Despite the hype surrounding mobile payments, the use of this payment instrument remains low. According to eMarketer, only 1% of all trades are done using mobile devices. And e-commerce accounts for only 6% of total retail trade worldwide.
These numbers are in line with data published by the US National Retail Federation. eMarketer predicts that by 2025, e-commerce (of which mobile commerce is a part) will account for no more than 9% of all trade transactions. In addition, these numbers are relevant for the United States, the homeland of the Internet and gadgets. On average, the share of e-commerce worldwide is even lower.
The announced figures demonstrate the current situation and the prospect of how we are still tied to offline shopping in brick-and-mortar stores. While many companies are active in developing mobile commerce solutions, there is still a long way to go to bring the world of real and virtual commerce closer together. First and foremost, a stronger connection is needed between the mobile user and the retail store, where 90% of purchases are made.
Host Card Emulation (HCE) technology, which literally gained popularity within a year thanks to the support of the largest international systems, may become the key link necessary for bringing mobile shoppers closer to physical stores. In just three steps, technology can initiate a new phase in mobile commerce.
These numbers are in line with data published by the US National Retail Federation. eMarketer predicts that by 2025, e-commerce (of which mobile commerce is a part) will account for no more than 9% of all trade transactions. In addition, these numbers are relevant for the United States, the homeland of the Internet and gadgets. On average, the share of e-commerce worldwide is even lower.
The announced figures demonstrate the current situation and the prospect of how we are still tied to offline shopping in brick-and-mortar stores. While many companies are active in developing mobile commerce solutions, there is still a long way to go to bring the world of real and virtual commerce closer together. First and foremost, a stronger connection is needed between the mobile user and the retail store, where 90% of purchases are made.
Host Card Emulation (HCE) technology, which literally gained popularity within a year thanks to the support of the largest international systems, may become the key link necessary for bringing mobile shoppers closer to physical stores. In just three steps, technology can initiate a new phase in mobile commerce.
- Thanks to HCE technology, users will be able to make secure payment transactions at merchants using their mobile phones and payment cards stored in the cloud. Unlike remote cloud services provided by mobile payment applications, HCE does not require a network connection at the time of the transaction. The transaction takes place in a contactless way, using the payment acceptance system already installed in the store with NFC or barcode support.
- HCE allows you to use existing mobile payment applications. Thus, a merchant or a bank can only update their application and accept mobile payments using it. In turn, users are relieved of the need to download a new application or re-enter their card details. Banks, merchants and app providers can leverage their investments, protect their brand, and strengthen customer relationships.
- Although the cards are stored in the cloud, HCE payments are made in real time. And, of course, in full compliance with the EMVCo principles and compliance with the MasterCard and Visa rules. This lowers interbank costs and makes the technology more attractive to merchants.
