As of 2019, more than 3 billion people now own a smartphone and while the devices themselves have certainly become more advanced, so has the online consumer experience. The rise of digital content consumption and the growth of mobile device ownership have both led to the birth of mCommerce. The introduction of mCommerce has made it easier than ever for businesses to offer their digital goods and services on a global scale, due to a low barrier of entry for potential customers.
However, for high-risk mCommerce merchants, accepting credit card payments is likely to be difficult. T1 Payments understands the challenges these businesses continue to face and through our mCommerce merchant accounts we continue to help high-risk businesses unlock the benefits of credit card acceptance for their mobile apps.
For any mCommerce business that is likely to process high-volume transactions (such as gaming, forex trading etc.) there is a perception of being high-risk. For many payment providers, this can result in transaction limits and volume processing caps being placed on the merchant, which can mean losing out on potential sales.
Mobile devices have made the setup of ongoing subscriptions a simple and convenient process for consumers. However, the offering of free trials is something that can result in a high percentage of chargebacks. In fact, 91% of consumers are said to willingly accept legal terms and conditions without reading them before installing an app.
Consumers may register for a free trial without the understanding that unless they cancel before their trial period ends, they will be billed automatically and put on a paid subscription plan. If a consumer either forgets to cancel or is unaware of this agreement, it can lead to attempts from the consumer to try and get their money back.
While mCommerce continues to gain momentum, so does card-not-present fraud. As mobile payments are made without the cardholder present, this can be seen an opportunity for criminals to exploit. By assuming a synthetic identity with real credit card numbers, criminals can attempt to make phony mobile payments.
Keeping mobile transactions safe and secure is incredibly important. T1 Payments understands this, which is why we offer robust fraud prevention tools to ensure both mCommerce merchants and their consumers are protected. By using our fraud scrubbing technology, merchants can reduce the risks of payment fraud and chargeback fraud, resulting in a stress-free experience.
mCommerce – The delivery of electronic commerce capabilities directly into the consumer’s hand, anywhere, via handheld wireless technology.
Now more than ever, people rely on mobile devices to manage their day-to-day lives. For consumers, this has led to a desire to make digital purchases without the constraints and inconvenience of having to use larger, heavier devices, such as a desktop PC or laptop. There are several key benefits that mCommerce has over older, more traditional methods of sale.
The sale of digital goods through mobile apps means both supply and demand can be fulfilled instantaneously. For a merchant, there is no concern of running out of stock or having to manage levels of inventory. For a consumer, products can be purchased and accessed immediately from any place and at any time, providing there is available internet access.
An essential part of any online transaction is security and when compared to eCommerce, the security capabilities of mCommerce are much more extensive. With mCommerce, regular security measures such as two-factor and multi-level authentication are present, however mCommerce can also offer biometric authentication (fingerprints, face ID and retina scans).
For mCommerce businesses, reaching out to customers about discounts or new product offerings is incredibly easy. Unlike eCommerce, a merchant is not required to send out emails to their customers – a channel of communication which can often be unreliable. Instead, mobile notifications can appear on a customer’s screen about new information and offers, in a way that is both instant and unobtrusive.
A snapshot of the m-Commerce business opportunity…
According to SensorTower, the total app revenue for 2018 saw a 22.7% increase from the previous year, with a combined $71.3 billion being spent across Google Play and the iOS app store.
By 2023, the potential for mCommerce is expected to more than double in global revenue, further enforcing the prospect of a promising and lucrative future for mCommerce merchants.