Report highlights the impact that mobile payments are having on digital retail
Mobile payments are gaining momentum in China. According to a new report from Forrester Research, the country is becoming one of the most active and fastest growing mobile commerce markets in the world. The report notes that e-commerce spending is on the rise, powered by the growing number of people that are using their mobile devices to shop online and make purchases. By 2019, the Chinese online spending space is expected to reach more than $1 trillion.
Companies may benefit from more mobile commerce activity
This may be good news for companies like Alibaba and Tencent, which have become heavily involved in the mobile payments space. Both companies are currently vying for dominance among mobile consumers, with Alibaba holding a lead. Online retailers have been enjoying the growth in digital spending, as they have managed to find new ways to engage consumers in an effective manner.
China is the largest online retail market
China is currently the world’s largest online retail market. In 2013, more than $307 billion in online sales were made throughout the country. According to Forrester Research, more than $440 billion is expected to have been made in online sales during the last year. The growing prevalence of mobile payments services is making this growth possible. Many payment firms have begun to emerge in China, looking to support the adoption of mobile commerce and make this sector more accessible to consumers. The country’s banks have also begun supporting mobile payments.
Mobile payments are expected to become more common and better supported in the coming years
In the coming years, China will likely continue proving itself to be a promising mobile commerce market. New mobile applications that support transactions are likely to become more common and consumers are expected to rely more on the Internet when they are shopping for products. As such, retailers are expected to place more focus on the mobile and digital spaces in the hopes of connecting with consumers that exist therein.