The integration of near-field communication technology and cloud-based systems in the mobile payments market poses security risks, warned Frost & Sullivan.
A group of Internet companies, systems integrators and security firms have teamed to offer a strong online authentication standard designed to replace the need for passwords, which provide weak authentication because of user reuse as well as having to protect against malware and phishing attacks.
A recent PayPal mobile wallet trial in a New Jersey mall suggests both retailers and consumers remain confused by how the service works.
Mobile payments in the United States are predicted to increase at a 48 percent compound annual growth rate, from $12.8 billion spent in 2012 to $90 billion by 2017, according to the latest research from Forrester.
eBay anticipates its mobile payment volume will exceed $20 billion in 2013. The company also said its PayPal unit will handle around $20 billion in mobile transactions this year. The figures are up significantly from what the company reported for 2012.
PayPal is partnering with retail and hospitality services firm NCR to offer consumers new mobile payment options at restaurants and retail stores.
PayPal is extending its fledgling mobile wallet service to five additional U.S. retail partners, increasing the number of physical stores supporting the payment processing technology to 18,000.
Square is rolling out a new mobile gift card service integrated with Apple's Passbook virtual wallet application.
PayPal is now selling its PayPal Here credit card reader at 1,800 AT&T Mobility stores across the country. The partnership represents PayPal Here's first U.S. retail deal.
eBay reported revenues of $3.4 billion for the third quarter of 2012, up 15 percent over the year-ago quarter.