymentscardsandmobile.com Edgar, Dunn & Company in association with Payments Cards and Mobile 9