Tag: mobile commerce

Report highlights division in mobile commerce between iOS and Android

On the surface, mobile commerce encompasses any form of shopping, payment, or banking done on a mobile device. Below the surface, however, mobile commerce is divided into two categories: Those with iOS devices and those with Android devices. While both parties of consumers regularly participate in mobile commerce, those investing in the field are very interested in which party is more active in this realm. Arbitron, a leading media and market research firm, has released a new report highlight which group of consumers has greater representation in mobile commerce.

Mobile commerce activity highest among iOS consumers

According to the report, iOS consumers participate in mobile commerce more than Android consumers. The report notes that mobile shopping is the most popular form of mobile commerce among iOS consumers. Approximate 67.5% of iPhone users, for instance, shop from their mobile devices, whereas 43% of Android users shop from their mobile device. iOS consumers are not only spending more time in mobile commerce, of course, they are also spending more money.

iPhone users spending more time and money in mobile shopping

The report shows that iOS consumers are more likely to be affluent and have access to disposable incomes. The report suggests that the average household income of these consumers is $105,200, compared to the $89,300 average income of Android consumers. iPhone users are also typically younger than Android users and more likely to engage in marketing and impulse purchases. The majority of these users spend their time on eBay and Amazon when shopping, according to the report.

Report could push Apple to take mobile commerce more seriously

The information provided by Arbitron is important for those investing in the mobile commerce field. Firstly, the report offers some insight on what consumer demographic is participating the most in mobile commerce, allowing companies to better target their products. Secondly, the information highlights the growing demand for mobile commerce services coming from iOS consumers, which may encourage Apple to take mobile commerce more seriously in the near future.

The latest research indicates that it makes up only 0.01 percent of the total in the United States.

According to a report that was just issued by Javelin Strategy & Research, mobile payments using contactless technology at the point of sale (POS) made up only a tiny sliver of the total volume in the United States in 2012.

The report indicated that this technology was used for only 0.01 percent of the total POS volume in the U.S.

The research data showed that the total amount spent over contactless mobile payments was approximately $500 million. At the same time, though, the report did not see a grim future for this form of smartphone based transaction. In fact, based on their predictions, things are looking bright in that area.

The forecast made by the report is that there will be an increase in mobile payments at a CAGR of 61 percent.

According to Javelin’s predictions, the compound annual growth rate that will be seen for mobile payments using contactless technology will be 61 percent this year. This will mean that the method will experience growth at a rate that is higher than any other method. In fact, it is predicting that this trend will continue over the next five years, and that in 2018, the total volume will have reached 5.4 billion. This will mean that it will make up 0.13 percent of the total POS volume in the United States in that year.

A Javelin industry analyst, Aleia Van Dyke explained this trend by saying that the point of sale market in retail is experiencing a very rapid evolution, as the popularity of smartphones and mobile payments takes off. There is a much greater expectation from consumers today, as they feel that the retail businesses where they shop should be providing an enhanced shopping experience while inside the walls of the store through the use of smartphones.

The rapid implementation of mobile payments and other transaction options such as prepaid and gift cards have helped with the adoption of other technology based options, among consumers, according to Van Dyke. As a whole, retail POS purchases last year brought in $3.98 trillion. The prediction for five years down the road is $4.2 trillion.