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China’s mobile commerce sector dominated by highly competitive company

| July 8, 2013

Alibaba reigns over Chinese mobile commerce

China’s mobile commerce sector has been growing at a rapid pace. The sector is currently worth approximately $41 billion and is increasing in value at a nearly daily rate. The popularity of mobile commerce has encouraged many companies to enter into this space in order to find some financial success. Unfortunately for many of these companies, however, they have to compete with the country’s leading online retailer, Alibaba. Before mobile commerce emerged, Alibaba already held a dominating presence in the online retail space. Now, Alibaba has come to dominant mobile commerce as well.

Alibaba boasts of 75% market share in mobile commerce sector

The online retail market in China is currently valued at $177 billion and Alibaba holds nearly 40% of this market. The company is so large and has established such a strong foothold within China that it has effectively shut out its competitors, including eBay and Amazon. While eBay has managed to find some room for growth in China, this growth has largely been dictated by Alibaba. In terms of mobile commerce, Alibaba currently represents 75.1% of the market.

Chinese mobile commerceRumors suggest Alibaba may soon go public

Despite the sheer size of Alibaba, the company remains privately held. There are rumors suggesting that the company may soon go public, which could be a major opportunity for investors interested in online retail and mobile commerce. Given the company’s proficiency for shutting out its competitors, investment interest in Alibaba has been significant for several years. Whether the company will go public in the future remains unknown.

Security concerns derail growth in other countries

Mobile commerce is becoming a major staple in China, but has yet to establish a major presence elsewhere in the world. In the U.S. and the United Kingdom, mobile commerce has established a relatively strong foothold. In these markets, interest in mobile payments is offset by concerns regarding the security of mobile commerce platforms. These security concerns have been enough to slow the growth of mobile payments significantly in many parts of the world.

Square makes a bold move on mobile commerce

| July 2, 2013

Square shows more aggression in the mobile commerce space

PayPal may soon have unprecedented competition as acclaimed mobile commerce firm Square makes a bold business move. Square has won attention in North America and elsewhere in the world for its approach to mobile commerce. Unlike some companies involved in this sector, Square has an interest in making mobile payments as accessible to consumers as possible. In order to accomplish this goal, the company developed a quarter-sized device that can be plugged into nearly any smartphone. This device allows consumers to make mobile payments as they see fit.

Square Market unveiled

Square boasts of a very productive partnership with Starbucks, which has seen a great deal of success in its adoption of mobile commerce. As Square grows to be more formidable in the highly competitive mobile commerce field, the company has taken steps to set it further apart from others in the sector. The firm has announced the launch of a new platform it calls Square Market. The Square Market exists as a platform through which merchants can list a variety of products, allowing consumers to browse and purchase with their mobile device.

Mobile Commerce - Square Mobile PaymentsPlatform may be welcome among merchants

The Square Market has a somewhat ambitious goal in that it aims to blur the lines between online and offline commerce. Square has been somewhat successful in this endeavor through its other ventures in mobile commerce, but the Square Market represents the company’s boldest attempt to engage consumers in a new way. The Market platform is expected to find a great deal of favor with merchants as it offers them a variety of features, such as the ability to set up an online store nearly instantly.

Square takes aim at competitors

The Square Market is designed specifically to challenge platforms like Amazon, Etsy, and eBay. PayPal is has also been targeted by Square, which has ambitious plans to become more involved in the financial services realm in the future. PayPal has long dominated this sector and has established a strong foothold in the mobile commerce space. Square may find it difficult to dethrone PayPal, but has committed to putting up a good fight with its competitors.