14 DAY TRIAL // Mobile transactions are expected to register an impressive growth in the near future, greatly helped by the emergence of smartphones that offer secure, easy-to-use payment applications. According to a recently published report from Juniper Research, the total value of digital and physical goods that should be bought via mobile phones is expected to top $200bn globally by 2012. For comparison, this year, the value should be of less than $100bn.
Among the digital goods included in the study, Juniper Research notes entertainment and tickets, while the physical goods refer to groceries, gifts and books. At the same time, the new study on Mobile Payments for Digital and Physical Goods shows that secure, easy-to-use, payment applications available on mobile phones are also helping ecommerce purchases by mobile to grow.
“Our research showed that the purchase experience has been enhanced by improved mobile commerce transaction processes due to faster mobile networks, more powerful devices and much more user friendly Smartphone apps. Amazon Payments for example has recently introduced payment-processing tools for mobile devices, enabling Smartphone users to buy with one click,” report author Howard Wilcox commented.
One of the main aspects that retailers and merchants need to take into consideration when it comes to the mobile payments market is the communication of cost of transactions. Users should know clearly what these costs are, so that they won't be discouraged from buying goods while using their mobile phones.
Other findings of the mobile payments report include: - The frequency of physical goods purchased will be higher than average in developed regions such as North America and Western Europe; - Brands, retailers and merchants have a significant opportunity to increase their revenues through highly targeted marketing campaigns, using apps and mobile web payments as a convenience play for users.
Mobile Payments Whitepaper and further details of the study 'Mobile Payments for Digital & Physical Goods: Players, Markets & Opportunities, 2010-2014’ are available on the research firm's website.