Russia may be emerging as a prominent mobile commerce market. According to PayPal, mobile shopping has become more popular in Russia, rivaling the popularity of mobile payments in many parts of Europe. PayPal Russia notes that consumers in the country are quite different than those in Europe as they are showing significantly more favor for mobile commerce. Convenience has something to do with this, as the company notes that many Internet users are shopping online because it is simply easier.
Russia may soon catch up with Europe in terms of mobile commerce transactions and online shopping
According to PayPal Russia, consumers are using their smartphones and tablets to place an average of 2.6 online orders every month. The average number of orders placed in Europe every month is 3. Mobile payments volume in Russia is only slightly lower than that found in Europe. Notably, Russian consumers are somewhat more cavalier when it comes to mobile commerce. PayPal notes that Russian consumers are more willing to push the boundaries of what they can purchase with their smartphones and tablets.
More consumers want to be able to make mobile payments in physical stores
Approximately 25% of Russian consumers have reported that they would like to be able to purchase products in physical stores using only their mobile devices. Another 22% said that they would like to be able to order food at restaurants before arriving and dining. This would cut down on the site people would have to wait at a restaurant before they were served their food. Placing a reservation through a mobile device would also cut down on wait times outside of restaurants.
Russia’s mobile sector is growing quickly
Russia is quickly emerging as a prominent mobile commerce market. Though the country is lagging behind others in terms of mobile payments volume and sales, more people are beginning to use mobile devices in their daily lives. The country’s e-commerce market reached $17 billion in 2013, and more consumers are demanding services that cater specifically to their mobile devices.
Net Element International, a technology-based company specializing in e-commerce, has announced that it will begin investing more heavily in mobile payments technologies. Mobile commerce has been the subject of a great deal of interest in recent years. Consumers and businesses throughout the world have shown strong support for mobile commerce, praising this field for the convenience it brings to retail and other sectors of business. Net Element International is one among several companies that are beginning to show very aggressive interest in mobile payments.
Funding to be provided to Skolkovo Foundation
Net Element International has announced that it has entered into an investor agreement with the Skolkovo Foundation, a research and development firm funded by the Russian government and based in Moscow. Through this partnership, the two companies will work together to develop new mobile payments technologies. Net Element will have access to their technologies during their early stages of development and will be able to use these technologies in a variety of pilot projects that are likely to take form in the near future.
New mobile payments technologies to be developed over next three years
More than $12 million is being devoted to the research and development of mobile payments technologies and services over the next three years. The services and technologies developed by Skolkovo are expected to play a major role in the progression of mobile commerce in Russia and several countries in the European Union. Net Element is keen to support the development of new technologies and services in order to establish a stronger presence in the competitive field of mobile commerce.
Russia may be ideal location for new mobile commerce services
Net Element is no stranger to mobile payments and has been investing in this field for some time. The company has already established a formidable presence in this field, but has begun seeing more competition emerge from large companies that also share an interest in mobile payments. Thus far, Russia remains somewhat cut off from the growth of mobile commerce, which may provide Net Element with a powerful opportunity to establish its leadership in this field.
