Increase in smartphone usage drives mobile payments
May 07, 2013

Mobile payments are set to transform integrated payment systems in the near future. Many have predicted advancements in the technology will create a cashless landscape due to the current prevalent use of debit and credit cards at the point of sale among consumers. A new survey of smartphone utilization projects the increasing availability of portable devices that can support mobile payments will allow companies to drive sales on the go. 

More consumers own smartphones
According to comScore's "March 2013 U.S. Smartphone Subscriber Market Share" report, smartphone makers Apple and Samsung saw major sales increases during the month. The study found 136.7 million people in the U.S. owned a smartphone, which is up 9 percent from December 2012. The survey was conducted online throughout the month and observed data pertaining to consumers' primary mobile phone subscriptions.

Google Android continued to outperform other smartphone platforms with 52 percent of the market share, or 71.1 million subscribers, in March. Although this is down from December's 53.4 percent, the majority of consumers used Android last month.

Drops in smartphone prices and advancements in mobile payment processing technology may account for the rise in adoption among consumers. In addition, many in the U.S. are becoming aware of the ability to use their smartphones to make secure purchases, as the number of companies utilizing mobile payment platforms increased.

As the transaction method rises in adoption, however, businesses may see a rise in confusion about smartphone payments, due to devices varying across the market. Companies should stay up to date on which gadgets are popular.

Mobile payment software that offers end-to-end encryption across all smartphone devices, such as Sage Mobile Payments, continues to be the best option for businesses looking to integrate the purchasing platform into their payment processing technology. Accepting debit and credit cards drives sales, and implementing the technology at the point of sale through a portable device will provide companies more flexibility. Being able to accept plastic at venues, such as fairs or industry conferences, can help promote the business and customer satisfaction. For consumers, nothing is worse than not being able to pay for products because of outdated technology or using a payment processor that cannot connect to one's smartphone. Investing in portable purchasing software that is easy to use can foster growth and sales.

Nexus: G-WEBCD2