How Mobile Wallets are Impacting eCommerce

New Technology from Apple Pay and Android Pay is Changing eCommerce


Mobile wallets are continuing to revolutionise the way in which consumers interact with brands.

Not only are consumers able to pay at brick-and-mortar stores using their smart phones, now they can use the same payment interface while shopping online.

eCommerce, one of the most vulnerable avenues for credit card fraud, has suddenly become less of a risk.

What are the new payment options?

Payment options for consumers changed drastically with the introduction of near-field communication systems. By setting up a mobile wallet on their cell phone, consumers are able to checkout without swiping their credit card. Protected by biometric technology, the transaction is only completed with the use of the consumer’s fingerprint.

This technology, offered through both Apple Pay and Android Pay, made purchasing items at a traditional merchant fast, easy and secure. However, the payment interface only worked when the consumer was present at a merchant’s terminal, limiting its use to in-person transactions.

Recently, both Apple Pay and Android Pay made changes to their systems, allowing consumers to use this OS-Pay through their web browsers, shaking up e-commerce once again.

What does this mean for consumers?

With the introduction of newly-dubbed OS-Pay as an internet payment source, consumers can select their Apple Pay or Android Pay information at checkout from any participating internet retailer. The transaction will be completed easily and quickly, with no additional steps or fees for consumers. This change eliminates the need for inputting credit card information on websites, reducing the risk of identity theft and consumer fraud.

Similar to the EMV technology that uses tokenisation to complete a transaction, OS-Pay does not exchange actual credit card information with the merchant. Identifiable information is not stored with the merchant either, negating the possibility of card theft occurring because of hacking. Consumers can shop online with confidence, with a reduced risk of both criminal and friendly fraud.

What does this mean for merchants?

Merchants who accept eCommerce payments have struggled to provide safe, reliable payment options to consumers. PayPal, the current eCommerce giant, has cornered the market by providing a payment interface that adds a layer of protection for consumers. With the addition of new OS-Pay features, however, merchants have additional options to offer their consumers, with no additional fees or risk for themselves.

How will this increase e-commerce?

As the risk of fraud and theft decrease, more consumers will be likely to take advantage of eCommerce opportunities, increasing the number of transactions for online merchants. The addition of mobile wallets to online sales will appeal to an even wider customer base and increase the likelihood of successful online sales.

Consumers are often hesitant to try new payment options, but as technology improves and merchants adopt the OS-Pay features, the eCommerce marketplace will benefit.

If you’re concerned about lowering your risk for credit card fraud, contact us today for more information on how we can help you.