Category: Mobile Payments

PayPal acquires mobile commerce firm Modest

| August 24, 2015

Successful acquisition of Modest may improve PayPal’s presence in the mobile commerce market

PayPal has announced that it has acquired mobile commerce startup Modest. The Modest platform was designed to make mobile shopping much more convenient, introducing the concept of “contextual commerce,” which involves the use of contextual information in order to engage consumers more effectively. Modest has become a specialist in this aspect of the mobile space and has enabled merchants to sell products in an effective manner on a variety of platforms.

PayPal continues to establish dominance in the mobile payments field

PayPal has established a very strong presence in the mobile commerce market, having been an early pioneer of mobile payments. The company has been making several acquisitions in recent years in order to establish a greater foothold in this space. In 2013, PayPal acquired Braintree, which augmented the company’s position in the mobile commerce space and gave PayPal access to promising new technology that is being used to facilitate transactions.

Contextual commerce could become a powerful tool for PayPal

Mobile Commerce AcquisitionRegarding the acquisition, PayPal sees a great deal of promise in contextual commerce, believing that it represents a new frontier for the overall commerce space. This frontier is growing quickly and Modest is one of the few companies that have managed to establish a prominent foothold in this growing sector. The acquisition of Modest may allow PayPal to provide better services to merchants that are becoming more interested in engaging mobile consumers, but how PayPal and Modest will work together is not yet clear.

Modest will further augment PayPal’s ability to serve mobile-centric merchants and consumers

Modest allows its users to construct mobile applications or integrate an online store into their existing application. This allows them to sell products through editorial content on blogs or through advertisements and similar content, leveraging the power of “buy” buttons that have begun gaining popularity in the mobile media space. The Modest team will be working with Braintree in order to make mobile payments for PayPal more comprehensive. This represents the first acquisition that PayPal has made since it split from eBay.

Report highlights the growth of mobile commerce in the US

| August 21, 2015

Mobile shopping is accelerating at a rapid rate throughout the country

Internet Retailer has released its latest report concerning the mobile commerce space in the United States. More consumers have begun using their mobile devices to purchase products in the retail space, as well as several other sectors. As such, the market has been experiencing healthy growth and more merchants are beginning to focus on the mobile space in order to adequately engage consumers. This growth has shown no signs of slowing down in the foreseeable future.

Mobile commerce sales predicted to reach $104 billion by the end of this year

According to the report from internet Retailer, mobile commerce sales in the U.S. are expected to reach $104 billion this year. This represents a 38.7% increase over the mobile commerce sales that were reported last year. The report estimates that mobile commerce is growing 2.58 times faster than the e-commerce market, which is predicted to grow by 15% this year, reaching $350 billion. While e-commerce still represents a stronger force in the retail sector, mobile is becoming a more important focus for retailers.

US lags behind other countries in terms of mobile spending

U.S. Mobile Commerce Report While mobile commerce is growing quickly in the United States, this growth is lagging significantly behind other markets around the world. The report shows that the mobile commerce market is growing much quicker in Asia, with 14 of the region’s most prominent retailers reporting mobile sales growing by a compound annual growth rate of nearly 250%. In Europe, the mobile commerce market is growing 1.82 times faster than what is being seen in the U.S.

Retailers are becoming mobile-centric

By the end of this year, mobile commerce is expected to account for nearly 30% of all e-commerce sales made in the United States, an increase of 24.6% over what was reported in 2014. Many retailers are beginning to focus their efforts on mobile consumers, offering them new ways to shop for products online and in a convenient fashion. As these services become more available, mobile commerce is expected to continue experiencing healthy growth throughout the country.