Mobile commerce demand growing in Middle East and North Africa
Mobile commerce is growing in demand in the Middle East and North Africa region, often known as MENA, as more consumers get their hands on smart phones and tablets. These consumers are calling for new ways to purchase products online using only their mobile devices. Thus far, interest from the regimeaon’s telecommunications and retail companies has been limited, with some companies suggesting that they see only modest potential for success. Mobile commerce experts are suggesting that these companies could be missing out on significant opportunities.
Mobile payments may be the future of personal financial transactions
Mobile commerce specialists consider mobile payments as the future of personal financial transactions throughout the world. More consumers are making use of smart phones and tablets, using these devices to shop online and make purchases. Outside of the MENA region, mobile commerce has seen major success in the retail sector, with much of this success being found in Asian markets. The growing popularity of NFC technology is also driving interest in mobile commerce, despite some of the security concerns that have been raised about the technology in recent months.
Benefits of mobile commerce have yet to be shown in MENA region
Retailers in the MENA region have shown some interest in mobile commerce, but many have found it difficult to engage mobile consumers due to the limited support mobile commerce has received from the region’s telecommunications giants. Making mobile payments possible for a wide range of consumers has, thus far, been a difficult task in the MENA region as it requires telecommunications companies to expand and update their mobile service networks. Such updates are both expensive and time consuming and some companies have not yet been convinced of the gains they could see through an aggressive adoption of mobile commerce.
Pilot projects help raise awareness
There are several mobile commerce pilot projects currently taking place throughout the MENA region. Some of these projects have found success with consumers and retailers on a small scale. Many of these pilot projects are designed to raise awareness of mobile commerce rather than produce significant gains for retailers and telecommunications companies.
BankDhofar introduces new NFC-enabled device to Oman
BankDhofar, one of the leading financial institutions in the Sultanate of Oman, has launched a new NFC point of sale device. Mobile commerce has been growing in popularity in Oman, as well as in other countries in the Middle Eastern region. Economic growth is causing an incline in smart phone penetration, allowing more consumers to purchase high-tech mobile devices. As these devices become more popular, the demand for mobile commerce and other such services is on the rise.
Device uses NFC technology to process transactions
The new point of sale device from BankDhofar is designed specifically for merchants. The device incorporates NFC technology and the latest General Packet Radio Service communications technology to allow merchants to process mobile transactions. BankDhofar notes that the device’s NFC point of sale capabilities, in particular, will make the payment process for merchants and consumers much more efficient. The device will also make currency conversion a more straightforward process, a feature that may be well received by tourists.
Scarcity of NFC devices may limit reach of mobile commerce
Like others of its kind, the new device from BankDhofar can only be used with NFC-enabled mobile devices. These devices are currently rare, especially in the Middle East. As such, the reach of mobile commerce is somewhat limited in Oman until telecommunications can begin launching new generations of smart phones and mobile devices that make use of NFC technology. These companies are responding to demand coming from consumers, but the integration of NFC technology into a mobile device has proven to be a complicated issue. Security concerns have lead many companies to either abandon the technology, look for alternatives, or figure out ways to make mobile commerce safer for consumers, thus delaying the release of NFC-enabled devices.
BankDhofar predicts growing popularity of mobile commerce
Despite the low availability of NFC-enabled devices, BankDhofar believes that its new point of sale device will be a major boon to the retail industry of Oman. Merchants throughout the country have already shown a great deal of interest in the devices, and this interest is expected to increase well into the future, especially as mobile commerce becomes more common.
