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.
Youth begin to flee from Facebook
The youth of the world are beginning to favor simple messaging applications for their mobile devices over Facebook. These applications allow consumers to create personal profiles, build networks of friends and other contacts, share digital content, such as video, music, and pictures. While these applications provide many of the same services that made Facebook popular several years ago, these applications have one thing that Facebook does not have: They are not Facebook.
Consumers beginning to favor simple messaging apps for their mobile devices
Young, tech-savvy consumers through North America, Asia, and Europe are beginning to flock to these messaging applications in order to connect with one another. Many of these applications, such as Kik and Whatsapp, both of which are very popular in North America, combine text messaging with social networking, allowing users to connect with one another quickly without relying on messaging plans offered by wireless network operators or the sometimes stifling design of social networking platforms.
Apps could provide better services than Facebook
These apps have an appeal to consumers based on the fact that they are designed around the concept of communication. Google Ventures partner Rich Miner suggests that the majority of interactions that people have with one another come in the form of text messages and phone calls. Many people do not involve themselves in social networks simply for the purpose of communication. Consumers are beginning to find that simple messaging applications can suffice their need to communicate with others. These applications can also effectively share digital content, removing yet another reason for consumers to rely on social networking platforms.
Facebook remains the champion of social networking
Facebook boasts of more than 1 billion users worldwide, thus solidifying it as the most popular and widely used social networking platform in the world. The company recently began embracing the mobile space more aggressively, producing the most used smartphone application on the market today. Nonetheless, consumers are still flocking to messaging applications that offer the same services as Facebook but without any association to the sometimes controversial social network.
