Mobile: The Root of All Evil or Source of All Goodness?
Reading the headlines today, you could get whiplash from the contrasting way in which the mobile revolution is being portrayed. For the "Root of All Evil" angle, consider these stories:
- A woman used her debit card to pay for a slot machine game app on her mobile phone and hours later discovered hundreds of illegitimate purchases totaling more than $5,000
- T-Mobile’s CEO revealed a breach affecting 15 million mobile users: "Records include information such as name, address and birthdate as well as encrypted fields with Social Security number and ID number (such as driver’s license or passport number) and […] this encryption may have been compromised."
- CBS News reported that a little-known global network called Signaling System Seven (SS7) is used by every mobile phone and has a security flaw that is an open secret among the world's intelligence agencies...and hackers. This security flaw can be used to intercept and record anyone’s calls, texts, or movements.
As for the "Source of All Goodness" view, there are these stories:
- 47% of U.S. smartphone owners say they "couldn’t live without" their smartphones
- 37 more lives are saved per 100,000 patients when emergency services are called from a mobile phone compared to a landline phone
- Smartphone apps like email, calendar, texting, weather, etc. save people an average of 22 days a year compared to their pre-mobile, 1990's selves
So how is mobile perceived when it comes to eCommerce? Is it the "Root of All Evil" or "Source of All Goodness" for eCommerce merchants?
In the recently published Mobile Payments and Fraud: 2016 Report, nearly 40% of merchants think mobile is “far riskier” or “somewhat riskier” than traditional eCommerce. 15% think mobile fraud is increasing. And nearly 2 out of 3 merchants think standard eCommerce fraud prevention processes are not enough to fight mobile fraud and/or that mobile commerce requires very specialized fraud prevention tools. We’ll chalk those up to the "Root of All Evil" side of the equation.
On the other hand, a solid majority of merchants (59.5%) thought mobile commerce was "very important" to their overall growth plans. In fact, nearly 1 in 3 merchants thought that mobile would account for at least 50% of their revenue in two years. For some merchant types, mobile was even more critical to growth. For example, nearly 3 out of 4 Dating/Social Sites said mobile would account for at least 50% of their revenue in two years. Finally, out of all merchants, 41% said mobile’s most important benefit is Opportunity, while 24% voted for Convenience, 20% said Conversion, and 15% named Loyalty. Those all land on the "Source of All Goodness" side of the ledger.
Of course, there is a more balanced view. Yes, it’s true that mobile transactions are 2X more likely to involve fraud and merchants incur $2.08 in actual fraud loss for each $1 of mobile commerce fraud. And those definitely go into the "Root of All Evil" column.
But with a best-in-class mobile fraud prevention solution, you can capture more than your fair share of the $721.4 billion in global mCommerce transactions projected for next year (that’s nearly 3/4 of a trillion dollars…with a "t")! How? By offering a faster, smoother mobile checkout experience to customers. And fewer false positives so you can accept more orders. All the while reducing fraud losses, avoiding complexity, and streamlining day-to-day OPEX. Definitely in the "Source of All Goodness" column.
How do you get there? The first step is to get a better handle on mobile commerce by downloading the Mobile Payments and Fraud: 2016 Report. It features 93 data-packed charts and more than 100 pages of useful stats – like which mobile fraud prevention tools merchants prefer, which markets generate the most mobile fraud – international or domestic U.S., and much more. Do it today. So you can start making mobile the "Source of All Goodness" in your eCommerce operations.