India has a huge appetite for m-commerce, says study
Mobile commerce or m-commerce is booming in India, with 97% of consumers looking for more mobile interactions with banks, telcos, retailers, utilities and other businesses, according to a recent report by SAP AG that also reveals four out of five users are making parallel usage of mobile phones other than just calls and text message.
According to SAP researchers, the growing popularity of m-commerce in the country also highlights the increase in the internet penetration with 63% of consumers accessing the internet on their mobile at least once a day. Nearly, 65% of the users feel mobile is a convenient mode of transaction leading to a greater consumer adoption in this segment.
The study found that India scores high in using mobile for banking transactions when compared to other countries in the world. As per the statistics, excluding voice messages, most of the mobile owners turn to their mobile phones for bill payments (78%), bank transactions (72%) and for setting up a new account (74%). Rathin De, General Manager – IT, ADC and CMS at United bank of India believes that the future of banking is mobile. “Providing services that are lower cost and personalized will encourage users to make more bank transfers through their mobile phones, in turn increasing the mobile based consumption in India,” he says.
- To read Rathin De’s exclusive interview with CXOtoday click here.
- Also read: ‘Banking industry to boost m-commerce growth’ click here
Apart from banking services, the study notes that more than half of the consumers in India indulge in maximum mobile purchases for entertainment service like cinema, theatre shows, DVDs, sport games followed by music downloads. There is more or less an equal interest in garment, footware and other accessories through mobile as well as 40% opt for books or e-books shopping via mobile devices.
“The dynamic nature of business as well as the freedom to operate from different parts of the world and at odd times has created a need for mobile commerce becoming mainstreamed,” said Neeraj Athalye, Head - Sales, SAP Platform & Technology Business at SAP. Athalye believes while embracing the appetite for mobile purchase adoption, it is vital that organizations looking to develop products and services for India are able to balance the desire for ease and convenience with security requirements.
In the study, 57% of users in the country believe that once they gain confidence in mobile security, they will increase their mobile payment activity.
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