As ecommerce becomes bigger than ever and starts gaining momentum, we see interesting trends developing across the globe, many of them target at specific markets. This is especially true in certain emerging markets, because the impressive growth rates in these areas allow for innovative developments. Look at Russia for example, with 11-million credit cards in circulation and 140-million people in the country, both Celltick and Kupikupon are playing into that lack of credit card access, opting to send coupons to the user’s mobile devices instead. From there, users are able to use their phones to apply the coupon and purchase the product.
In South Korea, China, and Indonesia, the rate of mobile adaption is increasing dramatically as well. Estimates put Indonesia’s ecommerce industry at approximately $10 billion by 2015. While that sounds impressive in its own right, it is even more impressive if we consider that this would be ten times what it is today. This is something that online electronics start ups have to take into consideration.
The user needs to be comfortable
The first thing that any mobile e-commerce payment is going to need is to have an aura of credibility. Even though early adaptors are one thing, these are likely to take the plunge on any number of different ventures. It is important that any mobile e-commerce project feel ‘secure’, that the user does not feel that his or her data is likely to be passed around between unscrupulous individuals. This goes for all members of the financial industry – it is important to earn consumer trust. It is all too easy to stifle consumer adoption with mistakes.
It has to be easy and fast to use
Ease of access is another vital component, mobile e-commerce needs to feel as though it is the ‘fast’ alternative to having to log onto your laptop or desktop and complete the transaction. If online payment processing companies are unable to expedite the process, what is the benefit of mobile e-commerce except for the fact that we can use it away from a physical computer?
Is 2014 going to be the year?
For the last few years, every upcoming year is hyped as ‘the year’ that mobile payments are going to reach their tipping point, that it is going to dominate the market as many financial analysts expect it to do. However, it seems that in this case, the hype is moving a little faster than the global adoption rate.
While consumers have accepted (sometimes even demanded) mobile banking, mobile payments are still behind the expected rate of acceptance. However, chances are that we are close to seeing a shift here as well. It is normal for consumers to use their mobile device, whether it is for online banking, browsing, or shopping. But in order for mobile e-commerce to succeed, it has to have a solid base on which to build.
Technologically speaking, the mobile payment industry is moving at a rapid pace, it is advancing faster than ever before. Even though these are steps in the right direction, major banks and financial industries have to buy-in from the start. They have to consider the underlying service on which mobile e-commerce works. They cannot focus on the ‘device exclusively. That is the way to grow mobile ecommerce payments in the future.