Author: Dan Gendro

Mobile commerce having an effect on point-of-sale market

| May 2, 2013

Mobile Commerce POSMobile commerce continues to change the way people pay for products

With the advent of mobile commerce, the concept of using a smartphone or tablet as a point-of-sales terminal gained more traction. Consumers have been growing more comfortable with the idea of using their mobile devices to purchase products over the past three years. As a result, more of these mobile devices have been showing up in several markets as point-of-sale systems. For merchants that had been traditionally unable to facilitate credit and debit card transactions, this may provide them with the ability to reach a wider demographic of consumers.

Study details growth of mobile point-of-sale technologies

A new study from Javelin Strategy and Research, a market research and analysis firm, highlights the potential impact of new merchants entering into the mobile commerce field. According to the study, mobile point-of-sale transactions are expected to account for $1.1 trillion in new mobile payments. The study also suggests that the number of merchants able to accept mobile payments will swell by 20 million.

Mobile commerce becoming a formidable force in the world

Mobile commerce has become a major force in the world. The number of consumers with smartphones and tablets has made it possible for this new form of commerce to emerge. Several industries have begun responding the growing popularity of mobile commerce and new point-of-sale technologies are making it possible for consumers to have even more access to mobile commerce services. The more these mobile point-of-sale platforms grow, however, the larger threat they present to the traditional point-of-sale market.

Traditional technology may be losing ground

Traditional payment terminals, such as cash registers, may soon be considered obsolete. These point-of-sale platforms exist to manage physical currencies rather than virtual currencies. Mobile commerce allows for accurate transactions and removes the need for physical currency, which may be enough to push older technologies away from the industries that have relied on them for several years.

Mobile commerce continues to show signs of evolution

| April 30, 2013

Mobile Commerce EvolutionMobile commerce is becoming more social

Commerce continues to evolve as more consumers become tethered to their mobile devices and place more importance on social media. This evolution first began in the 80’s with the advent of the Internet and e-commerce. The proliferation of mobile technology brought about mobile commerce, which has only emerged within the past few years and is still considered to be in a state of infancy. Now, however, commerce is showing signs of a new evolutionary step, one called “participatory commerce” or “Pinterest commerce.”

Participatory commerce continues to gain some traction

Participatory commerce, as a term, was first coined by Mark Pincus, CEO of Zynga, in 2005. The term became somewhat popular in 2010 to describe the business model of FashionStake, a retail startup that was acquired by Fab.com in 2012. The term itself refers to a sales model that allows consumers to participate in the design, selection, and funding of certain products they are interested in purchasing. In some ways, this model is similar to popular crowdfunding platforms like Kickstarter, where individuals funding a project have some control over how that project will take form.

Retailers find value in social networking

Participatory commerce began being called Pinterest commerce in 2011 during the social network’s unexpected rise to fame. The retail industry was quick to see the possible benefits that Pinterest represented and moved to leverage the social network to their advantage. While Pinterest does not allow for online sales, it has proved to be a valuable platform through which retailers can expose consumers to new products and encourage online shopping.

New forms of commerce becoming increasingly social

The term is not widely used and is often considered to be an unnecessary subcategory of mobile commerce itself. It does, however, draw attention to the growing role of social media in the mobile commerce sector. Sites like Pinterest already hold a great deal of influence over consumers and retailers are becoming more adept at using these platforms to connect with mobile consumers in various demographics.