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.
Widespread adoption of mobile commerce has yet to be seen
Commerce is changing all over the world, largely due to the advent of mobile technology. Smart phones and tablets had once been considered simple tools to make some aspects of life more convenient for consumers. These technologies have come to inhabit a very important role in society, providing millions of people all over the world with entertainment, organization, access to information, and even a new way to pay for products. Mobile commerce has risen from the importance that mobile technology has established in the lives of consumers, but it has yet to become mainstream.
Consumers show interest in mobile payments, but adoption is still low
Mobile commerce is a relatively new trend in the mobile world. It refers to a consumer making purchases using a mobile device or engaging in other financial services, such as banking. The concept is simple enough and consumers all over the world have shown strong interest in mobile commerce. Much of this enthusiasm has yet to become tangible support, however, as many consumers show that they are interested but unwilling to participate in mobile commerce. There are several factors that contribute to this apparent reluctance.
Poor experiences may dissuade consumers from using mobile commerce services
ForeSee, a marketing analytics firm, suggests that some of the lack of support for mobile commerce being shown by consumers is due to poor experiences with e-commerce platforms. Because most e-commerce platforms were designed before mobile technology became such a widespread phenomenon, they are not optimized to be used on a mobile device. This leads to significant problems when these platforms are accessed by smart phones and tablets, creating a poor experience for consumers. Even platforms that are optimized for mobile viewing suffer from speed problems, making mobile payments very slow and unintuitive for consumers.
Singapore and Hong Kong show most growth in mobile commerce
Because of the problems consumers have been experiencing, mobile commerce has found only moderate success in many parts of the world. The only markets that mobile commerce has seen significant success in are in Asia. According to a report from Neilson, which was commissioned by PayPal, Singapore and Hong Kong have seen the most growth in mobile commerce than any other market in the world. This is partly due to the strong focus on mobile technology that businesses in these markets have, as well as the high number of mobile consumers that live in both regions.
