Market Trends of Mobile Payment Security Software Industry
Retail Industry Holds Significant Share in the Market
- Retail has become a mobile function in the last five years, largely due to the adoption of mobile e-wallets. The launch of 5G accelerates retail technology innovation, which benefits consumers. One of the primary causes is the rapid expansion of e-commerce and online shopping over the past ten years, which has increased the need for secure payment processing solutions. Customers must be assured that their financial information is secure as they shop more and more online. Retail and e-commerce businesses have made significant investments in payment security technology and solutions to meet this demand.
- Global merchants like Walmart, Target, and Dunkin' Donuts are embracing mobile payments by utilizing the strength of loyalty and using mobile payments to make the checkout experience as simple as possible. To sustain client connections, a growing level of payment security is required.
- Rambus has launched "Vaultify Shop," which allows businesses to digitize coupons, gift cards, credit cards, and loyalty points into a single secure mobile wallet, resulting in a seamless shopping experience for customers.
- In addition to this, in November 2022, Honeywell introduced the Honeywell Smart Pay, a contactless software payment solution allowing the company's powerful mobile computers to become reliable and secure, and compliant payment terminals, thereby accepting contactless mobile payments from anywhere a business delivers or sells goods and services. Honeywell Smart Pay provides service employees and sales associate the power to finalize payments on-the-spot in retail, public transportation services, parcel delivery, and other businesses where mobile payment can be utilized.
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North America to Dominate the Market Share
- North America is a potential market for payment security due to the presence and attention of major suppliers, including Visa Inc., U.S. Bancorp, Mastercard, and Shift4. Additionally, the region's suppliers and providers now have more expansion opportunities, encouraging the growth of the North American regional market. Digital payments are increasingly being accepted for payments at malls and restaurants.
- It is predicted that digital/mobile wallets will soon replace credit cards as the most popular online payment system, accounting for a significant portion of North American eCommerce spending by 2023. Furthermore, retail payment systems are regulated by several state and federal agencies. Payment systems, for example, are regulated by the Electronic Funds Transfer Act (P.L. 95-630), the Bank Secrecy Act (P.L. 91-508), and various state licensing, safety and soundness, anti-money laundering, and consumer protection requirements.
- The United States has an established consumer market that is focused on innovation. Despite their low growth pace, PayPal and Apple Pay have a solid presence in the region. Apple Pay enables consumers to make safe transactions in shops, applications, and online without entering their credit card information every time.
- In a store, the mobile wallet employs near-field communication technology, which allows two devices positioned within a few centimeters of each other to transmit data. Apple Pay generates a new token each time a user uses it, ensuring merchants never get the real card number.
- To improve their payment operations and access a larger consumer base, businesses are increasingly adopting digital payment solutions, such as mobile payments, e-commerce platforms, and online payment gateways. Microsoft conducted a study of more than 150 small and medium-sized businesses in the US in April 2022 to better understand their security requirements. Nearly 25% of small businesses reported a security breach in the preceding year, and the poll finds that more than 70% of SMEs are concerned about cyber threats and payment security.
- Furthermore, the popularity of peer-to-peer payments (P2P) has shown that convenience may be one of the most effective motivators. Consumer Reports noted three P2P payment app problems and risks for consumers: misdirected payment problem resolution, payment security, and privacy concerns. However, this hasn't stopped customers from adopting this technology.
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