The worldwide payments originating from Mobiles or transactions generating from m-Commerce are set to exceed US$ 235.4 Billion within this year itself, predicts Gartner. The field has been growing at a very healthy rate of 40% Year on Year (YoY). In fact, taking into consideration the historic growth rates, the mobile commerce segment should maintain an average ascension rate of 35% for the next 4 years.
Why such a robust future?
Internet users have been growing steadily. However, more importantly, a significant portion of those users are mobile based. Thanks to easy availability of internet-enabled portable devices like smartphones & tablets, users are easily & rapidly taking to the internet even on the go. While earlier estimates pegged this number at 380 Million, newer findings are predicting this number might even swell up to 450 Million. If the growth rate stays steady without much major external influence, the segment could possess a market worth of US$ 721 Billion by 2017.
What’s more interesting, is the fact that this trend is profoundly region dependent. It won’t be the developed countries like USA or EU that will contribute to the rising mobile commerce ecosystem. But countries like Singapore, India, and South Korea will be responsible to accelerating the growth.
A surprising & rather disappointing insight usurped during the research was the poor contribution from Mobile Wallets & other NFC based payment mechanisms. Near Field Communications or NFC had been touted to revolutionize small payments at multiple retail outlets. However, owing to dearth of contactless readers / payment terminals, the adoption of the NFC technology was very poor. Despite having NFC capabilities, many smartphone users simply did not enough avenues to routinely use the technology.
Majority of the m-commerce is predicted to come from money transfers and merchandise purchases which will account for about 71% and 21% respectively. Other avenues generating traction are bill payments, mobile banking & money transfers. The aforementioned countries have been seeing a lot of action on the Mobile innovation & sales. These findings merely extend the usage pattern findings. What do you think?
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