Mobile commerce is paying off for eBay and PayPal
The world of commerce is changing and for some retailers that is bad news. For others, however, especially those with a strong online presence, mobile commerce is leading to a surge in business. eBay is one such company. The retailer has long boasted of one of the strongest Internet presences in its industry, making its transition into the mobile space very easy. Through the company’s PayPal subsidiary, it is seeing a major growth in business as more consumers begin to participate in mobile commerce.
Report shows PayPal handled more than $14 billion in payment volume in 2012
According to eBay, PayPal handled more than $14 billion in payment volume in 2012, triple the volume it had seen in 2011. A significant portion of this volume came from mobile purchases. eBay expects payment volume to reach $20 billion by the end of 2013, with growth being backed by the growing popularity of mobile commerce. PayPal is on track to catch up with eBay’s Marketplace business, which makes up the bulk of the company’s revenue.
eBay sees growth in its mobile application
Last year, eBay’s mobile application attracted 4.3 million new users, which accounted for $13 billion in merchandise revenue. These consumers have shown a strong interest in purchasing products from eBay using their mobile devices. Mobile commerce appeals to these consumers because they consider it more convenient than traditional forms of commerce. Being able to shop for products using a mobile device allows consumers to find exactly what they are looking for in a fast an efficient manner.
2013 may be a landmark year for mobile commerce
eBay has high hopes for mobile commerce in 2013. Through PayPal, eBay expects to continue establishing a very strong presence in this emerging sector. PayPal is currently developing a new platform to provide consumers with expansive mobile commerce services as well as introduce more security to mobile payments. The company already has a credit card reader than can be attached to any iOS device, which can facilitate mobile transactions.
Mobile commerce begins to reshape the retail industry
When mobile commerce first began showing promise in the mid 2000’s, retailers were very leery of the concept and all but shunned its existence. Much of the retail industry has been slow to warm to the notion of mobile commerce, only paying it serious attention as recently as 2010. Now, however, it has become a difficult task to find a retailer that does not support mobile commerce in some way, and this once shunned phenomenon is beginning to revolutionize the entire industry.
conScore sees major potential in smart phones
There are a vast multitude of market research studies that show that mobile technology has come to play a dominant role in the lives of consumers, especially where shopping is involved. According to comScore, a leading market research firm, smart phones are becoming the medium of choice when it comes to mobile technology, with such devices account for 63% of all mobile devices owned by consumers. These consumers are becoming increasingly interested in using their smart phones to purchase products.
Amazon establishes leadership in mobile commerce due to early adoption
Companies that adopted a strong focus on the mobile space early on have become very powerful in the realm of mobile commerce today. Amazon, for instance, is currently one of the leading powers in the mobile commerce and e-commerce worlds. Amazon’s site registers more than 5 million unique visits every day, the majority of which are also tied to purchases made from a mobile device. comScore notes that mobile search has also come to play a major role in the evolution of the retail industry and its reach to consumers, especially as more people use their mobile devices to browse the Internet.
Mobile devices represent promising opportunities for retailers
According to comScore, an average of 5.7 million smart phone users made online purchases between May and July of 2012. Approximately 13% of these consumers made purchases greater than $250, while the major spent well more than $40 on products they were interested in. eBay is another company that has seen the evolution of the retail industry through mobile commerce, claiming that mobile devices are the equivalent to consumers carrying an entire department store with them wherever they go. According to eBay, these consumers check their mobile devices approximately 40 times a day, giving retailers 40 unique opportunities to engage these consumers on a daily basis.
