Understanding the nuances of mobile payments
September 09, 2013

There is no doubt the ability to accept mobile payments has had a profound impact on the way businesses and consumers interact in the e-commerce industry. According to The Washington Post, mobile commerce now accounts for nearly 1 out of every 10 dollars spent online. The source also said smartphones outperformed desktop computers as mediums for online retail shopping in June 2013.

As the mobile commerce industry continues to grow, many businesses are still struggling to fully understand how to properly integrate electronic payment systems into their operations. Mobile Payments Today said companies inexperienced in accepting mobile payments often fail to distinguish between the different systems available. A basic understanding of electronic payment technology is essential to being able to effectively offer it as a service. However, what's even more important is understanding how the characteristics of an individual business should influence which technologies are most appropriate for the target clientele, Mobile Payments Today stated.

The Washington Post said even the existing data about the effectiveness of mobile commerce can be confusing. For example, conventional wisdom dictates tablet devices are much more accommodating to the conveniences of mobile payment processing. However, according to The Post, consumers are adopting smartphones at a much faster pace than they are tablet devices. In other words, tablets may be driving more sales on a per-use basis, but more people are doing their e-commerce shopping on mobile devices.

Another nuance is that many consumers practice different browsing behaviors depending on the kind of mobile device they're using. According to ComScore, consumers are more prone to simply browsing products on their tablet devices, while actual engagement is more common on mobile app platforms.

Having a deeper understanding of current e-commerce trends is helpful for companies that want to accept mobile payments. Doing so will not only create a more effective long-term strategy, but will also save money in the short term, as well.

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