Starbucks finds success on the mobile payments front
Mobile payments are becoming more common in the U.S., especially as businesses show interest in new forms of commerce and begin catering to consumers with smartphones and tablets. One company has managed to establish a powerful lead on the mobile payments front and may serve as a powerful example of what can be accomplished by engaging mobile consumers. That company is Starbucks, which has been involved in mobile commerce since teaming with mobile commerce firm Square only a few short years ago.
10% of company’s transactions come from mobile devices
Starbucks and Square have developed a mobile payments system that leverages QR codes and, in some cases, NFC technology to allow consumers to pay for products with nothing more than their smartphone or tablet. During the early stages of the company’s endeavor, Starbucks did not expect to see a great deal of support for its mobile commerce initiative. Consumers, however, proved that they were more than willing to embrace the service being offered by the company. Now, mobile payments represent 10% of the company’s total transactions in the U.S.
Consumers flock to Starbucks’ mobile commerce service
Part of the reason consumers seem to enjoy mobile payments is due to the convenience that it represents. Consumers can pay for nearly anything by simply waving their mobile device at a payment terminal. Starbucks also offers a reward program for those that make mobile payments, further piquing the interest of consumers. The company notes that many of its consumers happen to be tech-savvy individuals that are interested in engaging in new technologies they are not necessarily familiar with. This may be yet another reason why Starbucks has managed to find success in the mobile commerce arena.
Many consumers concerned over security of financial information
While mobile payments have been growing popular in the U.S., many consumers have shown resistance to the idea of mobile commerce. Several platforms designed to cater to this sector, such as Google Wallet, have failed to win any significant support from consumers. Many people cite security concerns for their lack of interest in mobile payments, while others consider mobile commerce to be nothing more than a passing fad.
Mobile commerce may thrive as more consumers get their hands on smartphones
Canadians are becoming more reliant on their smartphones, according to a new report from Google, called “Our Mobile Planet: Canada.” Smartphones have established themselves as a powerful tool for many consumers who use them for business and entertainment. These devices have grown in popularity because they offer many services in a single platform that could only be found in numerous platforms in the past. The report shows that Canadians are more likely to throw away their televisions than part with their smartphones, and this could be a good sign for mobile commerce.
Smartphones continue to gain popularity among consumers
Smartphones initially became popular because they streamlined social interaction and provided consumers with access to a multitude of applications, which themselves made certain tasks more efficient and convenient for users. Today, smartphones and their features are very common and many consumers have become numb to the features they have become accustomed to using on a daily basis. Mobile commerce has managed to rekindle some of the excitement that smartphones had once embodied and many consumers are showing a great deal of interest in shopping online and paying for products with their mobile device.
Report shows that more consumers are participating in mobile commerce
According to Google’s report, approximately 56% of the Canadian population uses a smartphone, with eight in 10 of these consumers claiming they would never leave home without their mobile device. The report shows that most smartphones are used for social media and entertainment, but a growing number of consumers are using their smartphones to shop online. Currently, three-quarters of Canadian smartphone users have used their mobile device to shop online, with 27% purchasing a product using their device. Approximately half of consumers make an online purchase with their mobile device at least once a month.
Despite smartphone adoption, mobile commerce sees modest growth
The report shows that smartphone ownership is on the rise in Canada. This is likely to have a significant impact on mobile commerce in the future as more people with smartphones will take to shopping online. Canada is currently home to several mobile commerce initiatives that are looking to encourage consumers to purchase products with their mobile devices. So far, however, mobile commerce has only experience slow growth throughout the country.
