Category: Mobile Payments

Mobile commerce skyrockets in China

| March 20, 2015

Mobile shopping has been growing quickly in China over the past year

Mobile shopping in China saw tremendous growth in 2014, according to a study from iResearch. The firm’s study highlights the growth of mobile commerce throughout the country, noting that many consumers have begun to shop online and in physical stores with their mobile devices. This trend is not unique to China, of course, as mobile commerce has been seeing healthy growth throughout Asia. The region is considered one of the fastest growing mobile commerce markets in the world.

Mobile spending triples in China throughout 2014, reaching new heights and encouraging retailers

According to the study from iResearch, mobile spending tripled in 2014 over what it had been in 2013. More people opted to shop with their mobile devices and they were more likely to spend larger sums of money while doing so. Mobile commerce saw 239% growth over the past year, while conventional e-commerce experienced on 49% growth. Mobile commerce accounted for 33% of all online sales made in China in 2014, a significant increase from the 14% that was recorded in 2013.

Demand for mobile commerce services is on the rise among interested consumers

Mobile Commerce on the rise in ChinaChina’s mobile commerce scene is dominated by a few large companies, such as Alibaba, but there are many services that are available to mobile consumers. These services make it possible to shop for and purchase products in physical stores with a mobile device. Smartphone penetration is on the rise throughout the country, which is leading to a greater demand for mobile payment services. This demand is expected to continue growing as more consumers become comfortable with mobile commerce.

Expansion of mobile commerce will continue, powered by retailer adoption and the demands coming from consumers

Mobile commerce is likely to continue expanding throughout China, powered by the initiatives that many retailers and Chinese banks are taking to engage mobile consumers. Conventional e-commerce still dominates the retail space, but mobile is beginning to play a more important role therein. Retailers are beginning to understand that if they do not engage mobile consumers, they may be missing out on promising opportunities.

Consumers still wary of mobile commerce

| March 19, 2015

Consumers are not completely comfortable with mobile payments yet

Consumers may be somewhat uneasy about making a mobile purchase, according to a recent survey from Baird Equity Research. Though mobile commerce has been gaining more attention, consumers still prefer to use more conventional forms of commerce when making purchases, especially in physical stores. Consumers may still be wary of the security issues that exist in the mobile commerce space, though many people have been growing more comfortable with the concept of making purchases with a mobile device.

Young consumers seem to be the most comfortable with the idea of mobile commerce and shopping online with smartphones

According to the survey from Baird Equity Research, four in 10 consumers in the United States have participated in mobile commerce. Approximately 10% of consumers said that they make an in-store purchase with their smartphones at least once a month. Three in 10 consumers said that they make a mobile payment online once a month or less. Those between the ages of 18 and 24 are the most likely to participate in mobile commerce as they are the demographic most comfortable with mobile technology.

Many people are concerned about security and lack of retail support

Consumers wary about mobile commerceThe majority of consumers are not convinced that mobile payments are better than more conventional forms of commerce. Using a credit or debit card or paying with cash is often considered simpler. Cash is also considered a safer way to pay for products by consumers that are not interested in mobile commerce. Some consumers do not participate in mobile commerce because retailers do not support in-store mobile payments, while others are concerned about their financial information being stolen and exploited by malicious groups.

Mobile payments will continue to grow in the future

Mobile payments are expected to gain more momentum in the coming years. New services are being released regularly and these platforms are becoming more secure. Retailers are also showing more support for the mobile space, where they see a great many opportunities to engage consumers that are eager to shop for and purchase products with their mobile devices.