Mobile commerce is the next big thing in the world of business, as more and more people around the world are using smartphones to browse and buy products online. People are increasingly finding it convenient to make purchases through their smartphones, as there are no geographical restrictions and the storefront fits easily into their pocket. In 2011 alone, 13.1 million users used their mobile phones to access retail content, out of which 31 percent had made a purchase, according to a Millennial Media (News - Alert) Mobile retail study. These are huge numbers, which have only increased since then. Moreover, these numbers are expected to continue increasing over the next few years.
A critical part of mobile commerce is payments security, and many companies are competing in this segment to offer the safest and the most convenient way to pay. One such company is Ezetap, which turns any phone into a point-of-sale terminal. Another company is OpenTable, which allows San Francisco residents to not only book a table in a restaurant, but also pay for their food using the app. Other companies such as Ribbon, PayPal (News - Alert) and Square Cash are sprucing up their mobile payment systems to offer better functionality for users. An example of such functionality is the introduction of peer-to-peer payments that allow users to send money to others for free.
Such advancements are sure to help the mobile payments industry continue to grow and cater to the evolving needs of customers. Due to the competitiveness of these mobile payment companies and the benefits that are afforded to customers and retailers, the mobile payments industry is set to grow to an estimated $117 billion by 2017, according to a study conducted by WorldPay. The study further showed that mobile payments alone will make up more than three percent of the world market by 2017, a three-fold increase when compared to 2012. This growth will be further supported by the availability of e-wallets, the market for which is expected to grow from $294 million in 2012 to $1.7 billion in 2017.
From users' perspective, this is great news, as these different mobile payment options help them get more out of their smartphones – it can double-up as a wallet, a shopping guide and so much more.
In short, mobile payment companies are creating an environment that is beneficial for users, retailers and the mobile industry as a whole. At the same time, they are setting up the stage for their own explosive growth.
Edited by Blaise McNamee
Back to Mobile Commerce Insider Home