PayPal expands to the Middle East


PayPal teams with Aramex to enter the Middle East

PayPal has announced the launPaypal dealch of new operations in the Middle East. The move comes in the wake of reaching an agreement with Aramex, a logistics and transportation solutions provider. The two companies will work together to boost mobile commerce in the Middle East region, hoping to tap into the burgeoning market that exists there. PayPal will provide support to the Aramex Shop & Ship service, which is a shopping platform designed to make shopping easier in the Middle East for consumers from outside the region.

Middle Eastern market holds promise for PayPal

PayPal has many ambitious concerning mobile commerce, especially in emerging markets throughout the Middle East. The company had, in the past, been interested in promoting NFC technology as a way to facilitate mobile transactions. In 2011, PayPal abandoned NFC technology in favor of other pursuits in mobile commerce, such as developing its own credit card reader that can be attached to mobile devices. By teaming with Aramex, PayPal may now be able to make its ambitious concerning mobile commerce in the Middle East a reality.

Middle Eastern consumers have yet to be won over by online shopping

Mobile commerce has become exceedingly popular in North America and Europe, but is still in a stage of infancy in the Middle East. More consumers in this region are beginning to obtain mobile devices and showing interest in participating in mobile commerce. The penetration of smart phones and tablets, however, is still low, thus limiting the reach of any mobile commerce initiative. Mobile technology has established a strong foothold with Middle Eastern consumers, however, so it may just be a matter of time before mobile commerce begins building momentum in the region.

Aramex platform may be ideal for PayPal initiative

PayPal is keen to bolster the online presence of Middle Eastern businesses, both large and small. In doing so, the company believes that mobile commerce will attract the attention of consumers throughout the region. The Aramex Shop & Ship platform is expected to help in this endeavor as it makes mobile shopping more convenient for those with smart phones and other mobile devices.

Mobile commerce slated for massive growth


IDC Financial Insights report forecasts promising growth for mobile commerce

IDC Financial InsiMobile Commerce Growthghts, a leading analytical research firm, has released a new report that presents a global forecast concerning spending over mobile networks. The report, which is titled “Technology Selection: Worldwide Mobile Payments 2012-2017 Forecast,” sheds some insight on the growth of mobile commerce and what that could mean for the businesses within that burgeoning industry. More consumers and businesses are becoming enthralled over the concept of mobile commerce, and that is expected to have major financial implications for companies deeply involved therein.

Global payments to exceed $1 trillion

According to the report from IDC Financial Insights, global purchase volume through mobile devices will exceed $1 trillion by the end of 2017. The majority of this purchase volume will occur through mobile commerce and e-commerce platforms. Both platforms have proven popular amongst consumers who are interested in paying for products over the Internet and with their mobile device. NFC technology will also experienced robust growth during this period, especially as the retail industry begins to grow more inclusive of mobile commerce.

NFC technology seeing uptick in popularity

The growth of mobile commerce has been held back somewhat due to the lack of NFC-enabled mobile devices. Currently, these devices are in short supply, which is a problem because most mobile commerce platforms rely on the technology to facilitate mobile payments. Mobile payments can still be made through websites, such as Amazon and eBay, but purchases of physical goods with a mobile device remain limited. IDC Financial Insights notes that this is likely to change by 2017, due to the rate at which businesses are adopting NFC technology.

Growth has yet to meet actual potential

The report shows that mobile commerce is poised to see major growth by 2017, but IDC Financial Insights suggests that the gains the industry will see pale in comparison to its actual potential. IDC Financial Insights claims that the $1 trillion in purchase volume from mobile devices that is forecast for 2017 accounts for only 2.5% of the global potential of mobile commerce.