Mobile payments are payments that are made with a smartphone or tablet. According to Allied Market Research, the mobile payment market is predicted to grow 33.8% from 2017 to 2023. The majority of mobile transactions are in the retail market, and with the rise of mobile applications for renting everything from cars to hotels, hospitality and transportation are projected to have the highest rate of mobile transaction growth by 2023.
Canada is one of several countries that has seen rapid growth in smartphone use with a jump of 56% of Canadian having smartphones in 2015 to 68% in 2016. In addition, increased 4G network adoption has made mobile payments more feasible, and therefore they are being used more. However mobile payments do not come without risk, and one particularly growing risk of using mobile payments is fraud.
According to a Mobile and Payment Fraud Report conducted by Kount Inc, businesses that accept mobile payments have also grown from 2% globally in 2013 to 10% in 2017. Twenty-three percent of businesses that participated in a survey for the report indicated they believed that within 2 years half their revenue would come from mobile payments. At the same time, 40% of those surveyed indicated they had been victims of mobile fraud payments in the past year, almost double what was reported from the previous year. In fact, 70% of those that responded to the survey indicated they find it important to be able to detect when a mobile device was used to pay for any item.
While fraud continues to plague mobile payments businesses understand mobile payments are growing it popularity and therefore they will need tools and innovative ways to combat mobile payment fraud in the future.