Mobile commerce finds strong growth in mobile applications
Mobile applications are beginning to play a major role in mobile commerce. These applications are starting to serve as adequate replacements for NFC technology, allowing more consumers to participate in mobile commerce than ever before. Canalys, a leading market research firm, has released a new report highlighting the growth of mobile applications and the role they are beginning to play in the adoption and expansion of mobile commerce. The report suggests that mobile commerce could come to replace traditional online shopping methods in the near future.
Report highlights performance of mobile applications
According to the report, downloads of mobile applications grew by 11% in the first quarter of 2013. Approximately 13 billion apps were downloaded during that quarter. Many of these applications offered mobile commerce services or some kind of in-app purchase opportunity. Together, these applications accounted for $2.2 billion in paid downloads and in-app purchases during the first quarter, a 9% increase over the previous quarter. The report suggests that the growing popularity of mobile applications, as well as their increasing value, is largely due to the convenience these applications offer, especially in regards to mobile commerce.
Mobile everything is becoming the favored solution for consumers
More consumers are showing favor for using their mobile devices for daily activities, such as online searches, shopping, and engaging in social networks. Mobile services typically offer consumers a range of opportunities to make in-app purchase, either by unlocking additional features for an application or simply purchasing a product through that application. Canalys estimates that the growing popularity of these applications will push the download mark to over 20 billion by the end of this year and that these applications will account for $3.1 billion in revenue.
Mobile commerce still facing several challenges
Canalys notes that the mobile commerce market is still immature and is difficult to measure accurately. There are several challenges that mobile commerce faces that could put a damper on the markets promising future. The most significant of these challenges is security, which is growing more important as consumers begin to understand how much their financial information could be at risk. The continued growth of mobile commerce will also be largely dependent on the social and economic impact it will have. A negative impact will cause the support for mobile commerce to all but evaporate, while a positive impact will encourage more consumers to get involved.