Posted: Tue 27th Mar 2012
No discussion of m-commerce and apps would be complete without looking closely at how electronic payments are likely to develop within the mobile channel, writes Dave (left). All of the existing retailers that have Apps allow their customers to make purchases. These transactions dovetail into their existing payment mechanisms.
What is clear is that consumers want to make purchases from apps and mobile-enabled websites, but they are concerned about the security of these payments. However, as Frerk-Malte Feller, MD at PayPal Australia says, businesses will increasingly see an expansion of their revenues from mobile sources, and none more so than from sales via apps.
"Today, a customer can stand in a bricks and mortar store, scan an item, price compare and read reviews online. Customers have a new found power and the tools to make intelligent purchase decisions. The technology is here. It is important that the m-commerce opportunity is fully understood and not simply viewed as an extension, or port, of an established web presence. Generally, smartphones have built-in cameras, are location aware, and have access to contact lists and diary notes. Combined, these tools provide customers with a very intelligent POS (Point of Sale) device; it has a built in scanner, can access inventory, alert you to upcoming birthdays, serve you location aware deals, and allow you to pay for goods and services with a couple of clicks. The opportunities to create compelling user experiences that drive greater conversion are endless."
In their current report on the outlook for mobile payments, KPMG stated: "Mobile payments are evolving rapidly and changing the way consumers and businesses operate. As technology and telecommunications companies roll out mobile payment applications and services, mobile strategies are beginning to transform existing business models in a number of sectors such as banking and retail." "Mobile payments are preparing to go mainstream. Nearly one in five respondents say that mobile payments are very important today. But the majority - 54 per cent - believes that, while mobile payments will be reasonably important in the future, today they are in their infancy. Most companies we surveyed assess that it will take two to four years for mobile payments to move into the mainstream in their primary region of business. KPMG believes that exploding smartphone growth, new applications, and economic opportunities will grow mobile payments at a much faster rate than our respondents anticipate." Gary Matuszak, KPMG global chair of the technology and communication states: "We believe that exploding smartphone growth and myriad opportunities will grow mobile payments at a much faster rate than our respondents anticipate. A wide variety of payments is ready for adoption, as several key players already provide or are rolling out mobile payments, and interest among consumers in utilising mobile payments is growing, in line with the industry's readiness to deploy them."