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Mobile commerce rakes in $12.84 billion in 2012

Dan Gendro | January 19, 2013

Mobile commerce set for aggressive growth, according to Forrester Research

Forrester Research, a leading market research firm, has released a new report concerning the performance of mobile commerce in 2012. Last year, more consumers made purchases from their mobile devices than ever before. This may be due to the larger number of people with mobile devices or the more comprehensive mobile commerce services that they have access to. Whatever the case may be, the report shows that mobile commerce had a strong showing throughout 2012, and this momentum is likely to carry the sector to new heights in the future.

Report shows proximity payments drive mobile commerce growth

According to Forrester Research, mobile commerce accounted for $12.84 billion in mobile payments by the end of 2012.The report divides mobile payments into three categories: Mobile proximity payments, peer-to-peer payments, and retail mobile commerce. The report shows that proximity payments, those powered by NFC technology, were one of the most popular ways for consumers to pay for products in physical stores. The report also shows that QR codes used to facilitate mobile transactions were also well received by consumers.

Mobile transactions to grow by 601% by the end of 2017

Forrester Research predicts that the mobile commerce sector will account for more than $90.5 billion in transactions by the end of 2017, a 601% increase over the transactions the sector had seen last year. NFC technology is still a major part of mobile commerce, so proximity payments are likely to continue being a popular option for consumers. Some parties are looking to move away from the technology, however, due to concerns regarding the security of a consumer’s financial information.

Some look for alternatives to NFC technology

Companies like Apple and PayPal are looking for alternative to NFC technology. Both companies are currently developing their own solutions, with PayPal’s mobile wallet service proving to be a somewhat popular alternative. The majority of the companies involved in mobile commerce, however, support NFC technology and its ability to facilitate mobile payments and keep consumers safe from exploitation.

Mobile commerce embraced by retailers in 2013

Dan Gendro | January 17, 2013

Retail industry begins devoting more resources to mobile commerce

The retail industry is beginning to respond to the gargantuan success of the mobile commerce sector, especially in the wake of the results of the 2012 holiday shopping season. During the 2012 holidays, more consumers made use of their mobile devices to shop for and purchase products than they ever had before, giving the retail industry a glimpse of the gains they could see by throwing more support behind mobile commerce. Shop.org and Forrester Research have released a new survey that highlights the view retailers have regarding mobile commerce in 2013.

State of Retailing survey highlights the work of retailers

The survey, called “State of Retailing,” shows that more retailers are beginning to shift their resources to better serve mobile consumers. More than 51% of the retailers surveyed noted that one of their top priorities was making sure that their websites and services were optimized to be used on mobile platforms, such as smart phones and tablets. Another 43% identified tablets and other mobile devices as one of their most important priorities, hoping to increase the traffic and commerce they see through these platforms throughout 2013.

Online traffic spikes in 2012

Retailers are reporting that they are seeing more traffic from online sources. This traffic grew in 2012 and is expected to continue gaining momentum well into 2013. Approximately 27% of the retailers surveyed noted that they have major overhauls of their websites planned in the coming year. These retailers are focusing on making their websites more accommodating for mobile consumers.

Retailers must be wary of pitfalls surrounding mobile commerce

While there are certainly major opportunities for retailers in the realm of mobile commerce, it is important for these companies to take time to identify the potential obstacles they may face in catering to mobile consumers. Embracing mobile commerce is a multi-faceted endeavor, and many retailers will likely begin feeling pressure to facilitate actual payments from mobile devices in their physical stores. Moreover, the more companies focus on mobile commerce, especially in the digital space, the less traffic their physical stores may see in the future.