Report shows that smartphone users make up the bulk of mobile commerce
Mobile commerce is on the rise all over the world, backed by the proliferation of mobile technology. As more consumers purchase mobile devices, the more exposed they become to mobile commerce. Many consumers have begun to favor this form of commerce over any other, claiming that it is simply more efficient and, therefore, more appropriate for modern society. A new report from Arbitron Mobile, a leading market research firm, suggests that consumers favor their smartphones when it comes to mobile payments.
Smartphones are favored in the US and Europe
According to the report, the majority of U.S. smartphone owners make use of mobile commerce applications. These consumers also spend a significant amount of their time shopping with these applications. Outside of the U.S., approximately 66% of smartphone owners in the United Kingdom make use of mobile commerce applications. On average, UK consumers spend 134 minutes of their time on these applications. This trend can also be seen in Germany, France, and other European countries.
eBay and Amazon apps prove most popular with consumers
The report shows that mobile commerce applications from eBay and Amazon are the most popular with consumers. These applications account for the majority of spending occurring in the mobile commerce field and consumers tend to be engaged with these applications more so than any other. This is partly due to the fact that these applications are tied to the online stores hosted by eBay and Amazon, giving consumers a constant connection to the products they may be interested in.
Smartphones may be dominant platform for mobile commerce
Mobile commerce has been gaining ground with tablet users due to the functionality of these devices. Smartphones, however, are likely to remain the most popular platform through which to participate in mobile commerce. Consumers still express some concerns regarding security, but most have shown that they are willing to conduct mobile payments through secure platforms.
Report highlights fragmentation in mobile payments
Mobile payments have been showing strong growth throughout the U.S., but this growth has not been as steady as had initially been expected. This week, the Federal Reserve Banks of Boston and Atlanta have released a new report concerning the expansion of mobile payments. The report suggests an emerging fragmentation in the mobile commerce sector that has served to derail some of the progress that has been seen in mobile payments over the past few years.
Mobile commerce shows modest growth over past two years
According to the report, entitled “U.S. Mobile Payments Landscape — Two Years Later,” the mass adoption of mobile commerce is unlikely without strong support and collaboration from multiple organizations and industries. Over the past two years, mobile payments have grown more popular but have done so under harsh criticism. Mobile commerce has been dogged by concerns regarding security and many of the issues that consumers have with mobile payments remain unresolved due to the lack of interest many companies have in this field.
Multiple approaches lead to slower growth
The report claims that the advent of mobile devices has created an effective way to create a dynamic marketplace for consumers. As mobile commerce entered the limelight, companies, particularly banks and telecommunications organizations, began teaming up to engage consumers in a new form of commerce. Various such partnerships and collaborations have formed over the past few years, with each partnership experimenting with ways to make mobile payments more attractive to consumers. This has lead to some fragmentation as the various parties focus on very particular aspects of mobile commerce.
Non-banks introduce more risk to mobile payments field
While innovation has been encouraged in mobile commerce over the past two years, this also comes with significant risks. Non-bank organizations that are getting involved in mobile payments represent the majority of the risks associated with this sector. This is due to the fact that these organizations rarely have the security experience that financial institutions have and are not held to the same laws that banks are.
