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Mobile payments research study reveals explosive growth trend

JT | April 11, 2013

According to a new study, mobile transactions will become more prominent in the future.

The results of a recent study, conducted by Javelin Strategy and Research, has found that mobile payments have increased in popularity and that over the course of the next five years, they are likely to be the payment method that grows the fastest compared to all other types of transactions.

More consumers will turn to mobile devices to make in-store purchases.

While online shopping has gained a lot of attention, researchers who performed the Javelin study discovered that despite the popularity of e-commerce, 93% of the entire U.S. retail dollar volume is made up in brick and mortar retail stores. The study went on to report that it will not be long before mobile payments start to have a profound effect on the retail POS (point-of-sale) market.

Mobile payments are predicted to exceed $5 billion by 2018.

Results of the Javelin study revealed that the POS retail market is developing at an incredible speed. This is due mostly to the ever-increasing popularity of both the mobile payments and e-commerce markets. Consumers of today want a fast and convenient shopping experience and it is believed that digitized transaction methods will allow shoppers to achieve the superior in-store experience they not only crave, but expect.

Although mobile payments have yet to become one of the top payment options among retail shoppers, this is anticipated to change within the next five years. According to the study, by 2018, mobile payments in the U.S. will hit $5.4 billion. That being said, the researchers did also point out that they approximate retail POS purchases on the whole will be worth closer to the $4.2 trillion mark in 2018.

However, despite this much larger overall number, the amount estimated for mobile transactions appears to be nothing short of extraordinary. What’s more, the Javelin Strategy and Research study mentioned that, within five years, mobile payments will surpass all other types of payments in terms of having the biggest compound annual growth rate. Thus, in such a rapidly changing environment that is becoming more and more mobile-friendly, a big change in POS retail market trends is highly likely.

Mobile commerce popularity rises at smartphone sized mall

JT | April 10, 2013

Dozens of retailers have come together to make the unique new shopping app and site.

Tinyview has reported that the mobile commerce element of their iPhone app has become exceptionally popular and that it has built the concept of a smartphone sized shopping mall that is developing into a growing trend.

At the moment, Tinyview is reporting that 90 percent of their app users are accessing this section.

What the company has discovered is that consumers like the idea of being able to use an app for mobile commerce purposes, but they don’t want to have to download applications for every store or brand from which they would like to make a purchase. Instead, they are enjoying the opportunity to be able to buy products and services from a range of different retailers all within a single location.

This mobile commerce concept allowed the idea of the smartphone shopping mall to be created.

The discovery that consumers prefer shopping at many mobile commerce stores through one app allowed the Tinyview startup to develop and has created the smartphone shopping mall which has been steadily growing in its popularity.

By February this year, the startup had both an iPhone app and a smartphone friendly website where consumers could browse, learn more about products, and make purchases from 50 different retailers within a single location. It is essentially a single user interface that is placed on top of a collection of the mobile commerce websites of each of those companies, including big names such as: Target Corp., Walmart.com, Amazon.com Inc., Forever 21, Macy’s Inc., Abercrombie & Fitch, Urban Outfitters, Nordstrom Inc., and others.

To use the mobile commerce mall, consumers choose the merchant they want from among the various available stores. He or she can the search for or peruse the various items available and can keep track of products of interest using a “save” button on the product page. Save lists can be kept through a one-time sign-in to a Facebook account. Those lists can be used for making their own purchases, or they can be shared with family and friends on the social network.