Who will emerge as a leader in mobile payments is not clear
Mobile payments are beginning to disrupt traditional forms of commerce as more consumers begin to rely more heavily on the smartphones and tablets. These devices have made it exceedingly convenient for consumers to purchase products and services either online or in-store. As mobile payments become more prolific, the mobile commerce market is beginning to brim with competition. Several countries and companies have invested heavily in this market, but it is not entirely certain who will emerge as the dominant force within this industry.
Report shows that consumers are eager for new mobile commerce services
BI Intelligence, a market research and analysis firm, has released a new report that offers insight on mobile payments and those that are leading the way in the current market. According to the report, much of the mobile commerce world is driven by what consumers want. Consumer demand, for instance, has lead to the development of mobile payments platforms that can be used both online and at physical stores. Approximately 52% of consumers wanted such platforms, which are likely to become significantly more available in the coming years.
Singapore among the top countries ready to embrace mobile payments
The report suggests that companies like Square and PayPal are likely to thrive in the coming years, largely due to their very early adoption of mobile payments. Both Square and PayPal have a heavy focus on the mobile space, making them more attuned to the demands coming from consumers than their competitors. In terms of countries, Singapore is considered to have the most mobile commerce “readiness,” with the U.S. and the United Kingdom boasting of average readiness.
US and European consumers are not fully accepting of mobile commerce
While companies could see significant progress in the realm of mobile commerce in the coming years, consumers have yet to be fully won over by mobile payments. BI Intelligence notes that only 10% of consumers in the U.S. and Europe participate in mobile payments. Many are willing, but concerns regarding security are keeping most consumers tethered to traditional forms of commerce.
The holiday season is rapidly approaching and that has major implications for the retail industry. Retailers are preparing for the busiest and most important time of year, in terms of business, and have targeted mobile consumers as a key demographic. More consumers around the world are becoming reliant on their mobile devices for shopping and daily activities. As such, these consumers present a promising opportunity for retailers looking to establish a constant level of engagement. Thus, the retail industry is growing more interested in mobile commerce and how it can be used to enthrall consumers during the holiday season.
New survey shows mobile penetration is high in the US
According to a new survey from Pew Internet, a leading non-profit research firm, shows that mobile device penetration has grown at a rapid pace. The survey suggests that 88% of all American adults now have a cell phone of some kind, with 63% of these people using their device to wirelessly connect to the Internet. With so many people relying on their mobile devices to connect to the Internet, retailers have seen an opportunity to establish a constant connection with these people. Many retailers believe that mobile commerce initiatives will entice these consumers to make purchases through their mobile devices.
Mobile commerce still unfamiliar for many people
Though many consumers have shown interest in mobile commerce, initiatives designed to get them to spend money through their mobile devices have had trouble getting any attention in the past. Mobile commerce is still a new and unfamiliar concept to many. It also comes with its own security issues, which could put the financial information of consumers at risk of exploitation. Moreover, some mobile commerce services rely on NFC technology, which is limited in terms of availability.
Successful mobile commerce initiatives could net major gains
Despite some of the problems mobile commerce faces, the retail industry is still keen to leverage this concept in an effort to engage mobile consumers. Those that can successfully attract the attention of these consumers may find that many of these people are willing to pay a lot of money to get what they want.
