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September 20, 2010

One eighth of all e-commerce transactions to be mobile by 2013 end: Gartner

Evolution of fraud detection tools expected to play part in turning mobile commerce into location- and context-aware commerce

By CBR Staff Writer

By year-end 2013, location information or profile information from mobile phones will be used to validate 90% of mobile transactions, according to information technology research and advisory company Gartner.

Gartner said that the rapid adoption of smartphones is forcing banks, social networks and other e-commerce providers to implement the kinds of fraud detection capabilities that have become mainstream with fixed-line computing.

Gartner research vice president William Clark said that because of the improving browser experiences on smartphones, mobile commerce and transaction execution are set to increase rapidly.

"We estimate that by the end of 2013, 12.5% of all e-commerce transactions will be mobile," Clark said.

The research house estimates that 70% of the largest 20 global card issuers will gradually adopt mobile context information to help detect fraud on fixed-line transactions, and that by year-end 2015, more than 15% of all payment card transactions will be validated using context-aware profile information.

Clark said that enterprise applications must detect fraud in these mobile environments, but fraud detection tools available today that work in fixed-line computing environments don’t work well or at all in the mobile world.

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"There are a number of methods that can be implemented to help enterprises detect fraud in the mobile space, but they are still in their early stages of development, and it will take until at least 2012 for them to transform from embryonic applications to technically mature systems that work easily and transparently across disparate mobile networks," Clark said.

Gartner vice president and analyst Avivah Litan said that the evolution of these fraud detection tools will play a part in turning mobile commerce into location- and context-aware commerce by increasing the confidence of businesses, financial institutions and end users.

"This increase in confidence will help open up new possibilities for context awareness that will be richer than they are in fixed-line commerce," Litan said .

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