Category: Mobile Payments

Mobile commerce expected to surge in the US

| October 15, 2015

Report predicts significant growth in the US mobile commerce industry

Forrester Research has released a new report concerning the future of the mobile commerce industry in the United States. The report predicts that the sector will experience significant growth, as many consumers are beginning to use their mobile devices to shop online. In the coming years, retailers may find new opportunities to engage mobile consumers and find success, as this demographic is beginning to play a larger and more influential role in the retail industry overall.

More consumers will be shopping with their mobile devices in the coming years

According to the report, mobile commerce transactions are expected to surpass $115 billion this year, surging to $142 billion in 2016. Forrester Research predicts that there mobile devices will generate a 15% increase in e-commerce sales by 2020. Tablets, in particular, will account for 33% of e-commerce sales over the next few years. Consumers have shown that they favor tablet devices while shopping due to their larger screens, which allow for a more convenient shopping experience.

Converting mobile traffic into sales has proven to be difficult

Mobile Commerce ReportThe report shows that nearly one-third of the traffic that merchants are seeing come from mobile devices. The problem, however, is converting this traffic into actual sales. Approximately only 11% of this mobile traffic actually translates into sales. Many retailers have found it challenging to engage mobile consumers effectively. Consumers have reported problems with the mobile shopping experience overall, with slow download speeds and faulty mobile commerce systems being a significant barrier to completing a purchase.

Millennials could be the key to mobile commerce success

The United States has become a very prominent mobile commerce market, but if retailers cannot acclimate to the needs of consumers with smartphones and tablets, they may miss out on promising opportunities. Engaging Millennials may be the key to success, as these consumers have become a powerful force in the mobile commerce industry as a whole. The report from Forrester Research shows that 40% of those between the ages of 16 and 24, throughout the world, are using their mobile devices to shop online every month.

Indian mobile commerce firm to launch new hyperlocal service

| October 14, 2015

Paytm will be launching hyperlocal services in the near future

Paytm, one of India’s leading mobile commerce firms, is gearing up to launch new hyperlocal services that consumers may find valuable. Such services have already established a foothold in India, with consumers using them to find deals and special offers in their local areas. Paytm believes that consumers using the service will become more involved with mobile commerce, as it will allow them to rely more on their mobile devices when shopping and ordering food.

Hyperlocal services may encourage more consumers to become involved in mobile commerce

Initially, the hyperlocal service coming from Paytm will focus on food ordering, table booking, purchasing cinema tickets, and finding deals in their neighborhood. The company has patrnered with BookMyShow and Zomato in order to make the service available. Paytm has high hopes for the hyperlocal service, hoping to bring in nearly half of its total sales from this channel specifically by 2016. This goal may be very attainable, as many consumers have become heavily invested in mobile commerce as a whole.

Hyperlocal may be the next big opportunity for retailers and mobile commerce firms

Mobile Commerce - Flag of IndiaVijay Shekhar Sharma, founder and CEO of Paytm, believes that hyperlocal services are the “next big thing” for the mobile commerce space. He believes that hyperlocal services represent the perfect blend of the convenience of mobile shopping and the engagement potential that retails see in the mobile market. With smartphone penetration on the rise in India, as well as the expansion of the country’s mobile network infrastructure, more consumers are expected to become involved in mobile commerce in the coming years.

Paytm is receiving strong support from foreign companies

Paytm has reached the 100 million user mark and the company suggests that its user base, as a collective, makes 75 million mobile transactions every month. Paytm has experienced so much growth and success that it has also attracted the support of other companies involved in mobile commerce. China’s Alibaba and Ant Financial recently invested in Paytm through One97 Communications, its parent company. This investment is expected to help Paytm expand its services throughout India.