Why there is a threat to mobile payment system?

E-wallet technology has set its standard to the conventional way within the next decade, because its consumers can make the payment for their purchases with the mobile devices both in the store and online.

As a result to this, mobile payments industry is making huge profits and is beginning to appear with a collaged of solutions. However, with mobile phones being the channel that processes these large sums of money transactions, the opportunity is very high to collect an extraordinary amount of consumer data on how people spend their money along with their personal details as well such as their bank account information. This may lead to the problems for the consumers.

Be careful buyers:

According to the new survey which was conducted by law professors at the University of California at Berkeley states: “Consumers could wary away from using handsets to pay for purchases If they would get to know that in exchange their personal information is being tracked away by the company and can be used for other illegal purposes also.”

This is the reason that four out of five respondents have protested to the transfer their phone numbers to a store from where they purchase goods which indicates that wide number of consumers are highly sensitive about their personal information.

Many consumers also don’t know or usually become confused when dealing with the companies like Apple or Paypal that how they use their personal information whenever they make any purchase.  However, when it comes to directing the companies with the bank accounts of consumers, they become very much concern and conservative.

Lack of infrastructure and proper arrangements for the privacy policies is also a lack on the organization side which may face the privacy concern issues from their consumers. The champion of the mobile payments race is therefore would be the one that can manage and coordinate the interests and protocols of both the banks and consumers, credit card companies and of all the carriers and merchants also.

Benefits of Mobile Payments:

Mobile payments are welcomed to get include into the next major five innovations, but have been slow to arrive to the U.S due to the barriers into the financial institutions and because of the problems explained above.

However, the trend of making the payments through mobile phones has become common in Japan.

The opportunity and benefits that mobile payments offer, and the ease and convenience for consumers for making the payments is simply too suitable for the consumers. Many experts have also pointed out that putting a digital wallet solution can bring a revolution in the future.

Money is becoming more obscure nowadays, more abstract, and consumers may remain nervous about exposing it to such kind of devices and systems that are not yet standardized and whose security is constantly being questioned everyday.