US mobile commerce set for strong growth
Internet Retailer, a market research and strategic analysis firm, has released data that suggests mobile commerce in the U.S. will see strong growth by the end of 2013. The data shows that 500 of the largest mobile commerce businesses in the country have been reporting strong results over the past several quarters. More consumers are showing interest in mobile payments as the services available to them find alternatives to NFC technology and become more secure.
Data estimates 71% growth in mobile sales
According to the data from Internet Retailer, mobile commerce in the U.S. could grow by 63% by the end of the year. Mobile sales processed by the country’s top mobile commerce companies are expected to jump 71% by the end of 2013, surpassing $30 billion. E-commerce giant eBay is expected to see mobile sales rise above $8.8 billion as more consumers opt to shop from their mobile devices than on PCs or in physical stores.
Retailers begin taking mobile commerce more seriously
Retailers around the world are beginning to understand that the mobile space is not something to be ignored. Mobile commerce is not simply a passing trend and consumers are not likely to give up shopping on their smartphones and tablets any time soon. Retailers that are slow to embrace mobile commerce could be missing out on a significant opportunity and run the risk of being left behind by consumers that are demanding better mobile services. Companies like eBay and Amazon have shown just how beneficial a focus on the mobile sector can be.
Security remains a top concern for many consumers
Mobile commerce has grown significantly in a few short years, but the sector is still in a state of infancy. While many consumers have shown interest in mobile payments, many more have expressed concern regarding the security of their financial information. Security concerns have been enough to keep people away from mobile commerce platforms regardless of the security features that these platforms boast of.
Mobile payments are on the rise
The Mercator Advisory Group has released a new report concerning consumer payments and banking. The report highlights the growing popularity of mobile payments among the U.S. population, showing that mobile commerce is becoming very common among young adults and certain ethnic groups. Mobile payments are often considered a subject for the tech-savvy and given the fact that younger generations are growing up with a strong connection to smartphones and tablets, as well as other forms of technology, these people could be significantly more comfortable with the concept of mobile commerce than older adults.
Young adults show comfort with mobile commerce
The report shows that young adults show the strongest interest in mobile payments in the U.S. Approximately 75% of young adults are reported to have their own smartphones or tablets, compared to the 55% of adult households that own such devices. The report shows that young adults are very likely to use their mobile devices while shopping, using the technology available to them to find better deals or to find out more information on products they are interested in. Mobile payments are becoming a major interest with these consumers, many of whom believe that mobile commerce is significantly more convenient than traditional forms of commerce.
Mobile commerce platforms prove inclusive for wide range of consumers
Smartphone ownership is also growing among certain ethnic groups. Those of Asian, Latin, and African descent outnumber others when it comes to smartphone ownership. Moreover, these consumers have also expressed a great deal of interest and comfort with the concept of mobile payments. For many immigrants to the U.S., mobile payments are considered easier as many mobile commerce platforms can easily calculate currency conversions while also removing the need for physical currencies.
Security remains a major barrier for mobile payments
While mobile payments are gaining popularity, all consumers have expressed concerns regarding the security of their financial information. Mobile commerce is not only a realm for consumers, as it has proven quite attractive for hackers. The threat of having financial information stolen and exploited has led many people to be weary of mobile payments.
