In anticipation of the emerging technology that could leave consumers vulnerable to identity theft and credit card fraud if they use the devices for transactions, The Obama Administration recently introduced a mobile strategy. The policy paper, titled "Building a 21st Century Platform to Better Serve the American People," aims to establish safeguards that protect consumers' data and privacy when they are exchanging data on these media, according to Bank Info Security.

Similarly, The Canadian Bankers Association recently announced guidelines for mobile payments that help merchants deploy the new systems in tandem with payment processing services they already have in place. It also explains how they can use established security standards with the new systems to offer customers more complete protection when completing remote transactions.

Until secure industry standards is developed, merchants might find they have to invest in their own fraud management system to protect customers and reduce scope. Innovations such as tokenization can ensure shoppers' credit and debit card information stays confidential whether they're making purchases in person or online. 

In fact, nearly half of all retail stores indicated they have plans to use the mobile devices in brick-and-mortar stores this year, according to an RIS News study. However, tablets are also proving to be an important part of ecommerce strategies. Consumers tend to spend more when they make online payments on tablets, according to Forrester Research.

In the State of Retailing Online research, Forrester found 49 percent of retailers said ticket sales for online orders were higher when customers were shopping on tablet-optimized websites instead of standard ecommerce pages

"Retailers must continue to look for unique ways to elevate their brand in such a competitive market. Tablets and mobile devices offer the perfect answer, with opportunities to create specialized apps, drive web sales and create an engaging and convenient shopping experience," said Shop.org executive director Vicki Cantrell.

In support of the news from the NFC Solutions Summit, a study by eDigital Research found 89 percent of consumers who used mobile devices to make contactless payments at least one time before were likely to use them again. The first ever Mobile Payment Index also found that among those who owned an NFC-enabled mobile phone, nearly half (47 percent) had used them to complete a transaction.

"Smartphonatics are driving the adoption of mobile banking and payments and will be an agent for change," said Ron Shevlin, senior analyst at Aite Group.

Shevlin explains that Smartphonatics are a distinct group, representing one quarter of the consumer population who have changed their banking, shopping and payment behaviors after investing in a smartphone. A study by Aite Group and ACI Worldwide revealed 70 percent of these customers had used their mobile devices to make payments compared to just 25 percent of non-Smartphonatics.

As more consumers adopt smartphones and alter their behaviors, merchants might realize a growing demand for contactless payment capability.

Another roadblock is the lingering concern. Of the study's participants, 35 percent said their concerns over security and fraud would keep them from using the systems. A separate study by VoucherCodes revealed strikingly similar findings – 36 percent of consumers said fears about fraud would influence them to avoid the payment innovation.

Even if those worries won't prevent them from using the technology, a much larger portion of the population report reservations centering around security – 57 percent of Canadian consumers and 59 percent of shoppers in the U.S. – according to a Global Shopper Survey by WorldPay.

"It’s not surprising that we’re seeing this sort of wariness from consumers. Unlike mCommerce, where consumers were driving the change and shopping online via their mobiles … it's up to retailers and technology providers to push for this next revolution of the market," said Derek Eccleston, head of research at eDigitalResearch.

Retailers can help make the push by offering customers the most secure methods for completing transactions, whether they're using magnetic stripe cards, entering account information for online payments or tapping an NFC-enabled device against a terminal. 

Growth in the industry might be owed in part to the growing ecommerce marketplace. Companies like Omaha Steaks provide consumers with a high-quality virtual store that allows them to view products, read reviews and make online payments for nationwide delivery.

This degree of convenience makes it easy for busy shoppers to order food items for their own households and enjoy store-to-door delivery, but they can also use the service to ship special meals or simple staples to family and friends across the country, such as children away at college. In fact, Omaha Steaks has been so successful in ecommerce that it has developed a social presence as well. The frozen food company now has a Facebook store as well where customers can make purchases and get special deals.

In another success story, Paul tory launched Butcherman, a website for his wholesale meat business that brought in $320,000 during the first year of operation and is expected to yield over $1.3 million in 2012, according to Practical Ecommerce.

As businesses in a variety of industries realize ecommerce is a viable way of boosting additional revenue, they should consider developing a visually-pleasing, user-friendly website that also provides secure payment processing. 

This isn't surprising considering Singapore earned the highest score on MasterCard's Mobile Readiness Index. The country earned 45.6 points out of 100, just ahead of Canada, which earned 42 and the U.S. with 41.5. Scores were based on six considerations indicating the market's preparedness, including regulations, mobile commerce clusters, infrastructure, financial services, environment and consumer readiness.

According to MasterCard's research, Singapore scored better than the average for regulations, which will become an important factor in widespread adoption. Consumers still cite security concerns as one of their primary reservations about mobile credit card payments.

One strategy to boost security of the new payment technology is to educate customers, reports Bank Info Security. Paul Smocer, the technology policy division president of the Financial Services Roundtable, told the source consumers need to understand that when they link phones with payment information, they are no longer a device just for communication and as a result, need more protection.

Retailers can do their part by making transactions as secure as possible. New solutions such as tokenization encryption replace the confidential account data with a unique token before it's transmitted, processed or stored for greater protection.

While a cashless society offers convenience to customers and retailers, it leaves tipped employees in a predicament. Restaurants and hair salons can simply add tips onto credit card totals, but other positions such as valet parkers, tour guides and bell hops still rely on collecting cash. Fortunately, a new device has been developed, using mobile payment technology, that will make it easy for customers to tip employees with just a smartphone.

The online payment technology works with a mobile phone camera and a scannable barcode. Barcodes can be printed on business cards, t-shirts, temporary skin tattoos and badges, or printed on signs that are displayed at service stations. When a customer is ready to tip, they simply scan the barcode and enter an amount that will then be processed and deducted from an online account.

Large hospitality operations could invest in credit card processing technology that makes it easy for customers to leave tips and complete on-the-go transactions.

In fact, shoppers have been steadily bumping up their spending, by approximately $100 each year since 2009, the source reports. If this trend continues, customers might appreciate more convenient ways of completing online transactions. Those who have security concerns might prefer adding cash to their electronic accounts at a kiosk rather than performing the transfer online with credit and debit card information.

The pilot program started last year in Dallas, when Coinstar machines around the city were outfitted with options to funnel cash and coin totals into electronic payment accounts. So far, it's been a success, with 40 percent of those who tested the program returning to the kiosks to perform additional transactions, Dan Schatt, head of financial innovations at Paypal, wrote in a blog post.

As consumers continue spending more of their disposable incomes online, it will be even more important for retailers to securely accept a variety of payment methods. 

According to a WorldPay study, 42 percent of Canadian consumers cited travel accommodations as the most popular items to purchase online, followed by event tickets and books.

"The on-the-go convenience of smartphones has facilitated their emergence as an essential companion for travelers," said Mark Donovan, comScore mobile SVP. "There has never been a better opportunity for suppliers and OTAs to invest in their mobile strategies to provide a great experience and win loyalty from their customers."

In fact, online travel agency Orbitz recently overhauled its efforts to provide customers with a better mobile browsing and shopping experience since 51 percent use their phones to search for flights and 18 percent book them on the devices, according to a study by comScore.

Online travel agencies and other service-centered industries that used to exist solely in brick-and-mortar locations are successfully transitioning into the digital marketplace by offering customers greater convenience when it comes to searching for information and completing credit card payments.

The success of the internet publishing industry is owed in part to the popularity of online book sales. According to the Global Shopper Study by WorldPay, books are the third best selling ecommerce product in the U.S. and the number one seller in Canada. They represent 22 percent and 26 percent of total online spending in these nations, respectively.

When it comes to mobile commerce, the industry performs even better. Nearly half (46 percent) of U.S. shoppers and 37 percent of those in Canada buy books when making purchases on their mobile devices.

As ecommerce continues to become more popular, publishers have been forced to adapt in order to capitalize on payment processing opportunities, according to Practice Ecommerce. Many web-based retailers are now looking to the publishing industry to add value and enhance the quality of their websites, while providing customers with the best shopping experience. REI, Radio Shack and Gilt are three businesses that have hired the help of publishing professionals to offer customers entertainment and information while they browse products and make online payments, the source reports.

Merchants that want to boost sales and gain an edge on the competition might consider adding articles or high-quality pictures to improve their pages.