Tag: m-commerce

Gartner releases a report highlighting changing consumer behavior and mobile commerce growth

Gartner has released a new report that suggest that mobile behavior in the United States will continue to drive revenue growth in the mobile commerce space. The report highlights a “rampant” growth in interest in mobile payments, and this interest is expected to accelerate the growth of mobile commerce this year. Consumers are growing more comfortable with the concept of mobile shopping and, as such, are beginning to participate in this practice more regularly.

Mobile commerce revenue in the United States is expected to double this year

According to the report, mobile commerce revenue in the United States is expected to double this year. Many sectors of the mobile commerce field are expected to experience a 22% increase in revenue in 2015, with mobile commerce revenue as a whole growing by 50% in 2017. This growth is being powered by the number of people that are participating in mobile payments. As more people embrace mobile shopping, revenue in the mobile space will continue to grow at a rapid pace.

Large retailers may not to embrace mobile commerce more quickly than smaller retailers

While retailers have been showing more interest in mobile commerce, large companies may not need to accelerate their mobile initiatives to engage consumers. Large retailers will likely continue to focus on traditional engagement strategies, as in-store experiences continue to be the most critical part of their business strategies. Smaller retailers, however, may see great benefit by embracing mobile commerce, as it will allow them to better compete with their larger counterparts and attract the growing mobile audience that is becoming more influential.

New standards could lead to safer mobile transactions in 2015

The report notes that changing credit card standard will lead to a shift in liability for fraudulent transactions this year. Retailers will be required to make updates to their point-of-sale systems in order to comply with these new standards. The standards are meant to support safer credit card purchases and make room for the growing prominence of mobile payments in the retail space.

Merchants are losing an average of $334 for every $100 of fraudulently made purchases on their sites.

According to the results of the recent True Cost of Fraudsm Mobile study, which is held annually by the Reed Elsevier from LexisNexis Risk Solutions, mobile commerce is facing a very expensive problem through fraud.

Merchants have been increasing to m-commerce on a steady basis and fraudsters are seeing this as an opportunity.

According to the study results, revenue from mobile commerce that is lost as a result of fraud has increased by 70 percent, last year. It rose to 1.36 percent in 2014 after having been 0.80 percent in 2013. Comparatively, among all merchants, 2014 saw an increase that brought the total lost revenue from fraud to 0.68 percent, after having been 0.51 percent in 2013.

There are a number of different avenues for fraud in m-commerce, due to the complexity of the broader range of payment channels, such as online payments programs and digital wallet apps. This in combination with added access channels such as native apps, shopping comparison apps, and mobile websites can considerably increase the risk of fraud.

The research has revealed that the average number of payment channels offered by mobile commerce merchants is 4.5.

This is notably greater than the average number of payment types accepted by online or in-store merchants, which is 2.6. This higher number of acceptable types of payments has placed those companies at a notably higher level of fraud exposure.

Twenty one percent of all fraudulent charges that were recorded were linked to mobile commerce. This is upsetting as the number of transactions that are actually occurring over smartphones continues to be a small percentage of the total sales for merchants. Last year, 14 percent of all of online transactions occurred over mobile channels.

According to the LexisNexis Risk Solutions vice president of corporate markets, Dennis Becker, “Mobile commerce is going to be more widely adopted by merchants because customers are clamoring for the convenience. To reduce customer friction and sell more through the mobile channel, now is the time for mCommerce retailers to put in place fraud prevention tools to counter the disproportionate amount of fraud that is currently occurring.”