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Mobile commerce trends show increasing reliance on social media

Still, shoppers in the millennial generation have yet to be sold on the concept and aren’t yet buying into it.

Social media has been playing an ever growing role in mobile commerce trends when it comes to its impact on consumers as a whole, but when looking at specific demographics, it becomes rapidly clear that millennials aren’t yet all that impressed with what smartphone based shopping has to offer through social platforms.

When it comes to the drivers behind the growth of m-commerce, social media has been highly important.

Brands have been sending a considerable portion of their marketing budgets toward branded content, native advertising and overhauling their mobile apps to improve the experience of shoppers who are continually on the go. That said, there is a considerable difference in the impact of these mobile commerce trends on millennials than there is on shoppers from other age groups. This appears to suggest that the way that millennials want to interact with a brand and the way brands expect them to want to interact with them has not entirely aligned.

Millennial mobile commerce trends show that brands and individuals appear to have different expectations.

Faceook Continues to Push into Mobile Commerce trendsThe disconnect appears to lie in the place that millennials actually engage with m-commerce. According to recent data from BI Intelligence, consumers in that age group will use those platforms for researching products and services. This appears to be a strong preference over making a purchase through a mobile app.

The BI Intelligence GlobalWebIndex study has indicated that shoppers in the millennial generation will use Twitter, Facebook and other social media outlets for looking into products before making a purchase. However, they do not actually make those purchases over mobile commerce channels.

The mobile commerce trends revealed by the study include the estimate that 40 percent of global consumers between the ages of 16 and 24 years old are looking into products via social media. That said, 30 percent of the general population are doing so. Social media is not behaving as a direct product purchasing referral but is instead providing a means through which consumers can educate themselves. Brands that want to encourage purchasing may not find that millennial shoppers are buying through the same platforms they use for their product research, but they will still need to maintain a solid presence over those channels if they want to appeal to those consumers, with Facebook providing the most important influence over shopper decision making.

Retailers expected to focus more heavily on mobile payments in 2016

Enthusiasm for mobile payments is growing quickly among retailers and consumers alike

In 2015, the mobile payments space began to emerge as a mainstream power. Over the holiday season, various businesses were exposed to the success that could be had from a focus on the mobile sector, and their enthusiasm for mobile payments is likely to carry over into this year. Matt Asay, vice president of mobile for Adobe Marketing Cloud, noted that the holiday season was a fantastic time for mobile shopping despite the fact that many consumers reported stress from using mobile payments services.

Retailers are being pressured to improve the mobile shopping experience

Asay suggests that consumers are fairly ahead of retailers when it comes to mobile shopping. They are well aware of what they want in a mobile shopping experience, and retailers have been struggling to accommodate the demands coming from consumers. Converting mobile shoppers into actual paying customers has proven to be a challenge. Retailers are expected to focus more heavily on improving the mobile shopping experience in 2016.

Report shows that mobile payments will comprise 45% of all e-commerce transactions by 2020

Retail - Mobile PaymentsAccording to a recent report from BI Intelligence, mobile payments will comprise 45% of all e-commerce transactions by 2020. This will account for approximately $284 billion in sales. This is three times more in sales that is expected to be reported in 2016. Retailers may have to shift focus away from mobile applications in order to effectively engage the customers that are becoming invested in mobile payments. Mobile websites have, thus far, provided a better shopping experience for consumers than applications.

More retailers may begin supporting mobile payments in physical stores

Retailers are expected to begin supporting mobile payments in their physical stores as a way to provide consumers with a worthwhile experience. Many consumers already use their smartphones and tablets in physical stores, but only to search for and research products that they are interested in. Retailers may be able to increase conversion rates by supporting mobile payments at physical stores, allowing consumers to make purchases with their devices rather than traditional forms of commerce.