Tag: mcommerce

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.”

Mobile and social channels may help the e-commerce sector grow more this year

Mobile and social channels may be the key drivers of e-commerce growth this year, according to Monetate. The firm notes that mobile commerce, in particular, experienced a period of healthy growth and activity during the 2014 holiday season. During this time, mobile purchases increased by 45% over what they had been during the time period of 2013. Approximately 16% of all e-commerce traffic came from mobile devices as well, making mobile a valuable channel for the larger digital commerce space.

Improved mobile experience may be needed in order to ensure that consumers continue to shop on their smartphones and tablets

Monetate notes that mobile experiences are improving, which is making it more likely for consumers to participate in mobile payments in some way. A good experience encourages consumers to continue using their mobile devices to shop for and purchase products online and at physical stores. Poor experiences have the opposite effect, especially if they become inconvenient and considered a burden to consumers that have come to favor mobility.

Engaging consumers in innovative ways can bring them deeper into the world of mobile commerce

Engaging mobile consumers can be extremely difficult. Monetate notes that businesses that want to engage in mobile consumers must do so in a specialized manner. According to the firm, bounce rates on mobile devices are 50% higher than on desktop computers, and consumers are 30% less likely to add products to their online shopping carts when shopping. Finding ways to create a frictionless, convenient, and enjoyable mobile experience can ensure that businesses have the ability to engage mobile consumers effectively.

Loyalty programs could be the key to further success in the mobile commerce space

Loyalty programs may be one of the first steps in driving deeper personalization of the mobile shopping experience. These programs offer rewards to shoppers that favor particular retailers. Monetate notes that these programs are the most profitable type of initiative that retailers can utilize. They also exist as a way for consumers to customize their experiences with the retailers that they are supporting.