Mobile Payments: Pros and Cons

Back in January in their TMT Predictions 2015 report Deloitte forecast that in-store mobile payments would increase mobile paymentby 1,000 percent this year. In February an IMRG report found that visits to ecommerce sites via smartphone or tablet devices accounted for 45% of all ecommerce traffic in the UK. Then in April Google took the step to rank mobile-friendly websites over their non-optimised competitors, sending a clear message that 2015 is the year of the mobile device.

However research from and the Centre for Retail Research (CRR) estimates that retailers are missing out on £6.6 billion a year, by not going mobile. Their report reveals that 17% of retailers have no mobile offering.

So, are you missing out?

Getting Mobile Retail Right

The statistics above should be motivation enough to persuade retailers to embrace mobile payments. But there are key considerations to make before you launch your business, and reputation on mobile consumers.

The same report from and the CRR, revealed that 40% of consumers feel that mobile retail could be improved: they found that slow loading pages, websites that freeze and too many products to search through are the top three barriers for shoppers using mobile. Security and poor payment options are also key concerns.

Poor performance is a very serious issue. In yet another report, this time from Oracle Mobile, 48% of UK millennials said that a poor mobile experience would make them less likely to use a business’s other products. Therefore if you are to offer mCommerce, you really need to get it right.

Mobile Payment Options

The online retailer has two main options for taking mobile payments.

1. With an app,
2. With a mobile browser.

Mobile Apps

While mobile apps can be extremely effective for those retailers whose customers shop with them regularly, you do need to be Level 1 PCI compliant to take payments via them. However, with the introduction of JSON, a method of coding and messaging, it won’t be long before non- PCI merchants can provide a secure app-based experience for their users.

Mobile Browsers

While merchants using mobile browsers do not need to be PCI compliant if also utilising a payment service provider, such as Secure Trading, the customer journey needs to be seamless if this method is to be successful. Several factors can deter consumers from completing a purchase, or returning to your mobile site for future purchases.

• New customers need to enter their card details and may distrust a payment system that is not fully integrated into the merchant’s site.

• Customers using gaming sites or buying downloadable digital products need their transactions to be instantaneous if they are to become repeat customers.

• Issues such as slow loading and freezing pages result in abandoned shopping baskets and customers going elsewhere,

All these problems cause customers concern, and crucially make them question the security of your website. This can adversely impact on your reputation potentially putting customers off making any purchases from you: including using other methods such as online via a desktop computer, or in-store.

Making Mobile Payments Seamless and Secure

Fortunately, there are solutions to this. First and foremost should be an excellent understanding of the customer journey, so you can address any issues before your customers come across them. Here’s how:

Responsive Website Design: A ‘mobile-friendly’ website instantly resizes and reconfigures its’ layout when viewed on a mobile device. This will ensure that your customers can view your products and information easily using their mobile browser, and that adding products to their basket and the checkout process is intuitive. You can check whether your website is mobile friendly by visiting this page.

Fully Integrated Payment System: If you plan to use a payment service provider, like Secure Trading, you should look for one who can offer an integrated payment process. This means that your payment page loads automatically and quickly, and that it reflects the design of your website: giving consumers confidence that their payment is secure.

One Click Option: For returning customers a ‘one click’ or ‘fast checkout’ option improves the user experience and encourages loyalty and repeat purchases. Behind this technology a process called tokenisation bypasses the issue of storing payment card details and PCI compliance. This technology is also critical for merchants operating gaming sites and similar, those who need instant payment so that credits or downloads are processed immediately. Further information on tokenisation can be found here.

Trust Badges: For the nervous consumer, especially those who are new to mCommerce or your business, a trust badge can reassure them that your payment process is secure and their privacy protected. 3D Secure or Secure Trading’s badges are recognised and trusted badges that can be embedded on websites by those using these services.

The online retailer cannot afford to ignore mCommerce, or deliver a substandard mobile offering. Mobile retail is in the ascendant; consumers are becoming increasingly confident in making purchases via their smartphones and tablets, and those retailers who don’t provide a mobile option will most definitely be missing out.

If you would like to discuss how you can optimise mCommerce for your business through an enhanced mobile payment service, contact a member of our team. We would be happy to talk you through PCI compliance, tokenisation and converting mobile browsing into payments, with specific reference to your business and objectives. Click here for contact details.