Skip to main content

Global Upside Opportunities for Mobile Commerce

Mobile money services for the unbanked, popular in emerging markets, are showing both much faster adoption than m-wallets and related services addressing those with a bank account and a steeper revenue curve.

According to the latest market study by Pyramid Research, mobile payments are becoming increasingly integrated into a broader range of mobile services. Furthermore, services such as marketing, advertising, loyalty cards, coupons and discounts are also becoming part of the broader mobile wallet.

Mobile network operators in developed markets need to make a long-term commitment to the mobile payment opportunity and have access to large financial reserves to be able to reap long-term benefits.

While adoption of NFC-capable mobile devices and readers is finally showing real growth, Pyramid believes that mobile network service providers still face major challenges in mobile contactless payments.

The mobile commerce opportunity is becoming an increasingly attractive one, and operators can take a more prominent role in this ecosystem in a number of ways. One particularly attractive strategy that operators are adopting is that of merchant aggregators.

"To be successful, an online mall or marketplace has to provide a secure, trusted and easy-to-use environment for browsing through and paying for online products and services," said Stela Bokun, senior analyst at Pyramid Research.

11th Street, which belongs to SK Telecom's SK Planet subsidiary, is one of the best examples of a well-functioning, operator-managed online mall. SK Telecom claims that 11th Street is the country's second largest online marketplace -- and the largest devoted to mobile commerce.

To date, the mobile app, also called 11th Street, has been downloaded 11 million times. During 2012, 7 percent of the total gross merchandise value (GMV), which amounted to around $3.5 billion, came from mobile. In 2013, the mobile application portion is expected to take 12 percent of total GMV.

Typically it is very challenging for a single mobile network operator to make an online mall successful, and in some cases competing operators partner up in such endeavors. This approach in particular appeals to merchants who want to gain access to all mobile users from all partner networks by forming only one business relationship.

A notable example of such a partnership is Buyster, a joint venture of all French mobile network operators that was launched in 2011. Users of Buyster can pay both through apps and on the Web -- more importantly, they can use their mobile phone number to make a payment, as each mobile phone number is linked to a bank account.

The main benefit that the partnership provides to the operators -- in addition to making the service more appealing to merchants and users and thus stimulating higher adoption rates -- is the lower cost associated with provisioning the service. Buyster earns its revenue by charging commission rates and fixed fees for each transaction -- both vary depending on the merchant’s size.

Popular posts from this blog

Wireless Solutions Advance Work from Home Trends

Despite a challenging backdrop from the ongoing effects of the global COVID-19 pandemic, the negative impact on fifth-generation (5G) wireless supply chains has been minimal compared to the wider mobile smartphone market. This led to 5G mobile devices becoming more diverse, brought to market quickly at a variety of price points, thereby accelerating affordability and adoption. The mobile market is transitioning to 5G and many leading vendors are now exploring the low-priced 5G smartphone segment. According to the latest worldwide market study by ABI Research, 681 million 5G handsets will be shipped in 2022. Therefore, the race is on for OEMs to find that all-important level of differentiation in their flagship portfolios to help boost margins and improve market share. 5G Wireless Market Development Vendors continue to drive the adoption of new product designs, screen technology, chipsets, and camera setups -- notably within the flagship smartphone segment. Meanwhile, the leaders seek a

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of