Author: Stephen

Tencent turns mobile commerce into a game

| July 8, 2014

Gamification of mobile payments is a hit with consumers

Tencent, one of China’s largest Internet organizations, has been finding a great deal of success in the mobile commerce field, and this may be due to the company’s approach on the mobile space. Mobile payments have been growing in popularity, but there is little incentive for consumers to stick with one mobile service in particular over another. Tencent’s WeChat platform is one of the most widely used mobile applications in the world, but it has only very recently begun to support mobile payments. In a relatively short amount of time, the platform has managed to win consumer loyalty through its unique approach to mobile commerce.

Tencent help digitize a longstanding tradition in China

Tencent has successfully “gamified” mobile payments, making it more appealing to consumers in general. In February, Tencent introduced a new way for people to celebrate one of the oldest traditions of the Chinese New Year: The exchange of hongbao, small, red envelopes that contain money. Every years, people throughout China exchange hongbao, but technology is beginning to play a role in the evolution of this longstanding tradition. Tencent introduced a new feature for its WeChat platform that effectively digitized hongbao.

Initiative encourages people to spend more through the WeChat platform

Tencent - Mobile CommerceThe service allowed people to send and receive digital hongbao, but the service also introduced some competition to the tradition. Using WeChat, people had the ability to make a red envelope containing money available to 20 people. The first ten people to claim the envelope would get a share of this money, creating an incentive for more people to use the WeChat platform. This competition actually encouraged people to spend more money through the platform.

Gamification of mobile commerce could make Tencent a leader in the mobile field

Gamification is nothing new in the mobile field. Many successful mobile applications have managed to attract support from consumers because they were able to turn everyday activities into an enjoyable game. Tencent’s ability to turn mobile commerce into a game could make it one of the leaders of the mobile field, especially if people continue to respond well to the company’s efforts.

Security may be impairing the adoption of mobile commerce

| July 3, 2014

Report highlights consumer concerns regarding mobile security

IDG Global Solutions has released a new report focused on the safety aspects of mobile commerce. The report notes that many people are willing to use their smartphones and tablets to shop online, but safety concerns keep them from doing so. High profile cyber attacks on retailers often discourage people from participating in mobile commerce, as they believe that their financial information is constantly at risk of exploitation. Poorly optimized mobile shopping platforms are also keeping people away from mobile shopping as well.

Retailers are finding it difficult to engage mobile consumers in an effective manner

The report notes that many people are visiting mobile websites from their smartphones and tablets, but retail sites have a problem with engaging these consumers effectively. Sites that do not have a retail focus are better equipped to handle mobile traffic, but many retailers have not yet figured out how to cater to the needs of mobile consumers, leaving them with poor online shopping experiences.

Consumers are beginning to favor their mobile devices over PCs and laptops

Mobile security protectionMany people are beginning to rely on their mobile devices almost exclusively when shopping online. The report shows that an estimated 40% of consumers have abandoned their PCs or laptops in favor of smartphones and tablets. Consumers appear to be particularly fond of tablets when it comes to mobile shopping, as their larger screens provide a more enjoyable shopping experience. Retail sites are somewhat more accommodating of tablet devices, but still suffer from effectively managing mobile traffic.

Security concerns are keeping people away from mobile commerce and many are uncomfortable with how retailers are using their personal information

Security is, perhaps, the most significant problem currently facing the mobile commerce space. Many people are cautious of visiting mobile retail sites because they do not believe that retailers are able to adequately protect their personal information. Some believe that retailers use their personal information for marketing purposes without permission. The security issue is affecting the adoption of mobile commerce among consumers in a negative way, giving people a reason not to shop online with their mobile devices.