M-Commerce Transactions To Touch 2-Bn By 2017

by CXOtoday News Desk    Nov 19, 2014

mobile commerce

The mobile revolution is already underway globally and is paving exciting growth for business and commerce. According to a new report by Juniper Research, over two billion mobile phone or tablet users will make some form of mobile commerce transaction worldwide by the end of 2017, up from 1.6 billion this year.

Mobile consumption of services including banking, money transfer and purchases of goods and services has gone up tremendously in recent times, says the study. This is driving consumers to migrate from desktop usage to their smartphones or tablets. The report also found many first-time e-commerce users are also accessing their mobile devices for transactions.

In India for example, nine out of 10 customers are looking for more mobile interactions with banks, telcos, retailers, utilities and other businesses, found an SAP study released last month, which stressed on the increased internet penetration in the country is driving consumers nearly two-third of the consumers to access internet on mobile at least once a day.

According to Juniper, the opportunity for mobile to offer consumers in emerging markets first-time financial inclusivity through the provision of mobile wallets, enabling services beyond payments such as savings and micro-insurance.

In the process, the report highlighted the potential of social networks in accelerating mobile commerce adoption.

“Brands and retailers should certainly seek to integrate their offerings with players such as Facebook and FourSquare. Integration offers reach, allied to the potential to target specific user demographics,” said report author Dr Windsor Holden.

A few hitches remain…

While consumers are upbeat on mobile commerce, researchers found consumer concerns around transaction security remain the primary inhibitor on service adoption.

Neeraj Athalye, Head - Sales, SAP Platform & Technology Business at SAP, 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.

Besides security, other technical hitches such as downtime or timed-out errors when browsing m-commerce sites also affect purchasing decisions and company perception. Nearly eight out of ten smartphone users experience technical issues when browsing mcommerce sites, which in turn affects purchasing decisions and company perception, finds a recent Rackspace study.

Juniper study too believes that with mobile becoming an integral part of business, companies must put their mobile strategy as a priority on the business agenda. For ecommerce companies to be successful in mobile, the whole user experience needs to be reviewed.

The report found that in a number of developed markets, mobile devices would account for over half of online transactions within five years. However it also observed that while contactless payments had yet to gain traction outside Japan and South Korea, Apple Pay was expected to provide Near Field Communication (NFC) with real momentum.

Toward this end, the report also recommends the integration of operator billing capabilities with websites to monetize digital content amongst a wider user base.