Skip to main content

Mobile Commerce Upside will Reach $3.2 Trillion

The value of mobile commerce transactions conducted via mobile handsets and tablets will exceed $3.2 trillion by 2017, that's up from $1.5 trillion this year -- according to the latest market study by Juniper Research.

The increasing popularity of mobile devices for bill payment is reflected in the fact that the mobile banking sector accounts for the lion’s share of transaction values over the next five years.

However, to put global mCommerce into context, total financial transactions in the U.S. market alone exceeded $4,400 trillion in 2012.


Key Industry Sectors Embrace Mobile

The study findings observed that a number of key industries -- retail, airline, financial institutions -- were emphasizing the importance of the mobile channel as an engagement, delivery and payment mechanism.

Juniper cited the activities of Visa and MasterCard with regards to NFC certification and the airline industry’s wider eTicketing initiative as key developments in this regard.

Furthermore, they observed that the introduction of mobile wallet services was providing first time financial access in many emerging markets where the proportion of un-banked adults exceeded 50 percent.

In the same markets, partnerships between OTT storefronts and network operators – enabling payment via carrier billing – were enabling greater access to the digital economy.

The Hurdles to Adoption

However, Juniper noted that a number of hurdles still needed to be overcome if mCommerce were to achieve its potential in the coming years.

"A significant minority of retailers have yet to optimize their sites for mobile. Unless retailers ensure a seamless, user-friendly mobile shopping experience, they will fall behind competitors who are already using mobile channels to enhance customer relationships," said Dr Windsor Holden, research director at Juniper Research.

Juniper's study findings also pointed out that lengthy POS (Point Of Sale) infrastructure replacement lifecycles were hampering NFC deployments in both the retail and transport sectors, with players understandably reluctant to upgrade infrastructure without a demonstrable return on investment.

Popular posts from this blog

How a Digital-First CEO Leads Transformation

Some leaders reject the notion that "wait and see" is the best response to disruptive change. Savvy senior executives are already driving digital business transformation throughout their organization in an effort to gain a bold strategic advantage. According to the latest market study by International Data Corp (IDC), Digital-First CEOs plan to drive at least half of their income from digital business products, services, and experiences by 2027 -- that's ahead of the market average of 39 percent. Driven by their response to the COVID-19 pandemic, these business leaders have changed how they think about the relationship between business and technology, and how they approach the next digital transformation era -- from scaling digital technology to guiding a viable digital business. Digital Business Market Development IDC defines digital business as value creation based on technology, which entails: 1) Automated customer-facing processes and internal operations; 2) Provision

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th

5G Fixed Wireless Access Revenue to Reach $24B

Available Internet access at an affordable cost is essential for everyone to participate in the Global Networked Economy. The deployment of fifth-generation (5G) wireless communications infrastructure is enabling the introduction of lower-cost broadband services in some markets. Fixed Wireless Access (FWA) allows mobile network operators (MNO) to deliver high-speed Internet connections in areas that have either insufficient or no prior wireline broadband access services. It's also used in urban, suburban, and rural areas where fiber optic communication is considered too expensive to install and maintain. With this new technology, MNOs have the potential to provide broadband capability at similar levels to fiber optic networks. Fixed Wireless Access Market Development Therefore, FWA can be used to supplement existing wired broadband Internet service offerings, provide additional broadband capacity, or act as a backup service for home or business applications. Although FWA is well es