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Mobile Payments: Are Corporations Ready to Manage Working Capital by Smartphone?

Mobile payment companies must take security implications into account.

The businesses that have yet to prepare for the onslaught of mobile payments coming their way may speed up the process once they get an idea of how quickly interest in the technology is mounting.

Last month, PayPal, an industry leader in the online payment market and a subsidiary of eBay, made its third increase in its prediction for 2011 mobile payments revenue. According to PayPal, mobile payments will reach a total of $3 billion. That's twice the amount the company initially predicted, given before the year started, and $1 billion higher than its February forecast.

With numbers rising that quickly, businesses looking to target the new frontier of ecommerce will need to bolster their technology resources. Conveniently, the Payment Card Industry Security Standards Council updated its guidance standards for mobile payments just days after PayPal upped its prediction last month. In its checklist, the PCI SSC provides advice on mobile payments in relation to the cloud, virtualization and other technology that businesses should take into consideration.

So far, the attention afforded to mobile payments has prompted many businesses to get proactive about protecting their enterprise capital exchanged via mobile devices. Market research firm Goode Intelligence predicts the market for mobile phone security products and services will exceed $30 million this year, reaching $161 million by 2015.